One of the original Robo-Advisors, «wealthfront» is moving into new territory for an automated investment service, lending. How long will it be before we see the same model in Asia?
The new service called «Portfolio Line of Credit» allows existing wealthfront clients with at least $100,000 invested through the firm borrow up to 30 percent of their account value, the Robo-Advisor said in a blog posted on its site.
Through a partnership with RBC Capital Markets, the fintech firm says the process can be done instantly and without the traditional paperwork, claiming on their site that «you’re already approved when you open your account! It takes 30 seconds to sign up, and in many cases you get your money in 24 hours.»
Asia Next?
Because the process is automated and conducted online there are no extra fees for clients who only pay the interest on the amount borrowed.
So the template has been carved out and surely we will soon see an ambitious Asian based financial technology firm tie up with a regional bank or financial services firm to roll out a similar model across the Asian region.
