More bank customers invest online amid Covid-19
Rise in clients using robo-advisory services and opening accounts for digital investing
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ST ILLUSTRATION: MANNY FRANCISCO
Bank customers are increasingly going online to invest in the wake of safe distancing measures that are keeping them out of branches.
DBS, OCBC and United Overseas Bank (UOB) noted that more people are opening accounts that they can use for digital investing, and are using robo-advisory services in greater numbers.
The monthly average of DBS Vickers and DBS digiPortfolio accounts opened in the first quarter of this year has more than tripled compared with last year, the bank said yesterday. Both accounts allow investing to be undertaken online.
More than 75 per cent of accounts that DBS customers opened in the first three months this year were multi-currency ones that allow users to undertake foreign exchange trades.
DBS also noted that the number of Central Provident Fund investment account openings increased by around 700 per cent between January and March compared with the same period last year, while Supplementary Retirement Scheme account openings almost doubled.
OCBC digital and innovation head Pranav Seth noted the increased use of the bank's online channels to make investments.
He said the value of unit trusts bought online between January and March this year was 2½ times higher compared with October to December last year.
"Similarly, investments using our RoboInvest service grew 60 per cent in the same period.
"We are progressively enabling our financial consultants to advise people remotely over phone and over video."
Branch staff are also calling customers to help with transactions and other procedures online so that they do not need to visit branches.
UOB noted on Sunday that the strongest demand has been for gold and unit trust products as investors seek defensive and diversified assets.
The number of gold purchase transactions through the bank's digital services was almost 20 times higher in March than the year before, while digital applications for unit trusts reached a record in the same month.
The bank has noted a 70 per cent increase in portfolio reviews since mid-March compared with those completed from January to that point. It has increased the investment insight reports it provides to keep customers informed given volatile market conditions.
