We live in the tech era whereby many of our tasks can be done online. That includes managing our finances via a banking app.
Think about it, when was the last time you visited a branch of a bank? For me, it has been several years.
I have done reviews of DBS digibank app previously and it enables their customers to complete most of the financial transactions – transfer funds locally or overseas, pay bills, make cashless payments, buy investments and insurance products – it is a great bundling of financial services in one place.
Beyond fulfilling your traditional banking needs, the app also provides personalised digital insights and smart tools to help you spot financial gaps and grow your money.
You can enjoy even more powerful features in the app when you are a DBS Treasures customer with a Wealth Management Account. The differences are most notable in the investment aspect.
First, the range of investment products is wider. Apart from having access to more than 200 funds and the ability to buy and sell stocks in the same app, you get 2 more digiPortfolio options built with unit trusts.
Not only that, for those who qualify for Accredited Investor status, you get access to funds that are rated for Accredited Investors only, and you are able to invest in them directly via the app. This includes the three DBS in-house funds offered to Accredited Investors
- DBS I.D.E.A Fund – focus on tech disruptors
- CIO Barbell Income Fund – a multi-asset fund that aims to distribute regular income and long-term capital gains
- DBS ESG Focus Bond Fund – portfolio of at least 80 ESG bonds covered by DBS analysts
Second, you can also do forex trades in 9 different currencies with the same account rather than having a dedicated forex brokerage account. In addition, you can choose to place deposits in foreign currency fixed deposits such as USD, EUR, HKD and AUD to earn higher interest rates.
Third, you can set alerts for stocks and forex in the app, notifying you when they hit the price levels you are concerned with. Even if you don’t have time to set your own price thresholds, the app comes with automated alerts that proactively notify you if the prices of your stocks move up or down by at least 5%, or if an FX rate hits a level that DBS predicts would be interesting to you based on your past FX transactions.
Fourth, you get solid analysis from the investment team. The DBS Chief Investment Officer provides regular and timely updates, as well as insightful outlooks to help you position your portfolio, or even make comparisons with the CIO’s allocations. You will also get access to high quality equity research that is usually only available to institutions.
With such comprehensive features, one might start to think, who needs an advisor?
But we are not 100% rational
I love the convenience that technology brings. I highly value it in our time-starved lifestyles. We want to be able to spend more time on things we care about and not be bogged down by administrative matters. I am never going back to the days of visiting a branch.
But that doesn’t mean a human advisor is obsolete. I believe the human touch is most important when it comes to important life matters or during market downturns. An algorithm can provide logical recommendations, but only a human can render the emotional support and trust.
You’ve got to read Morgan Housel’s The Psychology of Money. It is full of gems and here’s a quote from the book that I resonate with,
“Few people make financial decisions purely with a spreadsheet. They make them at the dinner table, or in a company meeting. Places where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together into a narrative that works for you.”
We don’t make rational financial decisions all the time. The app won’t be able to empathize when you are worried about your position in Alibaba, or your concerns about apportioning your wealth to your children. An advisor can.
Moreover, there are insights which only a Relationship Manager (RM) can deliver. With greater clarity on your life preferences, situation and objectives, RMs can tailor a suitable solution for you to navigate through a crisis – whether it be minimising your exposure to volatility or maximising your gains by seizing opportunities.
So I went on a little quest – I got in touch with Austin Lai, an RM from DBS Treasures to find out the value they bring to their customers in this digital era.
Rock of Support During Bear Markets
Austin recounted that clients are more likely to consult him when there is higher uncertainty in the markets.
Clients can get emotional when there is a drastic drop in their portfolio value. This is when the RM needs to handle it well. He said it is important to hold his ground even if the client is acting in an irrational manner. This is to ensure the clients are not making rash decisions that may be detrimental to their investments in the long term.
It can be obvious to an RM that their clients are making emotional decisions, but the clients themselves don’t realise it because they are too involved to see things objectively. Having a third party helps to achieve that necessary clarity on their priorities. He shared that this is especially so for clients who had taken leverage and received margin calls. These clients would depend on their RM’s advice in a bid to safeguard their assets and to navigate safely out of the situation.
Handholding clients through the crisis will also allow an RM to build better rapport and trust with them for the years ahead.
And I know this well because as financial educators, we have met countless market corrections and crashes. These fearful times are when we need to step up to assure our students and give them the courage to stay invested for the long term. Otherwise, it is too easy to give up and sell at the lows.
It is during the worst of times that we crave and value the human touch. We can’t do it with machines, at least not yet.
Family Matters Too
Financial matters are family matters too.
Austin recounted an episode in which he met a walk-in customer at a DBS Treasures Centre. The client was stationed overseas in Europe, and had issues settling her late husband’s estate matters.
She had flown back to Singapore more than 5 times in a span of 4 years, and was still unable to get the estate distributed. There was always a reason for the process to break down, whether a missing probate or a missing document.
She was obviously frustrated about the process and had little hope that this would get settled.
Austin empathised with her situation and was determined to help her. It wasn’t easy to convince her to trust him to settle for her because she had tried for so long and was dejected by the bad experiences. And so, Austin made sure he took extra care in preparing the necessary documents to ensure she will never have to come back for the probate process again. He eventually succeeded in completing the process before she flew off. She was thankful and mentioned letting her children continue the banking relationship with DBS.
My friend has a similar story. He was stationed overseas but his mother got sick in Singapore. His RM didn’t just help with the insurance claims, but went the extra mile by accompanying his mother to the hospital appointments. He was very touched by the gesture and you can imagine the strong client-advisor relationship that was forged through this incident.
There are countless scenarios where empathy is needed to accomplish the tasks. Ultimately, RMs are in the business of helping their clients with their finances, and of relationship building.
This is why a human advisor is still necessary in this tech era.
App + Advisor = A Powerful Combination
We might not need a human advisor most of the time as apps are powerful enough to serve our financial needs. The convenience is unbeatable and I have no doubt the technology will enable us to do even more in the future.
But we cannot be overconfident and believe that we can achieve everything solely with technology. Clients need emotional support during market corrections, and empathy during family situations – human advisors can deliver these where technology falls short.
DBS acknowledges this. Besides developing a comprehensive digiBank app, DBS Treasures clients get access to relationship managers too. They are there whenever you need someone to talk to or resolve issues that cannot be done via an app.
Becoming a DBS Treasures client is open to Accredited Investors with minimally S$350,000 in investible assets.
Deposit Top Up Welcome Reward
DBS Treasures is running a deposit top up welcome reward for new clients who sign up from 1 July 2022 to 30 September 2022. Get up to S$13,900 when you start your wealth journey as an Accredited Investor with DBS Treasures.
Start managing your wealth with DBS Treasures today.
This article is sponsored by DBS but the opinions belong to the author.
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This article is for information only and should not be relied upon as financial advice. Any views, opinions or recommendation expressed in this article does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability. This article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
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