LU International (Hong Kong), a subsidiary of Chinese fintech firm Lufax Holding, has rolled out an open robo-advisory platform for retail investors in the city, offering tailor-made asset allocation solutions through its artificial-intelligence investment consultant “Lucy”.

The company has also partnered with BNY Mellon Investment Management, which will provide outsourced chief investment officer services for the platform. Under the agreement, BNY Mellon will provide investment advice based on the risk profiles and investment restrictions defined by LU Hong Kong.

Powered by Lufax’s advanced technology, AI-backed Lucy will offer professional wealth management services and asset allocation solutions with a low investment threshold, taking into consideration the investor’s financial profile including income, financial objectives, and risk appetite. Advisory fees will also be waived for a limited period to allow users to experience the new fintech service with a user interface.

The platform seeks to eliminate the impact of emotional bias by offering a systematic and quantitative tool that ensures retail investors stick to a risk management strategy that meets their risk preference and investment targets, while reducing the time associated with face-to-face know-your-customer processes, especially for tech-savvy investors.

The rollout comes amid rising investor interest in robo-advisory services. According to a report by Statista, the total number of users of robo-advisory services in Hong Kong is expected to increase by 28% to 215,500 in 2021 and reach 368,800 by 2025. Total assets under management associated with investments made with the help of robo-advisors is forecast to more than triple to US$6.4 billion by 2025 from US$1.74 billion in 2021.

LU Hong Kong also aims to leverage its fintech capabilities to tap opportunities arising from the Wealth Management Connect scheme in the Greater Bay Area.