NAV – Your Financial GPS is part of a new financial planning initiative by DBS aimed at helping customers navigate through life’s changes, uncertainties and opportunities.
Industry competition
DBS’s offering will bring it into direct conflict with financial advisers who are still getting to grips with changes to how they can charge clients for advice.
Singapore’s Financial Advisory Industry Review (Fair) implemented a 55% cap of first-year commissions. The remaining 45% is paid over the next five years or the remaining premium payment years, whichever is shorter.
The cap was due to come into force in January 2017 but is understood to have suffered some delay. Its full impact on the industry is not yet known.
Financial navigation
Those aged 20-35 can receive personalised financial planning sessions at the NAV Hub office in the central business district, where they can learn more about their current financial health, as well as understand their financial goals and how to achieve them.
The sessions are conducted independent of sales and no financial products will be sold.
They can also obtain financial planning tips from the NAV online space and attend monthly financial planning classes at the NAV Hub conducted by industry experts.
Research
To understand the aspirations and challenges faced by young adults in Singapore, DBS conducted research into its customers aged 20-35. It found:
- More than 50% of customers do not plan and do not know how to plan;
- 60% of young adults want to manage their money better to help them achieve their future goals;
- Their top three financial goals are: 1) Buying a home; 2) Growing their money; 3) Self-development (furthering studies, skills upgrade etc); and,
- The majority of young adults who plan for financial goals do not know the estimated target amount needed to achieve each goal.
Beneficiaries
DBS identified two groups of customers who it believes will benefit most from NAV – Your Financial GPS.
Young adults who are novices in financial planning and need help to get started and people who may have taken some actions towards their goals and require further guidance.
Brandon Lam, DBS’s Singapore head of financial planning group, said: “We designed NAV – Your Financial GPS as an interactive concept for young adults to fully understand their financial health and make concrete plans to work towards their financial goals.
“These could be conversations on buying their first homes, getting married, raising children, growing their money or retiring comfortably.
“The NAV Hub provides a relaxed environment for these conversations to take place and we are committed to be their trusted partner on their financial planning journeys.”
