Chinese robo-adviser CreditEase reports strong first-year growth

By Moriah Costa on Thursday 27 July 2017

Savings and Investment

The firm’s robo-advice platform Toumi RA has grown by nearly a third every month.

The firm’s robo-advice platform Toumi RA has grown by nearly a third every month.

One of the leading Chinese fintech firm’s robo-advisor has increased its assets under management by one third every month since it launched a year ago.

Toumi RA, the firm’s robo-adviser, did not reveal its total assets under management but said it had increased by 33.6 per cent on a monthly basis. The platform made a 2.55 per cent to 11.48 per cent cumulative return over the past year. The results, released on July 14, did not give exact dates for the performance data.

The platform uses algorithms to invest in global exchange traded funds and offers nine cross-regional, multi-asset and portfolios ranging from Chinese and US stocks, bonds and gold investment products.

China is considered by some to be the next frontier for fintech and robo advice, as the growing middle class is looking for ways to invest.

Older investors seem more interested in the platform’s robo-advice service than in its peer-to-peer investing platform. Around 59 per cent of the platforms users are between the age of 35 and 50, with an average investment amount from RMB 500,000 to 3m (£56,000 to £340,000). In comparison, 78.5 per cent of the firm’s P2P investors are under the age of 35 and invest 3.5 times less than robo-advice investors.

The profile of its users indicates that the service is geared towards China’s growing middle class of 225m people, the firm stated.

Chinese robo-advice lags behind the U.S. but is growing rapidly, with many firms having just entered the market around a year ago.

Frank Wang, head and chief investment officer at Toumi RA, said in a press release that the Chinese market has more momentum and potential than the U.S. due to China’s “growing middle class, rising popularity of mobile internet and the lack of traditional investment advisors.”

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