GlobalData Plc

Standard Chartered boosts Singapore mass affluent proposition

Standard Chartered has introduced a personalized investment tool for use by its relationship managers to advise mass affluent customers. The tool leverages big data and advanced analytics to build a customized risk profile of clients.

The launch of this service is likely to be well received by mass affluent consumers in Singapore as in line with the regional trend. In our Mass Affluent Analytics 2016 dashboard, 32% of consumers said they wanted automated investment portfolios based on their finances, highlighting a sizable gap in the market. The backdrop to this demand is that there is a strong investment culture among Singaporean mass affluents, with 69% saving to make financial investments compared to 48% of emerging affluents and 25% of retail consumers.

In addition to desired products and services they don’t currently have, Singaporean mass affluent customers are more inclined to value exclusivity over convenience according to our Megatrends framework. Standard Chartered’s relationship managers will now be able to explicitly offer that through greater awareness of their customers’ risk profiles using the bank’s own data. To make this service cost effective, each risk profile has asset allocation models attached to it based on the typical investment patterns of Singapore’s mass affluents.

Providers seeking to improve their mass affluent proposition should also consider a relatively inexpensive addition: a peer comparison tool. As per our 2016 Retail Banking Insight Survey, 29% of Singaporean mass affluents want access to a tool that can compare their finances/net worth with their peers.

There is growing evidence within our survey data, especially among the mass affluent segment, that consumers are developing a “help me help myself” attitude and judging providers and platforms on their ability to help them achieve their financial goals. Extracting more value out of existing assets, such as internal data, is likely to be the most competitive strategy in this current market environment.

By Sean Harrison, Retail Banking Analyst

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