Digital Private Bank Hits Singapore
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Another digital wealth manager is poised to enter the Singapore market. How does the newest entrant seek to grab market share off rivals?
Kristal will launch in Singapore on Thursday, as reported. The city-state would be the wealth manager’s third market, after Hong Kong and India.
The platform allows investors to pick and choose investment strategies – so-called Kristals – among independent advisers and portfolio managers.
With the glut of digital efforts hitting the market, how is Kristal carving itself a niche?
«Sandbox» Shield
It is meant to service mass affluent clients who are not getting the service that they want today from their wealth managers and private bankers,» co-founder Asheesh Chanda said.
Kristal will operate under a shielded «sandbox» permit offered as a regulatory light-touch testing ground for start-ups which allows them to take a limited amount of client money.
DBS and Cyberport Ties
Kristal already manages an undisclosed amount of funds from retail and affluent clients, and says it will keep working on a machine-learning algorithm to feed its own strategies for its portfolios.
«We expect to exit the sandbox in nine months and then we have to decide what kind of licence we take,» Chanda said.
Kristal completed a «pre-accelerator» program backed by DBS last year, and is part of Cyberport’s incubation in Hong Kong this year.
Interactive Brokers, Saxo Bank
Clients can invest as little as S$1,000 in exchange-traded funds for equities, bonds, foreign exchange, options and futures.
Kristal’s fees hinge on investment strategies: bond portfolios are cheap, while an alternative investment-heavy one will cost more, Chanda said.
Kristal uses Interactive and Saxo Bank in Singapore and Hong Kong for execution and as asset custodians.
Questions & Answers
Q.What kind of clients is Kristal targeting in the Singapore market?
What kind of clients is Kristal targeting in the Singapore market?
Kristal aims to serve mass affluent clients who feel underserved by their current wealth managers and private bankers. The platform intends to provide these individuals with better service and investment opportunities.
Q.How will Kristal operate initially within Singapore's financial regulations?
How will Kristal operate initially within Singapore's financial regulations?
Kristal will initially operate under a shielded 'sandbox' permit, which is a regulatory light-touch testing ground for start-ups. This allows them to manage a limited amount of client money while developing their services.
Q.What is the minimum investment amount required for clients using Kristal?
What is the minimum investment amount required for clients using Kristal?
Clients can invest as little as S$1,000 through Kristal. This minimum allows access to exchange-traded funds covering various asset classes like equities, bonds, foreign exchange, options, and futures.
Q.Which established financial institutions does Kristal use for its operations?
Which established financial institutions does Kristal use for its operations?
Kristal uses Interactive Brokers and Saxo Bank in both Singapore and Hong Kong. These institutions provide execution services and act as asset custodians for Kristal's client investments.
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