Financial digital advisory startup nets $10m to set up office in Singapore

Quantifeed’s management team / Photo credit: Quantifeed

As banks and financial institutions increasingly embrace digital tools, funds are flowing into startups that make and operate such technology. Hong Kong-based Quantifeed is the latest example of that, bagging US$10 million for its series B round.

The round was led by Taiwan’s Cathay Financial Holdings, whose subsidiary, Cathay United Bank, is a Quantifeed client. US-based asset management firm Legg Mason also participated.

Quantifeed makes wealth management and advisory software for financial institutions, online brokers, wealth managers, and so on. Its services include investment advice based on goals, risk, and theme, an analytics platform, and sales and customer engagement tools. It also has a team of quantitative analysts who calculate and monitor several markets and securities for valuable insights.

The funding will help the five-year old startup to expand its business and open a new office in Singapore. Quantifeed will also double down on research and development in data science, behavioral analytics, and more.

It currently provides digital advisory services to nine financial institutions across Asia and operates in Hong Kong, Malaysia, Singapore, Taiwan, and Australia.

Backed by large financials

Financial firms like banks and asset management companies are showing more interest in digital advisory startups like Quantifeed.

British asset management firm Schroders recently led a US$12 million series A round in Singapore-based WeInvest. Wealth and insurance technology company Finantix announced in March that it acquired Smartfolios, another Singaporean startup specializing in investment advisory through quantitative analytics. And Singapore-based Bambu raised an undisclosed amount last year in a round led by US holding company Franklin Templeton Investments.

Partnering with financial institutions is a great way for such startups to scale a lot faster, according to industry watchers.

Ernst & Young has observed that digital advisory services are becoming more popular with wealth clients like high-net-worth individuals. They’re familiar with such products and consider them a preferred channel for financial advice. Over 70 percent of high-net-worth individuals claimed they would consider using such tools.

“Fintech entrants are commoditizing the traditional asset allocation advice model, which is eroding pricing power and simultaneously raising the bar for better and faster service,” EY says.

Quantifeed previously raised US$4 million in a series A by Shanghai-based VC PGA Venture Partners.