An Asia-based online securities trading firm, , is launching what it says is the continent's first automated asset allocation service, aimed at putting sophisticated portfolio management into the grasp of the mass market.

The service is called 8 Now! It involves proprietary trading technology developed in-house that constructs and automatically rebalances portfolios of select exchange traded funds, including those from the world’s largest asset managers and ETF sponsors, to provide a customised and globally diversified portfolio. A distinctive feature, says the firm, is that the process is conducted at a fraction of what it costs to change portfolios in a traditional way.

8 Now! constructs portfolios based on a customer survey that assesses an individual’s investment time horizon and risk tolerance. The customer is presented with a personalised portfolio of up to 16 ETFs selected by Morningstar, the fund tracking business. The portfolio is diversified across geographies, asset classes and industry sectors, and is automatically rebalanced based on changing market conditions.

The development of such a service is an example of how the financial world is turning increasingly towards automated processes to cut down on time and cost – key issues as rising regulatory burdens have seen wealth managers increase investment minimums, leading to a so-called "advice gap" in countries such as the UK.

The development of e-commerce channels such as the newly floated Asian giant Alibaba (which has also invested in wealth management) is a sign of how the Asian region is already involved in fintec innovation of this type.

“The rising level of investible assets in Asia will increasingly be managed digitally online or on a smart phone, especially as a younger generation in the region takes responsibility for managing family wealth and assets,” said Mikaal Abdulla, 8 Securities’ chief executive and co-founder. “However, financial institutions have not evolved to meet the new demands of this next generation of investors. That’s the role we and other digital financial service providers hope to fill."

“Information technology is changing our lives, including our financial lives, by bringing mobility, simplicity and value to the way we save and invest,” said Mathias Helleu, 8 Securities’ executive chairman and co-founder.

The firm said automated investment and asset allocation services have grown in popularity in recent years in the US and Europe, claiming that similar services have accumulated over $14 billion in assets in a very short time. The amount of assets managed by automated services is projected to exceed $255 billion globally within five years, according to independent research, it said.

8 Securities held more than $750 million of client assets as at 31 December. It has licensed offices in Tokyo and Hong Kong.