DBS launches hybrid robo-advisory wealth management service

DBS has developed a hybrid human-robo investment service which is now available to customers in its native Singapore.

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DBS launches hybrid robo-advisory wealth management service

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DigiPortfolio will target beginner investors, offering access to a collection of between four and seven ETFs listed on SGX, the Singapore stock exchange, with a minimum investment of SGD 1000 or USD 1000 depending on which portfolio the customer chooses

DBS states that it is launching digiPortfolio with a view to democratising wealth management, harnessing robo-advisory technology to offer access to investment services traditionally only available to private banking clients.

Jeremy Soo, head of consumer banking group (Singapore), DBS Bank, states:  “With DBS digiPortfolio, we lowered the barriers to personal investing by creating a portfolio accessible to all customers, and that is watched over by our experienced investment specialists and adjusted to remain optimal in changing market conditions.

The launch has been welcomed by SGX, with head of analysis and research, Chan Kum Kong, saying: "Investors can instantly gain access to a diversified portfolio that provides exposure to various stock markets and asset classes - all with a low initial investment amount.."

As with the majority of robo-advisers, digiPortfolio offers portfolios based on the customer's risk appetite. These fall into three categories, from "Slow n steady", "Comfy cruisin'" to "Fast n furious".

Customers will be charged 0.75 per cent as a fee for portfolio construction and monitoring services.

DBS is the latest of a number of major banks to enter the robo-advisory market, thought it has proved a challenging move for others.

UBS launched a digital wealth platform, SmartWealth, in early 2017, but shut it down in August 2018.

In May of this year, Investec Group's investment platform, Click & Invest, went the same way, with the South African bank citing cost management as the cause. Click & Invest suffered operating losses of £12.8m in 2018, slightly less than £13.5m the year before. 

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