Ned Phillips, co-founder and CEO of Singapore-based Bambu, discusses the state of robo-advisory business in Asia.
Based in Singapore, Bambu is one of several leading B2B wealthtechs, designing A.I.-led investment solutions for financial institutions to serve to their consumers.
Phillips speaks with DigFin‘s Jame DiBiasio about growth in the business, its impact on banks’ traditional role as distributors of investment products, and how it is changing the way asset management companies see their role.
He concludes with why robo needs to stay boring even if that means short-term underperformance for the industry.
- Timecodes:
- 0:00 – Ned Phillips, Bambu
- 1:10 – State of wealthtech, AUM still small but gaining momentum
- 4:38 – Why banks are worried about robo’s business model, pace of business, customer experience
- 7:31 – Digitizing wealth management, fees versus customer retention
- 8:51 – What are the long-term advantages of banks and asset managers, how do they remain relevant
- 11:30 – Asset managers acquiring robo-advisors, and going direct to consumers
- 13:54 – Retirement-focused products stay boring, and use of data to understand customers
- 16:38 – Embedded finance, data sharing, and robo, products and incentives to reward long-term investing
- 18:50 – Changing long-term investing behavior, what are the appropriate goals and how to reward meeting them
- 20:55 – Robo-advisors versus mobile brokers, the dangers of gamification, and why robo businesses may disappoint
- 24:33 – The endurance of Asia’s bank-distribution model for funds