- Requires an initial investment amount of just US $ 2,561
- Can choose from 28 portfolios of shares and listed-trading funds in six markets
OCBC Bank has become the first bank in Southeast Asia to launch a robo investment service, OCBC RoboInvest . Targeting young and technically savvy investors, it requires an initial investment of just S $ 3,500 (US $ 2,561
Customers can choose between 28 different portfolios of stock and listed trading funds in six markets, based on themes as technology. OCBC RoboInvest uses algorithms to automatically monitor each portfolio and periodically balance assets if there are economic and market movements affecting the portfolio.
It then warns customers via email so they can approve the rebalancing. This means that customers do not have to constantly monitor their investments and help optimize their portfolios.
Customers have access to an dashboard to see how their investments work and can easily retract or add them at any time.
Costs are a fraction of traditional investment management fees: Only 1.5% per year for assets under management up to S $ 50,000 (US $ 36,586) and 1% annually for assets managed in excess of S $ 50,000.
A pilot run from March to December 2017 confirmed OCBC Bank's hypothesis that investors in the ages of 25-40 years have no reservations covering "self-service" investments as long as the investment portfolios comply with their investment preferences and match their risk profiles.  The pilot offered two categories of investment portfolios to investors. The first category consisted of five portfolios consisting of Exchange Traded Funds (ETFs) and shares listed on Dow Jones and Nasdaq.
The second category consisted of four thematic baskets of shares listed on Dow Jones and Nasdaq. Themes were centered on technology games, fast-growing consumer goods and high-performing stocks.
The average amount invested by pilot users was $ 9,000. The average age of these investors was 35 years.
Utilizing customer insights from the pilot run, OCBC RoboInvest – developed with Singapore Fintech launch, WeInvest – has therefore increased the number of markets including Singapore, Australia, Great Britain, Europe and Hong Kong and the number of investment portfolios to 28.
End- Two-end customer investment travel has also been improved based on the lessons learned from the pilot run. The entire trip is fully automated and self-controlled.
OCBC Bank's Head of e-Business Singapore Aditya Gupta said: "With OCBC RoboInvest, we allow our customers to get started with their investments and increase their wealth in a simple, smart and self-directed way.
" This is a Another step in our ongoing journey to "democratize" asset management by delivering quality solutions to more investors with increased efficiency, convenience and personalization. We are confident that our customers will find this new digital investment platform very attractive and that it will radically change how customers engage in their investments. "
WeInvest's Managing Director Bhaskar Prabhakara said:" We are very pleased to cooperate with OCBC in launching a simplified digital wealth platform for its customers. Today, both beginners and discerning sophisticated investors are ready for self-directed investment trips, where the best solutions for inexpensive solutions are made available to them.
"We are also pleased that OCBC is the first bank in Southeast Asia to launch systematic investments through thematic and passive portfolios. The partnership strengthens the need for innovation and new models where market financial institutions can implement customer-focused digital solutions with a faster time in the market. "
OCBC Bank's partnership with WeInvest was forged by Fintech and Innovation, The Open Vault at OCBC. WeInvest was founded in 2015 and has its headquarters in Singapore.
It recently announced that it has increased $ 12 million for its series A Financing Round. Schroders, a London-based international asset management company, is its premier player and has acquired a minority stake in its start-up.
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