High street branch model shapes wealth creation journey
While Singapore’s emerging affluent consumers1 are known for their can-do attitude in managing nearly all aspects of their life, they are less certain about growing their wealth through investments2 , according to data from United Overseas Bank (UOB).
In fact, one in three UOB emerging affluent customers3 said that while they want to invest, they lack the confidence to do so despite the availability of investment-related information online. One in two customers also said they will supplement their online research with a visit to a branch to seek the advice of a relationship manager4 .
With these insights in hand, Ms Jacquelyn Tan, Head of Personal Financial Services Singapore, UOB, said UOB transformed the banking experience for emerging affluent customers by designing an omni-channel wealth creation journey. It integrates the Bank’s online and branch services to equip customers with the knowledge needed to make investment decisions confidently.
“In the last year, we surveyed more than 1,200 UOB customers to understand their preferences for investing. More than half of our emerging affluent consumers want to be able to speak with a financial advisor before making an investment decision5 . As such, we designed our wealth creation journey so our customers would know the range of investment options available to them and also enable us to engage with them at a deeper level. We want to help build the financial confidence of Singapore’s increasing number of emerging affluent consumers and to help them become more comfortable in achieving their wealth goals through investing.”
In 2018, there were more than 476,000 emerging affluent consumers in Singapore. The segment is expected to grow by 15 per cent by the end 20206 .
First Singapore bank to offer digital advisory service to the emerging affluent Core to UOB’s wealth creation journey is the launch of a new high street Wealth Banking branch model which complements the Bank’s online channels.
Upon entering the branch, customers receive a personalised experience through the use of Artificial intelligence (AI) and data analytics. UOB customers simply need to scan their identification card at the Self-Help Ticketing Kiosk. Within seconds, the customer receives information on relevant financial solutions that could be of interest to them, as well as an eQueue number to the customer’s mobile phones. A relationship manager also receives the same set of information to serve the customer and to answer any questions that the customer may have on these financial solutions during their meeting. The speed with which personalised content is sent to the customer is powered through AI and data analytics which the Bank uses to develop different customer profiles and corresponding suggestions
Relationship managers are also equipped with a purpose-built digital investment advisory platform to provide deeper insights into building a Risk-First7 investment portfolio to meet the customer’s wealth goals. Known as the UOB Portfolio Advisory Tools, this is the first such digital service offered specifically to emerging affluent consumers by a Singapore bank.
UOB has launched its first high street Wealth Banking branch model on Orchard Road. According to geospatial analysis conducted by the Bank, Orchard Road continues to be one of the most frequently visited destination for emerging affluent customers with close to 100,000 of them visiting the shopping belt in the first six months of 2018. The choice of Orchard Road as the location of the branch is also in line with the recent announcement by government agencies to rejuvenate and to revamp Orchard Road as a lifestyle destination.
“From our analysis, we found that our customers not only conducted their banking at locations where they live and work, but also when they shop, play and dine along Orchard Road. As such, we chose to launch our high street Wealth Banking branch at Orchard Road to be sure we remain close to them,” Ms Tan said.
The UOB Orchard branch is open on weekdays from 9.30 am to 4.30 pm and on Saturdays from 9.30 am to 4 pm.
About United Overseas Bank
United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s and AA- by both Standard & Poor’s and Fitch Ratings. In Asia, UOB operates through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, as well as branches and representative offices across the region.
1 Defined as customers aged between 25 years old and 44 years old with between $100,000 and $350,000 in investible assets
2 Based on UOB data as at May 2018
3 Based on findings from the Singapore Priority and Retail Banking Council survey conducted by RFi Research on behalf of UOB in April-June 2018 with 2,000 consumers
4 Source: UOB’s channel behaviour survey. This was conducted in November 2018 and polled 1,200 UOB customers in Singapore.
5 Source: UOB’s survey on channel behavior
6 Source: GlobalData’s The Global Wealth Market in 2017 report, which was published in October 2017 and covered 71 markets across six regions.
7 UOB’s Risk-First wealth advisory approach guides customers to ascertain their risk appetite and tolerance, and to meet their basic investment needs before making tactical investments that could be of a higher risk.
Source: United Overseas Bank