SINGAPORE — OCBC Bank is piloting a robo-advisory service for investors to help them monitor and manage their investments, using an algorithm-based formula. The online platform will offer clients direct advice on balancing investment portfolios without having to go through a relationship manager.
OCBC Bank will initially offer the scheme to accredited investors based in Singapore during the pilot. Under Singapore law, an individual accredited investor is a person who has more than S$2 million in personal assets including property, or made at least S$300,000 of income in the preceding 12 months.
Head of E-Business for Singapore at OCBC Bank, Mr Aditya Gupta, said: “Robo-advisory is no longer just a buzzword in the Fintech space. With this initiative, we will bring simple, fuss-free and high-quality advice and investing to our time-starved customers. This is another step towards the ‘democratisation’ of wealth management – making wealth management simpler and more accessible for investors.”
The scheme, which is provided in partnership with WelInvest, a Singapore-based fintech firm, tracks five diversified portfolio of stocks and exchange traded funds listed on the Dow Jones and Nasdaq. Customers first complete a questionnaire, which determines their risk profile and investment goals. Based on this information, one of the five portfolios will be recommended and tracked.
The robo-adviser will then offer investment advice according to changes in economic and market conditions. Investors can choose to be alerted via SMS or email with proposals to rebalance their portfolio.
Savvy investors can also opt to invest in a thematic basket of stocks listed on the Dow Jones or Nasdaq, such as stocks of tech companies, fast-moving consumer goods, or leading Dow Jones companies.