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The private banking industry, which has been defined long ago through uniqueness, discretionary power and personal service by the directors of relationships, is at the intersection of technology companies that want a segment of rapid businesses of managing the wealthy money.
The new arrivals are aggressive, prefer ads in your face about partnerships with luxury brands or mixing in the events of high society to identify potential customers. Their business models include the use of artificial intelligence to provide the same services as private banks and shipping low fees, with a small number of employees to provide a “human touch” when needed.
Since its launch in Singapore in October last year, the United States has been the United States, the United States has promoted its AI’s application on social media, claiming that it provides the capabilities that were preserved for highly efficient bending. The company has taken its ads to the metro stations in some of the richer areas in the city. “Can your private bank do this?” It is one of the hunting phrases.
ARTA is the new expatriate to Singapore, and has more than a year’s experience in home grass. But its investors include the stars, such as the former CEO of Google Eric Schmidt and the CEO of EX-Us Ralph Hamers.
One of the ARTA points is the minimum investment is much lower. Customers can reach unlikely assets, including hedge boxes, with minimal investment of only $ 25,000 in a product, compared to $ 200,000 to $ 250,000 lower by many private banks.
Mooomoo, a commercial and famous investment platform, has also entered this work with a new arm targeting high -value individuals and their family offices in Singapore. Moomoo has already hindered the local breach industry through its mobile application and much low commissions.
MOMOO Private Wealth serves customers for more than a million dollars of investments by providing them by reaching a wide range of financial assets as well as the services of the Relations Manager and the Professional Trading Team.
“We wanted to apply the same principle of making investment easier, with benefit Announcement earlier this month.
ARTA and MOOMOO are not the only players looking to create a foothold in Singapore, one of the main international centers for private banking services alongside Switzerland and Hong Kong. According to the monetary authority in Singapore, there are about 40 wealth technology companies targeting different clips of customers in the city.
MCKINSEY Administrative Consulting Company estimates that individuals are of high value and promotion In the Asia Pacific region, it has the assets of 21.7 trillion dollars. Individuals of high value refers to those who have at least a million dollars in investments, while high net individuals are those who have $ 50 million or more as specified by MCKINSEY.
Opportunity: lower -class clients
Special banks provide access to alternative investments that are usually not available for retailers. These include private shares, investment capital, hedge funds and loans issued by companies and organized products.
Private banks can also help customers create confidence boxes and other structures for tax and old planning.
ChandRIMA DAS, a seasoned business pioneer with a background in investment management, believes that high -tech companies can effectively serve low levels for private banking customers. However, the seizure of the extreme extreme part of the network is a much greater challenge.
“Those who have more than $ 50 million of management assets get a completely distinguished level of service,” explained, DAS, who was obtained by Robo Bento Advisor through GRAB in 2016. DAS is currently leading Teleskop, a platform that brings together various user investors For simple reference and management.
While ARTA ads deal with frequent excavations in private banks, they target a broader market than “accredited investors” from Singapore, Asia and the Pacific. In Singapore, the approved investor status requires an annual income of more than $ 300,000 Singapore (about $ 220,000) or net financial assets exceeding one million Singapore dollars, with the exception of initial residence.
In contrast, many private banks want customers to maintain at least $ 5 million in their accounts. According to news reports, UBS, the world’s largest wealth manager, revealed last year plans to close thousands of accounts of smaller value by about $ 2 million or less as part of cleaning less profitable relationships.
Growth challenge
Fintech companies targeting high -value investors also face some obstacles.
Zenon Cabron, technology analyst, said that newcomers need to expand quickly to justify their huge investments. “The challenge is that the margin in Robo is very low, you need billions in AUM to be profitable.”
DAS added from Teleskop that a successful acquisition of new customers may not lead to large AUM flows. While private banks may impose higher fees and fees, most investors will continue to stop the largest part of their assets with banks for peace of mind.
While some private banks are behind technological capabilities, others such as the DBS private bank have invested extensively in artificial intelligence and digitization, which led to the dismantling of the edge that new arrivals claim to enjoy, according to DAS. DBS said that its “Phygage” strategy is to use technology to inflate its physical interactions face to face with customers, and that nine out of 10 of the wealthy customers use their application to monitor their wallets and deal around the clock.
The increasing demand for technology solutions
Amanda Ong, the rural director of Arta in Singapore, said there is a new generation of wealthy individuals who relax more than technology, which in turn led to the increasing demand for the first digital solutions for wealth management.
“Many of our competitors have not fully adopted the shift towards integrating technology with personal service,” she said.
Konna Nallaban, CEO and lead investor of information technology, said that platforms like Mooomoo and Schwabs provide superior capabilities in areas such as margin trading and margin compared to the private banking application that it also uses.
Industry players and observers said that while Fintech companies face many challenges, their appearance will force the private banking industry to adapt and innovation. This competition will ultimately benefit high -value investors, who now have more options and access to more advanced and cost -effective solutions to manage their wealth.