Amid growing interest in retail investing and the emergence of new trends in the investment landscape, trustworthiness and professionalism of advice has taken on greater importance among investors.

«Despite the growing usage of technology, when seeking personal financial advice, clients value face-to-face advice, albeit via technology. In fact, it has become even more important, despite many commentators predicting an increase in robo-advisories and digital financial services,» Gary Harvey, CEO, St. James’s Place Singapore, told finews.asia.

According to a recent survey by the wealth management firm, almost all Singaporeans (94 percent) said receiving face-to-face financial advice is important to them, while only 12 percent said that robo-advisory platforms are their preferred mode of advice.

Fintechs promising retail investors low-cost, diversified, passive investing have proliferated in recent years. According to Statista, assets under management among robo-advisors in Singapore reached $4.5 billion in 2020 (49.2 percent growth year-on-year), with 265,000 users (39.6 percent growth year-on-year).

Trusted Sources

«What many people forget, is that wealth management is first and foremostly a people-oriented business and that technology should serve as a tool to enhance, but not replace the trust and relationship-based advisory model,» Harvey said.

Four in five (81 percent) Singaporeans said they heavily prioritize seeking financial advice before making any major financial decisions and 70 percent would consider engaging a financial adviser to manage investments on their behalf, the survey said.

Over half (56 percent) of respondents ranked financial advisers among their top three sources of financial guidance, ahead of websites and blogs (49 percent), bankers (40 percent) and family (38 percent). The least sought-after sources of advice are financial advice books (25 percent), investment seminars (16 percent) and media (14 percent). 

Honesty Important

The top areas where Singaporeans said they need more financial advice are in investments (87 percent), property and mortgages (80 percent) and retirement planning (78 percent).

Respondents said honesty (63 percent) was the most important trait to consider when choosing a professional financial adviser to work with, with performance (34 percent) and fees (30 percent) taking a back seat.