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Fintech firms target the rich Singapore with applications rich in features


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Private banking industry, long defined by exclusivity, discretion and personalized service manager, is in the intersection of Fintech companies who want a slice of fast -growing money management business for the rich.

They have newly been aggressive, favorating ads in the face with respect to partnerships with luxury brands or hanging out at high -society events to identify potential clients. Their business models include the use of artificial intelligence for the provision of the same services as private banks and charging lower fees, while having a small number of staff to provide “human touch” when necessary.

Since its launch in Singapore in October last year, US Fintech Arta Finance has been actively promoting its Ai app on social networks, claiming that they provide opportunities for the once reserved for Ultra rich in a faster and more economical way. The company even took its advertising to subway cells in some of the most famous areas of the city. “Can your private bank do that?” He is one of his phrases.

Art is a newcomer in Singapore and has just over a year in its home lawn. But his investors include lamps like former Google CEO Eric Schmidt and former Ralph Hames CEO.

One of the outlets of Art is a much lower investment threshold. Customers can access property that is not listed in an unfavorable position, including Hedge funds, with a minimum investment of only $ 25,000 in the product, compared to a typical minimum of 200,000 to $ 250,000 that have imposed many private banks.

Moomoo, a popular merchant and investment platform, also entered a act with a new hand that aimed at individuals of high net values ​​and their family offices based in Singapore. Moomoo has already disturbed the local stock industry with its mobile app and much lower commissions.

Moomoo Private Wealth serves clients with more than $ 1 million in investment, providing them with access to a wide range of financial assets, along with the services of relations managers and professional trade teams.

“We wanted to apply the same investment principle more accessible, using our platform with a technology enabled to supplement a personalized service that they expected high non -after -values,” said Moomoo Singapore CEO Gavin Chia in Advertisement earlier this month.

Arta and Moomoo are not the only players who want to establish a stronghold in Singapore, one of the main global centers for private banking, together with Switzerland and Hong Kong. According to the monetary authority of Singapore, there are about 40 companies in the city country that target different segments of customers.

McKinsey Management Counseling estimates that individuals of high and ultra -high net values In Asian-Pacific’s own property $ 21.7 trillion. High net values ​​individuals relate to those who have at least one million dollars of investment, while Ultra high individuals with net value are those with $ 50 million or more as defined by McKinsey.

Opportunity: lower level clients

Private banks provide access to alternative investments that are usually not available to retail investors. They include private capital, risk capital, hedge funds, loans issued by corporations and structured products.

Private banks can also help customers set up confidence and other structures for tax and inherited planning.

Chandra Das, an experienced Fintech entrepreneur with a background of investment management, believes that Fintech companies can effectively serve lower levels of private banking clients. However, shooting of the ultra -high net value segment is a significantly higher challenge.

“Those who have over $ 50 million in the management of management receive a completely differentiated service level,” Das explained, whose Robo-Savler Bento acquired Grab 2016. Das currently runs a telescope, a platform that aggregates the diverse users’ investment for a simpler reference and management.

While the Artani ads often dig in private banks, they target the wider market of “accredited investors” from Singapore and the Asian-Pacific region. In Singapore, an accredited investor status requires an annual revenue exceeding $ 300,000 (around $ 220,000) or net financial assets of more than $ 1 million, excluding the primary residence.

In contrast, many private banks want clients to keep at least $ 5 million in their accounts. According to News Reports, UBS, the world’s largest wealth manager, last year revealed that they plan to close thousands of smaller values ​​with about $ 2 million or less as part of the cleansing of less profitable relationships.

A challenge for growth

Fintech companies targeting high -value and some obstacles.

Zennon Kapron, an analyst in the Fintech industry, said the newcomers should exchanged quickly to justify their great advanced investments. “The challenge is that the margin in Robou is so low, that you need billions in AUM to be profitable.”

Telescope’s Das added successful acquisition of new customers may not result in large AUM influx. Although private banks can impose higher costs and compensation, most investors will continue to park most of their property with banks for greater mental peace.

While some private banks are lagging behind in technological abilities, others, like DBS Private Bank, have largely invested in AI and digitization, declining the edge that the newcomers claim to enjoy, DAS said. DBS said that his “figital” strategy for using the technology to enhance physical interactions face to face with clients and that nine of the 10 rich customers use his or her portfolio control app and the transporter throughout the hour.

Growing demand for technological solutions

Amanda Og, the manager of the Arta country for Singapore, said that there is a new generation of rich individuals who are more comfortable technology, which in turn resulted in growing demand for digital solutions to manage wealth.

“Many of our competitors have not completely accepted the shift towards integrating technology with personalized service,” she said.

Kuna Nallapan, Senior IT CEO and investor, said platforms like Moomoo and Schwabs provide top ability in areas such as internal and margin trading compared to the private banking application it also uses.

While Fintech companies are facing many challenges, they will force their appearance of a private banking industry on adjustment and innovation, industrial players and observers said. This competition will ultimately benefit from high -net investors, which now have more choices and access to more sophisticated and cost -effective solutions to manage their wealth.



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