DBS implements first-in-Asia portfolio advisory tool for wealth clients
DBS Private Bank (PB) and Treasures Private Client (TPC) clients can now expect even more insightful and comprehensive client investment reviews going forward with the launch of the DBS Portfolio Advisory Enablement Tool (PAET).
The first-of-its-kind in Asia, PAET is a state-of-the-art analysis tool that can swiftly perform in-depth assessments of a client’s portfolio performance and risk exposures, to ultimately produce richer insights focused on needs of wealth clients: it can benchmark the client’s investments against his/her risk appetite and aims, provide portfolio and market performance, and show full risk exposures and asset allocation.
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 11 consecutive years from 2009 to 2019.
With PAET, which has been progressively implemented across DBS PB and TPC since late 2019, DBS’ relationship managers (RMs) can now quickly analyse the investment needs of their wealth clients, to offer even more personalised and relevant investment recommendations.
Traditional client investment reviews – where RMs and their wealth clients examine investment performance and refine strategies – often involve the use of client statements. The typical client statement provides a list of the client’s investments, with each investment presented as a single-line item stating its performance. This format leaves out valuable contextual information (i.e. how each investment’s performance fares in contrast to the wider portfolio or equivalent benchmarks, and where the overall portfolio risk exposures lie) and does not provide a complete picture of the portfolio.
Co-developed by DBS and wealth technology provider EdgeLab, PAET addresses this gap by running a portfolio-wide “health check” – assessing all investment holdings in the client’s portfolio to understand its overall performance, risk exposures and potential opportunities. It can:
• Risk-dissect all the client’s investment holdings, which may include a mix of asset types (i.e. single stocks and bonds, mutual funds, structured products and derivatives), and consolidate each holding’s risk exposure to provide a full view of the client’s portfolio risk
• Measure and analyse the performance of all the client’s investment holdings, both as individual holdings and collectively as a portfolio, and identify key performance drivers
• Provide estimated future cashflow projections for fixed income assets
The additional information allows RMs and clients to consider portfolio risks and returns in their entirety, so RMs can provide more contextualised and holistic advice for new investment opportunities.
A PAET report can be generated in less than five minutes, using just one-fifth of the time it takes to compile an equivalent report manually – improving RM productivity while eliminating the possibility for human error.
The integration of PAET into DBS’ systems also speaks to the bank’s world-leading technological capabilities – across the front, middle and back-end. In implementing PAET, DBS deployed a mix of public and private cloud solutions to ensure scalability that can match demand and support usage across multiple customer channels.
The bank is now moving on to phase two of PAET development, to further enhance quality of advice and client engagement. It will equip RMs with the ability to simulate investments into existing portfolios so wealth clients can view their potential value-add, as well as propose and construct new client portfolios.
Said Sim S Lim, Group Head of Consumer Banking and Wealth Management, DBS Bank, “Understanding what you own and how each investment impacts your portfolio is fundamental to making robust investment decisions. It is key to navigating today’s uncertain markets, where it is important to go back to basics, and not leave things to luck or chance. PAET allows us to efficiently deliver the insights RMs and clients need to make informed decisions based on real risks and performance drivers. It is testament to our capabilities in harnessing technology to transform the ‘usual way’ of doing things, empowering our RMs to provide richer, more detailed and contextualised investment advice that benefits clients for the long-term.”
PAET-generated reports will be provided as supplements to monthly client statements. All DBS PB and TPC RMs have undergone in-depth training to be able to fully harness insights from these reports, to ensure that conversations with clients become even more focused and productive.
The PAET solution speaks to DBS’ commitment to empowering clients with tailored insights for more informed decision-making in today’s increasingly volatile world. In January, the bank announced the adoption of MSCI ESG Ratings for its wealth management business, aimed at providing greater transparency and enabling clients to assess the environmental, social and governance (ESG) characteristics of their investment portfolios.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 28,000 staff, representing over 40 nationalities.