Fintech

OCBC Wants To Get Millennials Started On Investment With Its New Robo-Advisor

OCBC Bank on Thursday (23 August) became the first bank in Southeast Asia to launch a robo-investment service, OCBC RoboInvest.

The service targets young and tech-savvy investors aged between 25 to 40, and requires a minimum investment amount of S$3,500.

Customers can choose from 28 portfolios of equities and exchange traded funds across six markets, which are based on categories like technology, real estate, fast-moving-consumer-goods companies, property, healthcare, and F&B.

Algorithms monitor each portfolio automatically and re-balances assets periodically if there are economic and market movements that impact the portfolio.

Customers will receive email notifications to approve the re-balancing, so they do not need to constantly monitor their investments and it helps optimise their portfolios.

Customers can now access OCBC RoboInvest via the bank’s Internet Banking platform.

Choose ‘RoboINvest-ETFs & Equities’ under the ‘Investments & insurance’ menu option, then select the investment experience and vew and pick from the list of available portfolios.

Enter an investment amount, then set up an OCBC RoboInvest account.

Customers can see how investments are performing, and easily withdraw or add on to them any time via the dashboard.

OCBC charges 1.5% annually for assets under management of up to S$50,000, and 1% annually for assets under management of more than S$50,000.

The launch comes after a successful pilot run from March to December last year with a select group of investors.

OCBC found that investors between the ages of 25 to 40 are open to “embracing ‘self-service’ investing as long as the investment portfolios are in line with their investment preferences and match their risk profiles”.

Pilot users invested an average amount of USD$9,000 and their average age was 35 years old.

OCBC RoboInvest was developed in conjunction with WeInvest, a Singapore fintech startup that has just raised US$12 million in a Series A round.

Mr Aditya Gupta, OCBC Bank’s Head of E-Business Singapore, said, “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.”

Mr Bhaskar Prabhakara, Chief Executive Officer of WeInvest, added, “Today, both novice and discerning sophisticated investors are ready for self-directed investment journeys whereby best-in-class low-cost investment solutions are made available to them.”

Featured Image Credit: Human Resources Online

 

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