The founder of the latest entrant to Singapore’s robo-advisory space said that while competition is stiff, he is not fazed by the growing number of platforms among digital wealth managers.

«Having more players definitely helps, and it moves the entire industry forward,» Dhruv Arora said in an interview with finewss.asia about digital disruption in financial services. «But we're different as we have built the company with the customer first,» Arora added.

The platform offers a risk-managed passive investing approach, with no brokerage fees, and annual management fees of 0.4 to 0.65 percent, with no minimum investment or commitment period. Its three portfolios include one that covers the iEdge SREIT 20 Index, another for global stocks, and one that combines equity, bonds and commodity exchange-traded funds.

Building the App 

Arora was formerly a portfolio trader at UBS Hong Kong and later led the bank's ETF efforts in the region. While working at UBS, many people asked him for financial and investment advice, but he realized «problems were much more severe» than a lack of knowledge.

«Asia has experienced strong growth rates since the 2008 financial crisis, and savings here are three times that of Europe or North America, but interest rates here have been very low,» he explained.

Armed with technology know-how from almost three years as VP of product and growth at e-commerce startup Grofers, which he joined after seven years at the Swiss lender, Dhruv revisited the idea of Syfe in 2017. He secured $3.8 million in seed funding from U.K.-based venture capital firm Unbound and launched the platform in July 2019.

Lessons Learned

Arora said one of the biggest challenges in building Syfe was gaining trust from customers. One of the obstacles early on was addressing concerns of users had in putting large sums of money into an account with a new player, he said.

The other challenge was explaining to the layman keeping money in the bank was a losing proposition in the long run.  

«Focus on the customer has been a big driver for us from day one, and customer education has been a big drive for us from day one, and that has helped address these concerns and helped us forge some great partnerships, even as a relatively young platform,» Arora said.

Surge in Uptake

The Covid-19 pandemic has proved to be a boon for Syfe. In the last four months, the platform has quardrupled the number of users and assets placed into the platform.

«The past few months have been incredible. People are now understanding why its important to do something with your money,» he said.

Arora said its growth is evidence of a growing need for what the company is doing, and said Syfe has received a lot of interest from international players in the region. «You will see us expand to other geographies in the region as well in the next 6-12 months,» he said.

Advice for Investors

Arora advised those looking to explore digital wealth management platforms to stick to one or two solutions, and to look at their investment methodologies before committing to them. «Start with something you're comfortable with, and don't see things on a daily basis, which might lead to knee-jerk reactions,» he said.

«It’s always a good time to invest if you can. There's no need to cherry-pick and time the market,» he added.