Automated investing will open up opportunities for underbanked populations in Asia, according to Stockspot’s chief executive, Chris Brycki.
Speaking at the World Capital Markets Symposium in Kuala Lumpur last week, Brycki said Malaysia was an interesting case study in the national uptake of automated investing — and robo-advice more broadly — as a way to “improve financial inclusion” and “democratise” the wealth management industry.
“Malaysia has been at the forefront of facilitating the growth of fintech in the region as they understand the profound importance of innovation in generating a vibrant and sustainable economy,” Brycki said.
“The combination of technology and finance has significant potential to disrupt the business model of incumbents and appeal to a wider audience by promising user-friendly services that transcend demographic, geographical and socio-economic barriers.”
Brycki noted that despite managed fund fees being higher in Malaysia than Australia — with typical entry fees in Malaysia ranging from four to six per cent — the incorporation of automated investing and other fintech services would help local economies flourish by providing greater access for the general population to invest.
“The success of robo-advisers in markets like the US, UK and Australia will see automated investment services emerge in Malaysia; it’s not a matter of if, but when,” he said.
“It is a phenomenon that is growing [in the finance sector] exponentially across the globe…via a democratisation process that could gradually reconfigure a notable part of the institutional landscape, [as well as] challenge regulators to adapt.”
