UOB invests $200m in digital innovation, aims to double wealth fee income by 2025

The bank has launched SimpleInvest, where clients can begin investing for as low as $100.

UOB is investing more than $200m in digital innovation over the next three years.

The bank also outlined plans to double its wealth fee income by 2026, or a compound annual growth rate of 15% over the next 5 years, through offering services that personalise the wealth management services of each customer.

Jacquelyn Tan, head of group personal financial services in UOB, noted that digital innovation is paving the way for more customers to access the banking solutions they need for their different life stages.

“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. We have tapped this permanent change to expand our digital wealth offering to provide simple, self-serve products and solutions through UOB Mighty,” Tan said.

In line with these goals, UOB is expanding its digital wealth management solutions through the launch of SimpleInvest, with the aim of serving ASEAN’s growing population of increasingly affluent yet underserved consumers.

For as little as $100, SimpleInvest users can then choose from three solutions in UOB’s Mighty app that fulfill the investment objectives of liquidity, income, or growth.

Initial feedback to SimpleInvest had been positive, with 75% of UOB customers purchasing their first unit trust during the pilot phase. One in three customers has gone on to set up regular investment plans, UOB said.

Customers who choose 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.

UOB has also partnered with UOB asset management to develop the income and growth solutions, both of which invest in funds screened and selected by the bank. These funds are actively managed by renowned international asset managers such as Allianz, Fidelity International, JPMorgan Asset Management, Schroders and UBS Asset Management and manage a total of almost US$10t in assets globally.

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. This fund is for those looking to take advantage of changing structural trends, such as healthcare, artificial intelligence, sustainability, that are reshaping economies and financial markets, the bank said.

SimpleInvest follows the launch of another “simple” branded UOB product, SimpleInsure, in December 2020.  SimpleInsure enables the bank’s customers to apply for PRUCancer 360 through UOB Mighty. PRUCancer 360 is a cancer insurance plan which provides 100% payout for all cancer stages.