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Robo-Advisory firm Bambu sees Huge Potential for FinTech in Asia
Hong Kong banks have been strongly pushing for the implementation of FinTech in recent years. Bambu, a Singapore startup working with Standard Chartered Bank, sees huge potential for Asia to lead the global advancement of FinTech. They aim to become the region’s leading Robo-Advisory firm within the next 3 to 5 years.
Founded in February last year, Bambu has been developing intelligent software and investment solutions to increase the efficiency of wealth management. The company demonstrated one of its software features at a FinTech event last month, where a client is only required to input the purpose of saving and initial investment sum to begin. The software then calculates the time period and financial plan required to achieve the client’s goals while adjusting for external factors such as inflation.
Huge Opportunity in Asia with only 10+ Platforms Available
As someone with experience in the financial industry, Founder and CEO Ned Phillips said in the interview that the main reason for choosing Asia as the target market is the huge demand for Robo-Advisors in the region. While there are over 100 Robo-Advisory firms in the US and over 50 in Europe, there are only between 10 to 20 such firms in Asia, reflecting a huge market opportunity.
Although China has always been the primary market in Asia, Bambu has yet to step into mainland China at its current stage. He explained that as a foreign firm, they will not enter the Chinese market hastily due to fierce competition in the local finance industry, choosing instead to select a mainland financial institution to work with as a partner.
“Starting a company is never easy, but now is the best time to do it.” Phillips explained that it isn’t easy to convince financial institutions to take up FinTech solutions. However, more banks all over the world are beginning to search for new technologies and hence are more open to trying out new solutions. This global push has no doubt been beneficial to Bambu.
Receiving Enquires from Banks nearly Everyday
In its 2 rounds of funding, Bambu has raised approximately USD$1.3 million in investments and hopes to raise a new round of USD$3.5 million soon. He revealed that the market demand for the latest round of funding has been intense, having reached the full target sum in a short period of time. Currently, they are receiving business enquiries from different banks nearly every day. The current situation is exceptionally optimistic for the company with an estimated revenue growth of 280% this year, reaching a total of USD$1.5 million.