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Banks offer new digital services to meet needs of consumers, from millennials to seniors

While financial technology (fintech) start-ups get more attention for their innovative and easy-to-use services, banks in Singapore have come up with new digital solutions, too.

To add extra value, some banks are going beyond financial services and supporting initiatives that matter to their customers.

To add extra value, some banks are going beyond financial services and supporting initiatives that matter to their customers.

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While financial technology (fintech) start-ups get more attention for their innovative and easy-to-use services, banks in Singapore have come up with new digital solutions, too.

Along with looking to fintechs, consumers can consider using these new services to get great benefits.

FASTER APPLICATIONS

Most banks here have offered a variety of digital services for a long time, with mobile applications that let you check balances and a lot more.

Now, banks are also catching up with fintechs by making it easier for most customers to open an account online or on an app.

This year, the extension of MyInfo — a service that enables Singaporeans and residents to manage their personal data for online transactions — allows customers to fill in online forms with government-verified data and avoid submitting documents.

Consumers who submit digital applications online using MyInfo can often set up their bank account digitally and almost instantly rather than having to go to a branch.

EVERYDAY SERVICES

As consumers do more online, banks are trying to entrench themselves more deeply into customers’ lives by setting up marketplaces and partnerships that offer customers a wide range of everyday services, through the bank.

At the DBS marketplace, for instance, customers may browse cars from dealers and save money on a car loan, buy or list their property, book flights and hotels, or switch their electricity provider.

OCBC and United Overseas Bank (UOB) have set up electricity provider marketplaces as well.

OCBC targets a narrower niche with its mumstruly.com marketplace, where mothers may look for baby essentials, medical services and expert advice.

To expand the range of services they offer, banks have also established partnerships.

Last year, for example, UOB started working with gaming company Razer to launch e-wallet Razer Pay in Singapore. The bank also partnered with artificial intelligence (AI) firm Personetics to use AI to send information to encourage customers to hit their financial goals.

Another tie-up was with Grab, to offer financial services to Grab's customers in the region and to give commuters privileges when they pay for Grab rides with their UOB card.

For DBS, it partnered with ride-hailing service Go-Jek to give drivers rebates when they pay for petrol at Esso stations.

And on the travel front, DBS tied up with Singapore Airlines and online booking platform Expedia, while UOB linked up with Expedia and Agoda.  

TARGETING SENIORS

Banks have found the growing population of seniors to be an attractive target as well and are offering new digital services to lock in these customers.

Maybank’s Passion Plus Programme, for instance, offers banking products with better savings rates and lifestyle perks for seniors as well as welcome vouchers when they sign up.  

OCBC’s Silver Years programme offers financial advisory and lifestyle initiatives for seniors and recently rolled out a free online service so consumers may prepare their own wills, within 10 minutes.

DIGITAL ADVICE

On the investment front, banks had been left behind by robo-advisers, which automatically select investments for customers and charge lower fees.

Towards the end of last year, however, OCBC became the first bank here to launch a robo-adviser, called OCBC RoboInvest. Investors may choose from more than two dozen portfolios of equities and exchange-traded funds (ETFs), which are built around themes such as technology, property or healthcare. RoboInvest uses algorithms to monitor portfolios, then alerts customers so they can approve re-balancing.

RoboInvest requires a minimum investment of S$3,500 and charges 0.88 per cent per year on the value of your investments. This fee higher than some fintechs yet lower than many unit trusts.

More recently, OCBC started offering annual financial portfolio reviews to customers using its Life Goals advisory tool. Customers may use it to set a goal, visualise their financial wealth gap, get products to close the gap and track their progress.

DBS bank will be following soon and by the end of the year will give more customers access to its DigiPortfolio, which has only been available to wealthier Treasures customers.

Once investors input information about their risk profile, they may use DigiPortfolio to put their money into combinations of equities, bonds, funds and ETFs.

DBS will charge a fee of 0.75 per cent per year for managing the money and has a minimum investment of just S$1,000.

More recently, Standard Chartered Bank launched LiveFX, a platform that allows retail clients to gain market insights as well as to make foreign-exchange conversions in real time and place limit orders anytime at their preferred exchange rates.

GOING BEYOND FINANCE

To add extra value, some banks are going beyond financial services and supporting initiatives that matter to their customers.

Standard Chartered Bank, for example, is working with partners to fight money laundering that fuels illegal wildlife trade.  

HSBC used its Beyond the Bricks 2019 survey to highlight how Singaporeans spend an average of 3.2 hours every week on property-related window shopping, compared to just over an hour reading bedtime stories to their children and less than an hour speaking to their parents — information families can use to prioritise their time better.

And Citi has rolled out its chatbot Bot SG, enabling customers to connect via Facebook Messenger and get fast replies to their questions.

While there is still more to be done, banks have picked up the pace and have rolled out these digital services as well as others. So it is worth checking to see if banks can offer what you need conveniently and cheaply.

Related topics

banks fintech digital services invest finance

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