Analysis Of The Development Problems Of Chinese Robo-advisor Platform

In recent years,the intangible investment assets of China's residents have continued to increase rapidly.Emerging technologies such as big data,cloud computing,and artificial intelligence have also continued to penetrate into China's financial sector,promoting the transformation of wealth management methods.At the same time,the traditional investment of “high threshold,high fees” has been unable to adapt to the development needs of China's inclusive finance.Under this background,robo-advisor platform with low threshold,low rate and high information transparency has emerged in China.In April 2018,the People's Bank of China and the China Banking Regulatory Commission,the China Securities Regulatory Commission,the State Administration of Foreign Exchange jointly issued the “Guiding Opinions on Regulating the Asset Management Business of Financial Institutions”(known as the “New Regulations on Asset Management”).The introduction of the “New Regulations on Asset Management” marks the unified supervision of China.The arrival of the era of big capital management clearly breaks the demand for rigid redemption,which is of great benefit to China's entire smart investment industry.Therefore,the development of robo-advisor will usher in more market opportunities.Today's robo-advisor has made great progress in developed countries,especially in the US market.In contrast,the domestic robo-advisor started late.It is in the initial stage of development.Nowadays,with the rapid development of the overall situation,there are many problems.It is also beginning to be increasingly exposed,but in the long run,the robo-advisor has broad prospect for development in China.This paper starts with the development status of China's robo-advisor,comparing the development history,asset scale and user usage of the US robo-advisor.It comprehensively expounds the development of China's robo-advisor at this stage.What's more,through the comparison between China and the United States,we can find out that the scope of optional investment targets in the development of China's robo-advisor is narrow,the degree of intelligence is low,the profitability is unstable in the short term,the platform is not attractive to investors,and the risk control ability is relatively weak.On the basis of these problems,this paper deeply analyzes the reasons,including the slow development of China's ETF market,the poor quality and openness of financial data,the immature effectiveness of algorithms and models,insufficient education to investors and imperfect legal supervision system.Finally,based on the experience of the US advanced platform,and in response to the development of China's robo-advisor,we propose suggestions for optimizing China's robo-advisor,such as enriching the types of investment targets,configuring the optimal investment portfolio,adopting the human-machine combination mode,improving the accuracy of user portraits,establishing differentiated business strategies,optimizing decision-making models and technical algorithms,strengthening education and protection to investor,promoting cooperation between robo-advisor platforms and licensed financial institutions,improving information disclosure system and legal supervision system,etc.Through the research of this paper,we can solve the existing problems of China's robo-advisor platform and narrow the development gap with the United States.These suggestions may improve the overall development level of China's robo-advisor.