Digital wealth manager Quantifeed enters the Japanese market to tap into the sizeable but underserved affluent market.
Quantifeed enters the Japanese market by invitation of the Tokyo Metropolitan Government as part of its strategy to transform the capital into a global financial center. It is among 50 other foreign asset managers and fintech firms select to join the scheme over a four-year period through 2020.
The firm will look to deliver its «wealthcare» solutions to support the digital wealth management needs of financial institutions in Japan’s «traditionally underserved and underinvested but highly promising mass-affluent market segment».
«Japan is a very important market, where we see strong impetus among financial institutions to enhance their digital wealth management offerings amid the push to broaden and improve the country’s investment universe and capabilities,» said Quantifeed co-founder and chief executive, Alex Ypsilanti.
Deposit-Heavy Market
Japan has traditionally struggled to incentivize investors beyond low-yielding options such as bank deposits. Tokyo’s new strategy includes efforts to improve financial literacy and awareness in order to drive flows into Japanese financial markets.
«Given Japanese retail investors’ focus on bank deposits, insurance and pension products, and their relatively low allocation to riskier assets such as equities, we see tremendous opportunity for Quantifeed to facilitate a shift to a broader and more diversified range of investment products,» Ypsilanti continued.
The 'Global Financial City: Tokyo’ Vision was first launched in 2017 and seeks to develop the city into a leading financial center by attracting foreign financial firms; developing Tokyo’s asset management and fintech industry, and nurturing talent.
