EpiK Protocol: Hello, Becky, it is our honor to invite you to take part in our AMA. Nice to meet you here. Becky!
All EPKers, here is our domain expert-Becky, a financial knowledge graph expert. So can you briefly introduce you first, Becky?
Becky: Sure. Hello, everyone, I am Becky, the executive director of BNP Paribas and I have a bachelor of Business Administration and an MBA from HEC. I once engaged in the Asian and European capital markets for more than 10 years and used to work in UBS and Rothschild Investment Bank in Hong Kong.
In the EpiK Protocol ecosystem, I will lead the EpiK Protocol community to build a financial knowledge graph and its application includes
- Intelligent risk scoring, anti-fraud modeling, anti-money laundering, and financial risk control of banks and loan companies.
- Intelligent stock selection, quantitative investment, main force tracking, value investment, technical analysis application of financial brokers.
- Smart product recommendation, customer relationship estrangement, potential customer discovery of financial institutions, etc.
That is all, thanks.
EpiK Protocol: So let’s proceed to the next segment, we have selected 5 questions and wait for your answers, can we?
Becky: Sure, cannot wait for it.
EpiK Protocol: Okay, here is the first question: How does the data collected by Robo-Advisor help people select and optimize their financial investments? Maybe few people know this and I also would like to know the answer.
Becky: Robo-Advisor refers to the internet technology providing clients with index fund-based asset allocation solutions and wealth management services based on investors’ risk appetite and financial situation, by using big data and quantitative models (mainly portfolio investment theory). It also performs automatic position tracking and dynamic adjustment according to market conditions.
Robo advisers will understand a client’s risk appetite, financial situation, and financial targets based on his/her age, income, expenses, occupation, personality traits, etc., as well as his/her answers to specific questions. Its asset allocation strategies often combine a variety of quantitative models that are used to calculate the allocation ratios to various asset classes. This not only enhances the effectiveness of the judgment on future market trends but also maximizes risk diversification.
As an example, for the stock-picking strategies that Robo-Advisor often deals with, we can build models from different perspectives such as market timing, sector rotation, investment styles and event-driven stock selection. When performing market timing, several quantitative timing models can be used to obtain daily stock position data. For sector rotation strategies, different sector rotation models can be applied to get a monthly sector allocation result. In addition, the AI can customize multiple quantitative styles and event-based stock-picking strategies to suit investor needs. By learning from historical experience to solve problems with regularities to conform to, internal connections between various events are discovered. When a black swan or grey rhinoceros event occurs, the AI can perform risk alerts and send signals. In this case, the product pool will automatically remove products related to that sector and a stop-loss alert will be issued.
EpiK Protocol: Impressive! Here we come to the second question: What are the advantages of Robo-Advisor compared to professional financial investment advisors? I think most people are concerned about this, why choose Ro-bo Advisor?
Becky: Good question. The cost of using Robo-Advisor is lower for the general investors (both in terms of time and financial costs). The threshold required to use Robo-Advisor is also lower. Professional financial investment advisors usually serve high net worth individuals, and their charges are more expensive. In the US, for example, professional financial investment advisors typically charge between 0.8% and 1.5%, while Robo-Advisor’s annual management fee is typically between 0.25% and 0.5%.
EpiK Protocol: WOW! The fee is really attractive! I am willing to have a try.
Becky: I have also talked with some domestic financial industry practitioners before and learned that China Merchants Bank’s Sunflower VIP users must have all their personal accounts in the same branch with assets of RMB 500,000 before they can enjoy professional financial and investment advice. The very popular Alipay wealth management, on the other hand, has a threshold as low as a few hundred RMB. For newcomers, Robo-Advisor can help you select the most suitable financial investment solution in the first instance.
EpiK Protocol: Super cool! A practical way to promote robo-advisor all over the world.
Becky: Thanks for your approval and hope we can promote it together.
EpiK Protocol: Sure! So let’s come to the third question, it is about your plan: As a domain expert in securities, do you plan to form a team or engage another team to develop an application, taking into account the data you already have and collected by Knowledge Mainland?
Becky: I will consider developing applications in the future. But at the current stage, I will earnestly complete the responsibilities and implement data-quality checking work as a domain expert. When the construction of the financial knowledge graph will come to an end, I will think about the cooperation of development and application.
EpiK Protocol: Yeah, I agree with you. Guys, hurry up to vote for Becky! I am really looking forward to the application. And click here to know how to vote for a domain expert for you.
Becky: haha, hope we can make a difference together.
EpiK Protocol: And then, the fourth question: Upon completion of Robo-Advisor’s knowledge graph annotation work, what will the official team apply the data to? Will there be any real-life applications?
Becky: Knowledge graph annotation is a long way to go and cannot be completed overnight. We will continuously update the question bank for the purpose of optimizing and updating Robo-Advisor’s knowledge graph. Once the knowledge graph annotation work is complete, we will share the data with companies that are or wish to be involved in our industry. These companies will be able to access our on-chain data by pledging EPKs. The on-chain data will be continuously updated, and these companies should also keep updating their data and models to ensure accuracy.
EpiK Protocol: Okay, then is the last question: Ms. Becky, what was the opportunity to cooperate with EpiK Protocol? After years of working in the financial sector, when did you come up with the idea of combining robo advising and blockchain technology?
Becky: I have been interested in the robo advising industry for a long time because of my work and professional habits. Since its birth, the industry has developed very well in the US and Europe. There are also some banks and companies in China that are currently engaged in robo advising, such as China Merchants Bank’s Machine Gene Investment and RoyalFlush’s iWencai, which I understand are also pretty good.
But whether overseas or domestically, 90% of the resources in the smart investment sector are actually held by oligopoly companies, because robo advisers are founded on massive amounts of data and complex computational models, which are often beyond the reach of small businesses. So when a friend introduced EpiK Protocol to me, we hit it off immediately. As a practitioner in the financial industry, I definitely hope to contribute more to this industry with my professional experience. By annotating the knowledge graph and uploading high-quality data to the chain, we can share the data with more companies who are interested in the robo advising industry.
EpiK Protocol: Hope we can make a difference together.
Becky: Sure, hope we can develop deeper cooperation.
EpiK Protocol: Thanks for your coming today and thanks for your kind answers.