UOB has launched “SimpleInvest” on its UOB Mighty banking app to make online investing simpler and more affordable.
Customers can choose from three options on its UOB Mighty app to meet investment objectives of liquidity, income or growth, with a minimum investment is $100.
Those who select liquidity can invest in UOBAM’s United SGD Money Market Fund, which seeks better returns than cash by investing in low-risk and liquid assets such as high quality bonds, government securities, money market instruments and bank deposits.
Investors seeking to generate regular income can choose the United Enhanced Income Select Fund, an income solution which invests in a spectrum of yielding assets.
The United Enhanced Growth Select Fund is for investors looking to take advantage of changing structural trends, such as healthcare, artificial intelligence, sustainability, that are reshaping economies and financial markets.
UOB has also partnered with UOB Asset Management to develop the Income and Growth solutions which invest in funds screened and selected by UOB. These funds are actively managed by asset managers such as Allianz, Fidelity International, JPMorgan Asset Management, Schroders and UBS Asset Management.
Jacquelyn Tan, head of group personal financial services, UOB, said that digital innovation is paving the way for more customers to access the banking services, and the bank will invest more than $200 million in digital innovation over the next three years.
“The pandemic was a tipping point for digital financial solutions as more UOB customers embraced the convenience of online channels to transact and to grow their wealth,” she said.
UOB aims to double its wealth fee income by 2026, which translates to a compound annual growth rate of more than 15% over the next five years, according to Tan.
According to the bank’s research, more than six in 10 consumers in Asean said they prefer online channels to apply for simple banking products. However, in Singapore alone where banking services are easily accessible, more than seven in 10 Singaporeans said they are not investing as much as they should and have surplus savings in their emergency fund.
“While the barriers to accessing digital financial solutions have lowered, our research has shown that consumers can feel overwhelmed by a plethora of products,” said Tan.
During the pilot phase, 75% of UOB customers purchased their first unit trust; a third have also gone on to set up regular investment plans, according to Tan.
“During the pilot, two in three customers were either millennials or those who parked money in a savings account and wanted to make their money work harder. UOB’s research shows that as these customers grow their nest egg, two in three prefer face-to-face wealth advisory for more complex financial transactions,” Tan said. UOB plans to roll out its simple suite of digital wealth solutions across the region progressively.