Singapore, 5 August 2020 — Today, Endowus.com, one of Singapore’s leading MAS-licensed investment platforms and the first and only digital advisor for the Central Provident Fund (CPF), reveals some key insights after their fully-digital cash management offering, Cash Smart, launched on 1 July 2020.
Over the past month, Endowus has seen 7 in 10 Singaporean investors willing to invest in portfolios with higher expected yield of up to 2.2%. Cash Smart Enhanced, the higher-yield option, consists of a diversified portfolio of money market and high quality short duration bond funds, while Cash Smart Core still offers relatively high target yields between 1.1% – 1.3%, but with lower risk as compared with Cash Smart Enhanced.
Endowus’ Cash Smart also attracted over 35.7% of all new investors to the platform, with 20% of existing customers further increasing their investments to also include Cash Smart. Overall, Cash Smart made up 47% of all investments on the Endowus platform in the past month, with new Cash Smart investors the most actively transacting.
Samuel Rhee, Chairman and Chief Investment Officer at Endowus, said: “Even in the midst of a volatile economy, we see that customers are still looking for means to invest and grow their money. The customer investment behaviour we have observed over the past month is truly reflective of the Cash Management Survey we had conducted earlier this year: Singaporeans want high yields but no lock-ups. Our success with Cash Smart shows that Singaporeans, now more than ever, want to manage their finances proactively — and that they no longer need to solely depend on traditional banks to achieve this. Endowus Cash Smart checks all the right boxes, and is the best new way to invest cash.”
This comes as major banks in Singapore announced that interest rates in flagship savings accounts will be cut due to the ongoing Covid-19 pandemic. Savings accounts with higher yields are typically tiered, so different interest rates apply on different cash balances, and also requires customers to meet certain criteria, such as depositing their monthly salary or meeting a minimum credit card spend. Other products such as fixed deposits, offer slightly higher interest rates, but require locking up the cash for a pre-defined period of time. Endowus Cash Smart does away with all that, allowing Singaporeans to grow their cash while still remaining liquid, with no lock-ups, daily accrual on interest, and withdrawals at any time.
The Endowus Cash Management survey revealed that respondents cited the primary motivators of liquidity (62%), higher interest rates (55%), and capital preservation (32%) as their top three motivators when considering the method of managing their cash. In the same survey, respondents also mentioned that the top three factors for choosing a cash management solution would be low fees (76%), no lock-up (73%) and higher yields (63%).
Gregory Van, Founding Partner of Endowus, said: “Wealth management should be fuss-free, transparent, and accessible to everyone. With the prolonged impact of the ongoing health crisis, we have listened to our clients to design solutions that make Singaporeans’ lives easier today, and better tomorrow and into the future. Cash Smart is an example of this, allowing Singaporeans to grow their wealth with access to great products, flexibility of no lock ups, and security with assets held in their own name at Endowus and UOB Kay Hian, Singapore’s largest broker.”
Endowus Cash Smart gives users a fully digital, seamless sign-up experience using MyInfo within minutes from the comfort and safety of their own homes.