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Investment solutions to be made more accessible with collaboration

by • December 20, 2020 • FinTechComments (0)138

Singtel’s Dash and UOB Asset Management to make investment solutions more accessible with robo-advisory collaboration

Singtel and UOB Asset Management (UOBAM) have signed a Memorandum of Understanding (MOU) to offer dynamic and personalised robo-advisory investment solutions to individual investors through Singtel’s Dash mobile wallet.

The collaboration will see Singtel and UOBAM introduce a customised mobile robo-adviser for Dash customers. The robo-adviser, leveraging technology, data analysis and algorithm-based tools, will be able to provide advice on investment products personalised to the customer, making digital investments more accessible to consumers and empowering them to grow their wealth simply and smartly. This paves the way for Dash to make its foray into wealth management and furthers its goals of digital and financial inclusion by expanding the app’s range of mobile financial services offerings.

robo-advisory

Image credit: Harshil Shah (no changes were made to original image)

This differentiated robo-advisory service is the first collaboration of its kind between a non-banking mobile wallet and an established regional asset management firm.

Dash customers will be able to invest in a portfolio of Exchange Traded Funds (ETFs), managed funds and/or other asset classes within the Dash app. The investment portfolios offered through the robo-adviser will be highly personalised based on the customers’ risk profile, investment horizon and financial goals.

Robo-advisory services are growing in demand as they offer greater convenience and access to individual investors. The assets under management in Singapore for the robo-advisers segment is projected to grow by an annual rate of 25.3% from US$1.06 billion in 2020 to US$2.62 billion by 2024. Users in this segment are expected to increase from about 104,900 this year to 192,500 by 2024, an increase of over 83%.

  • Assets under management in the Robo-Advisors segment are projected to reach US$1,062m in 2020.
  • Assets under management are expected to show an annual growth rate (CAGR 2020-2024) of 25.3% resulting in a projected total amount of US$2,621m by 2024.
  • In the Robo-Advisors segment, the number of users is expected to amount to 192.5 thousand by 2024.
  • The average assets under management per user in the Robo-Advisors segment is expected to amount to US$10,121 in 2020.
  • From a global comparison perspective it is shown that the highest assets under management is reached in the United States (US$682,726m in 2020).

Mr Arthur Lang, CEO of Singtel’s International Group, said, “With increasing interest in online investing, we want to offer our customers exciting new investment products through the Dash app and we are delighted to partner UOBAM to offer a robo-advisory service. Tapping on UOBAM’s expertise in investment management, we aim to democratise access to digital investments for our customers who value simplicity, affordability and convenience when managing their finances on a digital platform. Through partnerships with key financial institutions, we will continue to boost the mobile financial offerings available on Dash and strengthen its position as an everyday all-in-one mobile app that supports customers’ connected lifestyles.”

Mr Thio Boon Kiat, CEO of UOBAM, said, “At UOBAM, we understand that while individual investors appreciate the simplicity and ease that robo-advisers have to offer, they are also focused on the credibility, security and long-term viability of such solutions. This is why we are pleased to work with Singtel to customise our UOBAM Invest mobile robo-adviser and to extend the service to Dash customers. Through our established investment expertise and solid track record, coupled with both companies’ strong heritage as homegrown firms with regional presence, we can help more individual investors to have greater peace of mind as they tap the benefits of our personalised robo-advisory service.”

The robo-adviser is expected to launch by the first half of 2021. Singtel and UOBAM will also explore opportunities to offer robo-advisory and other investment solutions through Singtel’s associates in the region, given the extensive presence of both companies in Asia including Indonesia and Thailand.

The Robo-Advisors segment contains private asset management providers who offer automated online portfolios in which private investors can choose investment volumes depending on their scope and private appetite for risk. Providers such as Wealthfront, Schwab Intelligent Portfolios and Betterment allow private and/or institutional investors to invest their money (starting at very small amounts) in pre-existing portfolios, which are automatically managed by individually configured algorithms.

The advantage of these services lies in the passive role of the investor, who may not want or cannot afford ongoing personal monitoring of their portfolio development. Such automated investment services also allow for attractive returns with low starting capital and without specific investment know-how, which is in contrast to classic investments offered by traditional banks. In the Robo-Advisors segment, financial figures show the assets under management of automated online portfolios.

Dash has expanded beyond payments and mobile remittance to include other financial and lifestyle services like restaurant bookings, travel insurance and most recently an insurance savings plan, Dash EasyEarn, which accumulated S$100M in assets under management within its first three months of launch. Dash, which counts over 1 million registered users, is available to everyone regardless of telco or banking relationship, and can be downloaded on any mobile platform. More information on Dash is available at www.dash.com.sg/.

Robo-advisory scope to include:

  • Automated online portfolio management of private assets
  • Financial advisory based on smart algorithms, lead investors or swarm intelligence (social trading)
  • Notable robo-advisors, e.g. Betterment, Wealthfront, Scalable Capital

Robo-Advisors are private asset management providers who offer automated online portfolios in which private investors can choose investment volumes depending on their scope and appetite for risk Providers such as Wealthfront, Schwab Intelligent Portfolios and Betterment allow private and/or institutional investors to invest their money in pre-existing portfolios which are automatically managed by individually configured algorithms.

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