OCBC Bank rolled out its algorithm-based investment service, RoboInvest, to its retail customers, targeting young and tech-savvy investors aged between 25 and 40 years old.
The service, which requires a minimum investment of S$3,500, will offer users 28 portfolios of equities and exchange traded funds across six markets, and will be based on themes like technology, real estate investment trusts, fast-moving consumer goods companies, among others.
The automated digital investment tool will use algorithms to monitor each portfolio and periodically re-balance assets if there are economic and market movements that impact the portfolio, said the OCBC spokesperson.
It also provides e-mail alerts so that users can approve the rebalancing, cutting out the need for them to constantly monitor their investments, added the spokesperson.
Service fees for RoboInvest is 1.5 per cent a year for managing assets up to S$50,000 or 1 per cent for assets more than S$50,000.
Touted to be the first bank in South-east Asia to roll out such a service, the official roll-out of OCBC RoboInvest follows a pilot run between March and December last year with a selected group of the bank’s customers.
Based on the pilot, the bank found that investors aged between 25 to 40 years old had “no reservations embracing ‘self-service’ investing as long as the investment portfolios are in line with their investment preferences and match their risk profiles”.
The bank declined to reveal figures and would only say that the “majority” of people who used the service during the pilot run fell within the 25 to 40 age bracket. The average age and investment amount was 35 years old, and US$9,000 (S$12,330) respectively.
OCBC customers can set up a RoboInvest account via the bank’s Internet Banking platform.
OCBC RoboInvest was jointly developed with Singapore FinTech startup WeInvest, which was founded in 2015.
Mr Aditya Gupta, the bank’s head of e-business in Singapore, said the new service will change the way customers manage their investments.
“This is another step in our ongoing journey to ‘democratise’ wealth management by delivering quality solutions to more investors with greater efficiency, convenience and personalisation,” he added
Re-dessiminated by The Asian Banker from Todayonline.com