Daewoo Securities Co. became the first securities firm in Korea to sign a tie-up agreement with a robo advisor company in the securities industry in Korea to explore a new business territory.
“Robo advisory” is a portmanteau of the words robot and advisor. It is a service to analyze Big Data with computers to help such business areas as accounting, asset management and planning, among others. Using Big Data is more dynamic and precise than what people can do and is also less expensive, which is a big help for general people to take care of financial matters.
Daewoo Securities signed up with eight robo advisor firms, including December and Co., and AIM, among others, and the securities firm is aiming to sign a similar agreement with a number of U.S. robo advisor firms with the service getting its start in the U.S. this year. The company is going after such large financial firms as Merrill Lynch and Charles Schwab in the U.S.
The company has a clear reason to sign cooperative agreements with them so they can have access to their vast experience in the robo advisor service, especially when market conditions change abruptly and they need measures to cope with emergency situations. Oh In-dae, head of the Smart Finance Department, said they need a diverse algorithm to cope with 100 different customer demands from 100 different customers.
He went on to say that they have to be ready with diverse investment patters of customers by connecting them with equally-diverse robo advisory firms. “We will be able to build the right ecological system of robo advisory services by taking advantage of the diverse experiences of those foreign securities firms through the cooperative tie-ups with them,” Oh said.
The securities firms set up the Global Investment Strategy Department to advise customers to investment in wide areas of the world and with more ease than before. “Global ETF” is the representative service that came out of the new global investment department. The department had its hand in the publication of the Global ETF Handbook to help its customers diversify their investment areas and targets, especially in the selection of ETFs listed on overseas stock markets through its sales guide and ways to select them, in particular for beginners. About 2,000 ETFs are being traded in U.S. securities exchanges offering more alternatives to investors than Korea’s stock exchanges, Daewoo Securities said.
KDB Daewoo Securities is a leading full-service investment firm offering a wide range of financial services in South Korea, such as securities trading and brokerage, underwriting, asset management, and international corporate finance. The company has a stronghold in the brokerage market and is a viable top IB player in the Korean market.
Since its establishment in September 1970, the company has grown to include 3,110 employees in 107 domestic and 9 overseas networks. Today, it ranks one of the nation’s top domestic brokers. The company also has its competitive advantage in underwriting, and is moving further to build a strong track record in principal investments etc. Also it sustains the highest level of net figures in the Korean Securities Industry. In close cooperation with KDB Financial Group affiliates, room remains for greater synergy ahead.
For 40 years of Korea's financial history, we have led the Korean securities market, creating maximum value for customer satisfaction and shareholder profit. Now, Daewoo Securities is taking another leap towards a greater future. Expanding our role from a leader in the securities industry to become a pioneer in financial services and a world-class leading securities firm, advancing the development of Korea's capital market, we are poised to start a new era of financial service.
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Yoo Dong-shik, right, holds a copy of the MOU with President Woo Dae-sung of Privee Service Korea after signing the agreement to cooperate in the Robo advisory service with Daewoo Securities becoming the first securities firm to provide the service in the securities community in Korea.
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