With the accelerated development of artificial intelligence (AI) technology in recent years, AI applications have become increasingly prevalent across various industries, including the financial sector. In Hong Kong, one of the digital banks, WeLab Bank, launched its intelligent wealth management service, GoWealth, approximately three years ago, achieving an investment return of nearly 24%. Another retail bank, OCBC Bank (Hong Kong), introduced an AI stock selection tool called AI Oscar last month, aiming to assist clients in making more informed trading decisions.
After approximately two months of testing, WeLab Bank officially announced the launch of its intelligent wealth management service, GoWealth, in July 2022, becoming the first fully digital bank in Asia's major markets to offer such a service independently from traditional banking groups. GoWealth combines the power of financial technology with the professional investment expertise of Allianz Global Investors (AllianzGI), one of the world's leading asset management companies, to provide "intelligent navigation" for clients' financial goals.
A WeLab Bank spokesperson noted that the GoWealth portfolio index has delivered outstanding performance since its launch, with returns reaching 23.8%. Moreover, 98% of GoWealth's clients with active investment positions have achieved positive returns.
Predicting success rate of investment goal
The returns since launch refer to the performance of the GoWealth Mixed Asset Portfolio Index from June 30, 2022, to Dec. 31, 2024. Positive investment returns are calculated based on the portfolio returns of GoWealth's clients with active positions as of Dec. 3, 2024, excluding applicable fees.
Through the intelligent investment engine jointly developed by WeLab Bank and AllianzGI, GoWealth can calculate the "goal success rate" of investment plans in real time using algorithms. This is done by simulating potential wealth growth based on clients' goal settings, recommended portfolio allocations provided when establishing goals, and GoWealth's assumptions about capital markets. The system also incorporates the latest capital market assumptions into investment recommendations to help clients manage risks.
The intelligent system also tracks clients' goal progress. If market volatility affects progress, it will "intelligently" prompt clients to adjust their strategies, assisting them in managing their wealth and continuously progressing toward their investment goals.
OCBC Bank officially launched its AI stock selection tool, named AI Oscar (short for OCBC Securities' Customer Artificial-Intelligence Radar), last month. This stock selection tool was independently developed by the bank specifically for individual investors.
OCBC Bank said in response to inquiries that it has invested substantial resources in the independent development of AI Oscar, with the entire research and development process lasting three years. Unlike traditional rule-based AI models, AI Oscar is built using an advanced deep learning network that processes and analyzes vast amounts of financial market data daily, conducting parallel evaluations through intelligent algorithms.
In addition to referencing the fundamental and technical indicators commonly used by trading experts, AI Oscar also identifies potential price signals for individual stocks in the market through a deep learning model with millions of parameters, providing valuable information to investors.
Quick response to market changes
Since the launch of AI Oscar in Hong Kong, OCBC has described customer response as "extremely positive." Clients have praised the stock selections provided by AI Oscar, considering the insights derived from extensive data analysis to be highly valuable references for their trading decisions. AI Oscar also effectively saves them time on data analysis, helping them respond more quickly to market changes and seize more investment opportunities.
(Source: Ta Kung Pao; English Editor: Darius)
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