Blog
HOT TOPICS
  • Summits & Events
  • Fintech News
  • New Fintech Technologies
  • Technology
  • Online marketplace lending
  • U.S. consumer credit
  • High yield investments
  • Consumer loans
  • Asian investors
  • Cryptos
  • Market Insights
  • Investment Assets
  • Fintech 101
  • hot
ARCHIVES
Follow
Us
Five Major Hurdles Facing Professional Asian Investors
Oct 17, 2017
Five Major Hurdles Facing Professional Asian Investors

Professional investors throughout Asia are facing major hurdles when they are looking to expand their portfolios. However, thanks to a growing global economy, exciting new technology, and innovative business practices, none of these hurdles are insurmountable. As long as investors understand the obstacles in their path they will be able to find strategic partners and dynamic fintech startups to help them achieve their financial goals.

Five of the major hurdles facing investors today include:

1. Assessing cyber risks

2. Access to global high-yield investments

3. Slowing Asian based markets

4. Unwieldy fee structures

5. Lack of efficient investment platforms

1. Assessing Cyber Risks

Hackers and international criminal organization are constantly seeking to obtain as much access to private financial information as possible. Investors must be cautious about who has access to their sensitive information. Sadly, there are few regulations that govern when a firm must acknowledge that customer data may have been compromised. Without proper encryption and regulatory safeguards, people may begin to lose confidence in the online banking and investment system.

The rise oftechnologies like blockchaincould help keep data safe. However, currently not enough firms are using the full power of blockchain to make data secure and transactions transparent.

2. Access to Global High-Yield Investments

Many of the best high-yield,low-volatility investment opportunitiesare currently in Western countries. Asset classes such as the U.S. consumer debt market is very attractive to institutional investors, but many professional Asian investors do not have easy access to these investments.

Traditional brokerages and investment banks are not doing enough to help regular investors expand into these high-quality investments.

3. Slowing Asian Based Markets

While many Asian markets have been some of the fastest growing markets in the world for more than a generation, as these markets are maturing, their growth is slowing. Investors who want to continue to increase the value of their portfolios will have to look to other parts of the world to earn the kinds of returns they are used to. However, finding the right opportunities outside of Asia is often difficult due to a lack of information to perform adequate due diligence.

4. Unwieldy Fee Structures

ManyAsian investorsare stuck working with investment banks and traditional brokerages that have complex, unwieldy fee structures. Every year investors are seeing more of their returns gobbled up in a series of different fees.

These high transaction fees are causing long-term value issues for investor portfolios. Most likely, competition from low fee fintech firms will eventually drive down the fees that traditional financial service institutions charge.

5. Lack of Efficient Investment Platforms

Asian investors that want to have their money invest efficiently often run into a problem finding the right platform to use. There are not enough easy to use platforms that give investors easy access to vettedasset classes that are high-yield and low-risk.

Investors want tools like a simple dashboard to check the growth of their portfolio and to monitor potential future investments. They want to be able to move in and out of assets quickly and easily.

However, until there are Asian focused fintech platforms, many investors will find they waste a lot of time and money tracking down investment opportunities and in aggressively managing their portfolios.

 

ByJason McBride

0/500
Send out successfully. Will present your comment later.
SEND
SIGN UP
Sign up to receive market insights, investment education and the latest FinEX Asia news.
Are you a professional investor?
In Hong Kong, professional investors (Professional Investors) are divided into three categories:

A.    Institutional Professional Investors – i.e. those falling within paragraphs (a) to (i) of Part 1 of Schedule 1 to the Securities and Futures Ordinance (SFO), e.g. authorised banks, licensed intermediaries.

B.    Individual Professional Investors – i.e. individuals who, either alone or with their spouse or children on a joint account, have a portfolio of at least HK$8 million or its foreign currency equivalent. The term “portfolio” is defined as a portfolio of securities, money held by a custodian or a certificate of deposit issued by a Hong Kong authorised financial institution or a bank which is regulated in any other jurisdiction.

C.    Corporate Professional Investors being:
a.    Trust corporations with trust assets of at least HK$40 million;
b.    Corporations or partnerships which have a portfolio of at least HK$8 million or total assets of at least HK$40 million;
c.    Corporations whose sole business is to hold investments and which are wholly owned by one or more of the following: (i) a trust corporation within (a) above; (ii) an Individual Professional Investor; (iii) a corporation or partnership within (b) above.

FinEX Asia Investment Limited’s products may only sold to Professional Investors.
Scan the QR code with your mobile phone, or choose the right one for your mobile phone system to download.
DOWNLOAD