DBS' new digital platform DigiPortfolio will be made available to all DBS customers by end of this year.
Currently, the service is only available the bank's Treasures members, who have deposits or investments of at least SGD 350,000. The entry amount will be lowered to SGD 1,000, according to a report by Todayonline.
DigiPortfolio automates investment processes and generates a diversified portfolio for DBS clients. There are three options available for risk levels. The platform allows investors to vary the proportion of equity, fixed income and cash invested into unit trusts selected by the bank's investment team.
This could make it easier for first-time investors, said Mr Lim Soon Chong, the regional head of investment products and advisory at DBS consumer banking group and wealth management.
He said that DBS had taken into consideration feedback from customers that “there is not enough time and there is not enough information for them to feel that they are empowered enough to invest”. There were other factors as well, including high entry fees and the inertia to try investing.
According to DBS’ customer data, one in ten Singaporeans made an investment transaction in the past 12 months. For affluent customers, such as Priority Banking customers, the proportion is nearly double. Mr Lim noted that relatively low rates are an “enigma”.
Launched on Monday, February 25, for Treasures members, DigiPortfolio features an automated process allowing investors to buy their portfolios with just a few clicks of the mouse and charges a single management fee.
It offers two options.
The Global Portfolio costs SGD1,000 to start, and is meant for diversified exposure to global markets. It is reviewed quarterly and rebalanced to align with market trends, said DBS. The management fee for this plan is 0.75 percent of the portfolio value each year.
Meanwhile, Global Portfolio Plus costs 10 times as much to start, and features active adjustments to capitalise on market movements. The fees are tiered at 0.75 to 0.85 per cent, depending on the portfolio value.
There is no lock-in period, so investors are free to withdraw their money whenever they want, Todayonline said.
DBS added that the service is different from other robo-advisers in the market, as its investment strategy is not “entirely passive and automated”.