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Hi-tech next-gen change shaping Singapore WM
Growing investor use of digital channels, robo-advisory services, AI-guided decisions
The Asset 13 Jun 2024

Investors’ growing use of digital channels, adoption of robo-advisory services and positive attitude towards artificial intelligence (AI)-guided wealth management (WM) decision-making are key themes emerging in the Singapore WM industry, according to a recent survey.

As the industry competes to attract the next generation of investors, 91% of those surveyed under 35 years of age have increased their use of digital channels for WM purposes in the last two years, finds a survey of 500 Singaporeans with minimum investable assets of US$100,000 conducted by global management and technology consultancy Capco. This theme also holds true for a lower but still significant percentage (75%) of respondents aged 45 to 64 years.

In sharper contrast, 76% of respondents under 35 years old say they are comfortable with AI guiding their WM decisions compared with just 42% of respondents aged 45 to 64 years.

As well, many respondents under 35 years of age now use robo-advisory services – 40%, compared with 16% of respondents aged 45 to 64 years. Among those not currently using robo-advisory services, a higher proportion of this younger demographic say they are ‘very likely’ to do so in future (27% compared with 8%).

Other key survey findings are:

  • Three-quarters (74%) of respondents say they manage at least part of their wealth themselves, while 31% use wealth managers and financial advisors.
  • When using an investment or WM services remotely, the largest number of respondents (43%) prefer a hybrid model that combines digital self-service and human interaction.
  • Respondents use a wide range of resources to look for investment advice and ideas, particularly online research (69%).
  • Respondents under 35 years of age are particularly open to changing their wealth or asset management provider.

“Our new survey highlights that change is coming to Singapore’s WM industry,” says James Arnett, Capco’s managing partner for Asia-Pacific and the Middle East. “Providers and advisers are exploring how to strike an optimal balance between technology-powered innovation and a more traditional high-touch business model as they look to attract and retain the next generation of clients.”

Hayley Haupt, a company partner and its Asia-Pacific WM lead, adds: “We see that younger wealth clients have a greater predisposition to use digital channels and tools, including robo-advisers and AI, to engage with WM offerings. Standing still is no longer an option, and wealth managers need to ask themselves if they are ready to take full advantage of emerging technologies and modern data tools or architectures.”

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