KB Securities, Non-face-to-face Investment Discretionary Robo-advisor Subscribers Grow 46% Monthly on Average

[Asia Economy Reporter Oh Ju-yeon] KB Securities announced on the 20th that the number of customers subscribing to its non-face-to-face discretionary investment robo-advisor service, jointly developed with a fintech robo-advisor company, has rapidly grown by an average of 46% per month, increasing from about 100-200 per month at the service launch to around 3,000 per month currently.

In April last year, KB Securities launched Korea's first non-face-to-face discretionary investment robo-advisor service based on Open API in collaboration with December & Company Asset Management and Quarterback Asset Management.

This service combines KB Securities' securities trading system?including account opening, domestic and international stock orders, and currency exchange?with the fintech company's advanced robo-advisor management technology. It passed the government's testbed to verify operational capability. Customers can subscribe, open accounts, invest, and consult through the fintech companies' mobile apps, ‘Fint’ and ‘Quarterback’.

Unlike typical robo-advisor advisory services in the market, this service manages assets automatically using AI algorithms based on the investment preference information entered by customers, without requiring separate order processes from them. This feature allows customers to invest more easily without much concern. Accordingly, voluntary subscriptions have steadily increased even without large-scale promotions.

KB Securities is expanding by understanding these customer needs and building a collaborative ecosystem model with various fintech operators such as OpenTrade and BankQ. KB Securities provides its infrastructure via Open API to fintech companies that need securities platforms, enabling fintech companies to develop various businesses based on the securities platform, creating a mutually beneficial collaboration model.

During the first year after the service launch, the number of robo-advisor subscribers surged in April, following the sharp stock market decline due to COVID-19 in March. While general stock investors opened accounts rapidly during the stock market crash, robo-advisor customers tend to pursue stable, long-term investments. This indicates strong interest in robo-advisor indirect investment products that actively allocate and diversify assets across domestic and overseas investment assets.

In fact, portfolio management shows lower volatility and stable performance compared to major indices, attracting customer interest. Reflecting this performance, 74% of customers make additional deposits, demonstrating high service trust and satisfaction.

Furthermore, as of the end of April, the average age of service users is 29.7 years old, with the digitally receptive 20s and 30s forming the main customer base. The service is well received by many young people as it allows fun and convenient investment even with small amounts.

Jang Seung-ho, Head of the Digital Innovation Division, said, "We hope to continuously expand partnerships with fintech companies that have excellent technology and innovative ideas so that many customers can access asset management more conveniently," adding, "We plan to actively promote the expansion of a digital ecosystem where both regulated financial companies and fintech companies can win together."

This content was produced with the assistance of AI translation services.