New York-based fintech wealth manager Hedgeable is launching its platform in Hong Kong and Singapore, and claims to offer cheaper, round-the-clock, customised private banking services than rivals.
“We target young professionals who don't yet have enough net-worth to go to a traditional private bank like HSBC or DBS,” said Michael Kane, who co-founded the firm in 2009, in an email reply to Fund Selector Asia.
He reckons that traditional private banks only target the 20% of the market that is ultra-wealthy, and Hedgeable is aiming to fill the void.
“There is projected to be more than $43tn in wealth held by the mass affluent in Asia within 5 years, yet these customers have absolutely nowhere to go,” he said.
Investors only need to stump up $1 to get started on the platform, and fees range from 0.3% to 0.75%, depending on asset size. Portfolios can vary “in more than 200 ways”, according to the firm’s website, depending on portfolio size and investment goals.
Kane also believes this flexibility differentiates his service from robo-advisers which tend to focus on index tracking products such as Exchange Traded Funds.
“A robo-adviser provides automated access to low-cost and passive investing, whereas private banks offer very customized portfolios, alternatives investments and hedging, rewards programs, financial planning, tax advice, and more services,” said Kane.
Average client asset size is now $55,000, and the firm has total assets under management of $60m.
The firm plans to roll out the platform in Korea, Japan and other Asian markets at a later stage.