1Long co-founder and CEO Michael Do
1Long is an AI-powered wealth management platform that enables individuals in Vietnam to start investing with as little as 10,000 VND (approximately less than US$1). The platform allows daily transfers and withdrawals without fees, thus removing barriers to accessing funds.
Founded by a team of former investment banking and Y Combinator-backed veterans, 1Long last month bagged US$500,000 pre-seed funding from Iterative, Monk’s Hill Ventures, R2VP, and Orionis Capital.
In this interview, co-founder and CEO Michael Do discusses the product, the USP, and its new diversification plans.
Edited excerpts:
What specific gaps or challenges did 1Long see in the Vietnamese financial landscape that 1Long aims to address?
There is an urge to speculate on asset classes rather than hold long-term without realising that the more you trade, the more likely you are to lose because speculative assets have high bid-ask spreads before fees — meaning you’re at a loss the second you transact.
Furthermore, access to fixed-income assets like corporate bonds is reserved for professional investors yet offers great risk-adjusted returns. Vietnam and other countries in the region are growing comfortably into the middle class; it will be just as much about capital preservation as capital growth.
None of the current investment apps properly addresses this evolving customer demand.
With the rise of mobile trading apps, how does 1Long differentiate itself and promote a “relaxed, non-trading-centric approach” to wealth management?
We don’t offer trading. We focus on a subscription approach that incentivises long-term capital management over a transaction-value-based model that stimulates dopamine-charged decision-making.
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Money is a means to an end, and we prefer that our customers focus on the end rather than the means of accumulating it. We offer tools and value-added services that help customers achieve their goals most efficiently.
Furthermore, we’re labelling and segmenting customers to be fed into an AI-powered CRM that has omnichannel interactions. With tech, we can always be there for our customers.
What specific efforts are being made to democratise wealth building and make 1Long accessible to a broader range of Vietnamese individuals, especially those starting with minimal funds?
For our initial products, we allow regular retail customers to access corporate bond yields. To be able to buy bonds, retail investors must have a minimum of about ~US$50,000 in assets and apply for professional investor status.
Furthermore, we democratise access to these yields for as low as US$1 by aggregating and rationalising fractionalising the lot requirement.
Lastly, our philosophy is to treat our customers like educated limited fund partners. We frequently update their portfolio holdings and our investment decisions while sharing resources that an investor relations department typically offers.
Beyond savings products, what excites you most about expanding 1Long into investment products and value-added services?
We approached savings first because it’s the most ubiquitous customer need, and currently, Vietnam banks have over US$200 billion in inflexible termed deposits. At the same time, some of the largest mutual funds and ETFs here don’t surpass US$$50 million AUM.
There’s a big disconnect here as savings and mutual funds are passive investments, yet banks almost exclusively own the AUM.
We’re up for the challenge of figuring out why, and we’re excited about being able to support the financial products ecosystem with lead generation to build a more integrated solution set for all customers, no matter their age or wealth level.
Can you describe how 1Long plans to reinvest in charitable and green initiatives, demonstrating its commitment to social impact alongside financial success?
We want to be a force for good and believe that financial institutions should spend much time with the community to understand their needs.
Our first initiative was to work with Room to Read (a nonprofit for children’s literacy & girls’ education programmes at work) to donate to their efforts to promote literacy among children. We received great feedback and over 400 installs from the campaign.
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Concurrently, we are discussing with universities and other organisations for collaborations we can do to promote responsible savings and investments. We are okay with losing some margin on our profit to support sustainability projects with preferential rates, and our customers would be okay with both.
How does 1Long plan to cater to both domestic and international investors interested in the Vietnamese market?
Currently, our focus is only on domestic investors. We believe the domestic market here is substantial and growing, so “rising tides will lift all boats.”
We plan to be fully regulated soon so we can properly serve domestic and international investors. Once that is the case, we see the story of Vietnam is not hard to sell to international investors, including the four million overseas Vietnamese. As a SEA turtle myself, I am confident 1Long can convince others to take the journey home for an opportunity.
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The post ‘We want to treat our customers like educated LPs of a fund’: Michael Do of wealthtech startup 1Long appeared first on e27.