DBS has rolled out an enhanced version of its digital investment advisory tool that provides retail investors with more specific product recommendations based on their risk profiles.

This comes as the majority of the bank's customers are still underinvested - and for some, remain uninvested - even as more people started investing in the first half of 2020 amid uncertainties as a result of Covid-19, said the lender in a press statement on Thursday. Only two in 10 retail customers took action to invest over the past 12 months.

DBS's new investment advisory feature - which sits within its digital financial planning tool NAV Planner - aims to help retail investors overcome inertia and make better investment decisions.

Previously, customers who used the investment advisory feature were only recommended broad product classes such as unit trusts or exchange-traded funds. Only one in 10 could successfully complete their investing journey because they "prefer a lot more hand-holding", said Evy Wee, DBS head of financial planning and personal investing.

On the new version, customers will now see specific product recommendations based on their individual risk profile, investment preferences and financial situation.

For example, instead of a general recommendation to buy unit trusts - of which there are thousands to choose from on the financial markets - the investment advisory feature is now able to shortlist specific funds.

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"We are augmenting the advice our customers receive with the expertise of our funds selection team, where we prioritise funds which are positively rated by the team. The additional expert guidance will help our customers overcome investment inertia, and for some who are already savvy investors, to make more informed investment decisions," said Ms Wee.

For a start, products will include all collective investment schemes, insurance solutions and the Asia/Global portfolios managed by DBS's robo-advisory platform, digiPortfolio.

Investors will also be able to filter their preferences. They can choose to see products which are available for CPFIS or SRS funding, for example, to make their holdings in these retirement schemes work harder.

According to the bank, almost half of its retail customers who are currently invested have invested via their retirement schemes.

"As more look to self-directed investing, it is important we equip them with the right information and intelligence digitally to construct their portfolios," said Ms Wee.

Amid market volatility, DBS has implemented additional safeguards. Those who obtain a "zero" risk profile will not receive investment recommendations. As these customers have stated that they are not willing to lose any capital, they will be advised to review insurance solutions instead.

Customers with negative cashflow will also be unable to gain access to the investment advisory feature. They will instead be provided steps to help turn their finances around, or be prompted to consolidate their holdings via SGFinDex.

To make the investing journey seamless, the bank has amalgamated the Customer Knowledge Assessment and Customer Account Review assessments stipulated under regulatory requirements in Singapore.

DBS said it has observed a positive response to the personalised nudges and recommendations offered by its NAV Planner. While retail customers invest on average S$3,000 a year, those who are guided by the NAV Planner were found to invest more than double that amount, at around S$7,500 a year. The bank created more than 30 million personalised nudges for users last year.