Digital Kingdom

“The current robo-advisors can be roughly divided into three categories. The first type is machine configuration. After users tell their needs, the buying and selling transactions are all done by the machine. The second type is personalization. Intelligent investment advisers provide opinions and portfolios. It’s up to the individual to buy or not. The third type is the combination of man and machine. One-stop financial management platform, robo-advisors can help you with asset allocation, or you can make asset allocation by yourself, and charge different fees according to different configurations."

Gu Shaoze obviously has a deep research on this,

"Because it is managed by machines, the cost is very low, and the main profit is to charge customers management fees.

WealthFront uses computer algorithms and standard investment models to manage asset portfolios for investors. The first is to understand risk preferences through questionnaires and transfer funds to third-party custodial accounts. Customers can mobilize funds at any time. The company helps you monitor, analyze, and use investments. Combination theory, recommend investment and financial products to you."

"Isn't it smart enough now?"

Zhao Ziming asked,

"Yes, the current level of intelligence is not high, the service provided to users is not differentiated enough, and it is relatively simple and rude, mainly because there are too few parameters and insufficient big data accumulation. Generally speaking, it is to select some funds with good performance in the past to recommend to Customers, but good performance last year does not mean good performance this year. We all know that the annual fund volatility is still relatively large."

Gu Shaoze made no secret of the weaknesses of robo-advisors.

"Ok",

Zhao Ziming nodded and listened to him to continue.

"Robo-advisors also face a lot of competition, because technically it is difficult to form barriers, traditional companies can come from behind based on customer advantages and network advantages. They may develop or acquire related technology companies by themselves. Your five-year accumulation is not comparable to others. One year of development"

Gu Shaoze then cited several examples, such as Vanguard and Blackrock, all of which came from behind.

Despite the many challenges, Zhao Ziming is not prepared to give up. In comparison, he has more advantages.

He is not smart enough to establish technical barriers. This happens to be his advantage. I heard Gu Shaoze continue to say,

"But these are not problems for us. To be honest, I never thought that the domestic big data risk control can reach this point. With our existing technology accumulation, we will be able to launch products soon. The market will definitely be taken seriously at this time"

"Yeah" Zhao Ziming agreed, he also has confidence in this aspect.

You must know that Gu Shaoze was a member of the vanguard team. Vanguard is the godfather of the American index fund. Gu Shaoze’s outstanding performance can be seen. He will definitely look down on waiting for idle companies. This time he can agree to Jinlong’s invitation, and big data risk control Technology is the main reason.

"For our company, the current entry point is to tap existing user resources and lock the target group in the new middle class with net income of 100,000 to 500,000 yuan and investable assets of 200,000 to 5 million yuan. Among Jinlong’s existing customers, there are almost 100,000 middle-class customers, which is a great wealth.

High-net-worth clients, they have their own investment advisors, not to mention whether they are more capable than robo-advisors, the competition is too fierce, we have no advantage.For these mass affluent classes, buying wealth management products on the platform and depositing in banks is too monotonous. What they need is family planning and trend interpretation that can help them make adjustments to the family’s asset allocation.”

"The future direction of robo-advisors is to gather less and become more ant soldiers, and the other is differentiated services with highly developed artificial intelligence."

Zhao Ziming said his thoughts,

Gu Shaoze didn't speak, but Zhao Ziming continued to talk.

I have long heard that Mr. Zhao has a quick mind and can easily grasp the essence of things.

"The reason why high-net-worth clients are valued. There is a team of investment consultants serving them, because the fund base is large. Even if they only charge a small fee, the consultant team also gets a high return. They can concentrate on high-net-worth clients. customer service.

For the middle class, they can only gather sand into towers to form ant soldiers, gather people with common interests, treat everyone as a high-net-worth customer, and have a team to serve them. If the base is large, the return will be greater. Big.

After all, for many people, only familiar with stock investment, futures are not familiar, let alone fixed asset investment, real estate, securities, gold and silver precious metals, wine, art, these fields have higher investment returns, but many people Not able to reach"

Zhao Ziming said,

Why the richer people are easier to make money, because there are more opportunities for contact.

"As for the highly developed differentiated services of artificial intelligence, let’s not talk about it. What you just mentioned is the US smart investment field. At this stage, it is just simple and crude investment advice. Of course, the domestic sector has not yet started. Once it starts, everyone will Go this way first.

Analyze financial data through artificial intelligence and provide general investment advice. Basically, it does not vary from person to person. It is a general-purpose robo-advisor. With the further development of artificial intelligence, robo-advisors will follow each investment Personalized investment advice is given based on the person’s financial situation, preferences, and risk tolerance. The specific transaction behavior is completed by the investor and belongs to a personalized robo-advisor."

Gu Shaoze admired that Zhao Ziming should have understood the field of robo-investment for the first time, and it would be good if he could have his own thinking.

"How do you plan to start"

Zhao Ziming had a general understanding of the entire industry and began to care about specific matters.

"My initial plan is to add artificial intelligence and machine learning algorithms to optimize on the basis of traditional financial models, and incorporate relevant professional fund research experience, to build Monte Carlo from three levels of asset allocation, bottom fund screening, and risk warning. I am good at simulating effective frontier models, behavioral momentum fund analysis decision trees, and multi-quadrant risk early warning matrix model systems. These are what I am good at. In conjunction with the rich technology accumulation of our Golden Dragon company, according to my estimation, the first generation of products will be online, and there will be no more than three month"

Gu Shaoze talked about his plans. Today's communication with the boss was to gain the greatest support. The previous meetings between the two were all general discussions.

"Okay, you can set up a robo-advisor project team in the technical department. I will let Liu Shuhe fully cooperate. If you need to talk to me directly,"

Zhao Ziming thought a little and agreed, just as he supported Shen Yiyi's development of consumer installment business.

Since we have to do it, we don’t look forward to the future. The robo-advisor market is vast, and if done well, the effect is no less than the scale of the online loan market.

Microfinance, consumer installments, and robo-advisors, as the troika driving the development of King Long, he hopes that they can play a role of 1+1>2 and produce qualitative changes.