Targeting young and tech-savvy investors aged between 25 and 40 years old, OCBC Bank launched its algorithm-based investment service, RoboInvest.
The service, targeted at retail customers, requires a minimum investment of S$3,500. It will offer users 28 portfolios of equities and exchange traded funds across six markets, according to a report by Todayonline.
The automated digital investment tool will be based on themes such as technology, real estate investment trusts, fast-moving consumer goods companies, among others.
It will use algorithms to monitor each portfolio. When there are economic and market movements that impact the portfolio, the tool will periodically re-balance assets. Users will receive e-mail alerts prompting them to approve the rebalancing, so that they don’t have to constantly monitor their investments.
OCBC is reportedly the first bank in Southeast Asia to roll out such a service. Customers of the bank can set up a RoboInvest account via the bank’s Internet Banking platform.
The tool was jointly developed by OCBC with Singapore FinTech startup WeInvest, which was founded in 2015.
For managing assets up to S$50,000, the service fees for RoboInvest are 1.5 percent; whereas for assets more than S$50,000, fees are 1 percent.
This new service is set to change the way customers manage their investments, said Mr Aditya Gupta, the bank’s head of e-business in Singapore.
“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,” he added.