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FinTechs belonging to this category offer advisory and broking services for investments usually via an internet platform.
Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment.
Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.
Apart from that some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investor with his decision-making.
There are also FinTech-advertising-services which advertise various financial services or products.
Introduction
Attitude of the country towards modern financial advisory and broking services
Although there is limited data on this, the attitudes towards financial advisory and broking services are generally positive and the market for robo-advisory services in Singapore is projected to grow. In particular, robo-advisory services are reportedly gaining popularity among Singaporeans under the age of 35.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Digital advisers are subject to the same regulatory framework applicable to traditional financial advisers under the Financial Advisers Act 2001 (FAA). If digital advisers offer a platform for the execution of capital markets products, the digital advisers are required to hold a Capital Markets Services licence for dealing in capital markets products under the Securities and Futures Act 2001 (SFA). Where digital advisers licensed under the FAA carry out SFA-regulated activities that are only incidental to their advisory services, they may be exempted from requiring licensing under the SFA. It is important to note that FAA-regulated digital advisers are not permitted to handle or have control over clients’ assets or moneys or operate an omnibus account for clients.
Additional comments regarding the legal situation for financial advisory and broking services, or adjacent services or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area
Financial advisory and broking services are still largely provided by traditional actors such as brokerages and banks, some of which have developed robo-advisory services to supplement their existing traditional services. Nonetheless, market experts have forecasted that the robo-advisor market size will double within the next twenty years, signaling the capacity for growth in Singapore.
Additional comments regarding the economic situation for financial advisory and broking services as well as adjacent services or what FinTech’s must be aware of in this business area
N/A