Part of ongoing efforts to democratise access to wealth management services.
DBS Bank has added an AI-powered financial and retirement planning tool NAV Planner, which will provide specific investment recommendations that are tailored to their investment profile.
The bank has adopted a multi-dimensional approach to help investors determine their investment profiles to ensure they meet regulatory requirements before investing amid market volatility.
This provides them additional peace of mind so that they can make more informed investment decisions to boost their personal finances.
To make the investing journey seamless, DBS has also streamlined several processes such as amalgamating the Customer Knowledge Assessment (CKA) and Customer Account Review (CAR) assessments a customer must take and pass, before being permitted to invest in more sophisticated products.
This approach, dubbed “Make Your Money Work Harder”, is available via NAV Planner on DBS digibank online and mobile banking app. It mirrors the offline consultation a customer would have today with the bank’s Wealth Planning Managers (WPMs), which safeguards the interests of investors as they grow their retirement nest egg.
Evy Wee head of financial planning and personal investing at DBS Bank said the ongoing efforts to democratise access to wealth management services not only enable more people to participate in the markets, but also help mitigate their risks.
“We found that only one in 10 customers could successfully complete their investment journey, because they actually prefer a lot more hand holding,” said Wee.
The digital investment advisor works when Customers will be prompted to first complete a five-question assessment in order to establish an accurate investment profile. Questions are focused on determining their financial objective(s), risk profile (which includes investment tenor and risk rating), investment preferences, and financial situation (if changes are expected in the short term).
The journey is also designed to help them complete the CKA and CAR knowledge assessments stipulated under regulatory requirements. Altogether, the process is designed to remove investment bias and guesswork for every investor.
Once that is complete, the “Make Your Money Work Harder” digital advisor will leverage new AI/ML models to short-list and recommend specific investment solutions across six broad product product classes available to retail customers today.
For a start, these products will include all Collective Investment Schemes, insurance solutions and the Asia/Global portfolios managed by DBS digiPortfolio. Investors will also be able to filter and check their preferences – they can choose to see products which are available for CPFIS or SRS funding so that they can make their holdings in these retirement schemes work harder.
As an additional safeguard, customers who obtain a ‘zero’ risk profile, will not receive investment recommendations. As these customers have stated that they are not willing to lose any capital, they will be advised to review insurance solutions instead.
Customers who are found by NAV Planner to have a negative cashflow will also not be able to gain access to the advisor. Instead, they will be provided steps to help turn their finances around or be prompted to consolidate their holdings via SGFinDex.
Similarly, DBS/POSB customers who are aged 70 and above are advised to consult with a WPM instead (either through bank branches island-wide or virtually via TeleAdvisory) as their needs would be more complex and fluid.
Tags: AI & Machine LearningDBS
