Poll findings indicate 61% of respondents in the city-state use a financial adviser – the highest for the countries covered in the Legg Mason Global Investment Survey, reports local newspaper the Straits Times.
This compared with a global average of 46% and an Asia excluding Japan regional average of 56%.
In Japan, only 15% of respondents said they currently use a financial adviser.
Robo-advisors on the rise
The Legg Mason poll also shows a high degree of openness to robo-advisers by Singaporeans investors.
The main drivers behind this interest are an ease of use – specifically the ability to make decisions and check performances at any time of the day – and lower charges.
Six out of 10 Singapore respondents reported being “somewhat” or “very” comfortable receiving financial counsel from a robo-adviser.
This is slightly above the global average of 57% but below the Asia (ex-Japan) average of 66%.
About 53% of respondents believe that robo-advisers can “completely” or “to some extent” replace financial advisers at their local bank, insurance company or broker.
Hybrid advice model
According to Ajay Dayal, investment director at Legg Mason Global Asset Management, the survey results point towards Singaporeans considering a hybrid advice model, where technology and online resources could complement advice from professionals.
“Here in Singapore, the results showed a strong preference for a ‘human-led and technology-supported’ approach to most areas of financial planning and execution,” Dayal said.
Smartphone nation
Singapore is well placed for growth in the online and mobile investment business. The country ranks third globally in mobile internet use, with 96% gaining access to the internet via a smartphone or tablet.
This figure is higher than the global average of 85% and in line with the Asia (ex-Japan) average of 95%.
There are caveats to bear in mind, however, such as the difference in mobile internet use across generations, with the proportion of baby boomers (born between the early 1940s and the early 1960s) using smartphones lagging behind that of millennials (people born between the early 1980s and the early 2000s).
According to Lennie Lim, managing director and regional head for Asia at Legg Mason, the survey’s findings should spur firms to bolster their digital offerings.
“Investors are increasingly turning to digital services to meet their investment needs, and financial service providers would do well to address this segment of users, while also paying attention to those users who value a personalised touch,” Lim said.
Last year, Legg Mason acquired robo-advisory service provider Financial Guard to complement its traditional investment services.
Survey
The Legg Mason Global Investment Survey has been taking the pulse of investors worldwide for the past five years.
This year’s survey reached 15,300 investors in 17 countries across Europe, Asia Pacific, Latin America and the US.
Of the total, 900 came from the US, 7,200 from Europe, 4,500 from Asia (including 900 from Singapore), 1,800 from Latin America and 900 from Australia, ensuring samples that are representative of the population of each country or region.
