It is now official: Bank Leumi (TASE: LUMI) is entering the field of online investment management. The bank announced this evening that its board of directors had approved the start of activity by Videa, the company that will deal with online portfolio management.
The company has received the necessary regulatory approvals. Last June it received a portfolio management license from the Israel Securities Authority, and in April the Bank of Israel announced relaxations allowing an investment portfolio account to be opened without the customer presenting themselves at a bank branch. Bank Leumi awaits a permanent permit for opening online accounts and connecting customers, and estimates that Videa will get underway this October.
Videa will operate on the robo advice method. Investment management will be automatic, after the customer's risk profile and needs have been established. Online management will allow portfolio management for small customers with capital of only a few hundred thousand shekels who do not currently meet the generally accepted minimum threshold for portfolio managers. Operating online will also reduce costs, so that Leumi will be able to offer competitive fees. Besides management fees, Leumi will also gain from the sale and purchase of securities.
Robo advice is investment management using advanced technology based on constant monitoring of the markets combined with analysis of the customer's profile and his or her preferred risk level. This is a growing field, mainly for small customers with insufficient capital to justify using a traditional portfolio manager.
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2018
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