Going ‘phygital’ pays off: DBS customers become better savers and savvier investors

IN ITS efforts to give retail customers more control over their finances and investments, DBS seems to have found the answer in its hybrid approach of combining digital intelligence and human guidance.

Since 2020, the bank has been sending out AI-powered nudges via its digibank platform and deploying wealth planning managers (WPMs) to provide financial advisory and solutions that are tailored to individual customers.

This hybrid approach of physical and digital engagement – dubbed “phygital” – is “improving (our) customers’ personal finances”, says Calvin Ong, head of consumer banking group, DBS Singapore.

“More customers are staying invested and are doing so in a more disciplined manner, by diversifying appropriately and avoiding short-term decision-making, through the course of recent market volatility,” he adds.

DBS’ approach toward personalisation has enabled customers to make better financial and investment decisions – for example, those who engaged with the personalised nudges via the bank’s digital financial planner in 2024 saved twice as much, invested five times more and were nearly three times more insured than non-users.

Those who adopted a dollar-cost averaging approach – by investing a fixed amount each month via a regular savings plan – have grown steadily over the years, reaching a two-year high in September 2025.

Notably, the average ticket size for digiPortfolio purchases – DBS’ digital discretionary managed portfolio offering for retail investors – rose 50 per cent from January to September 2025, despite the bank lowering the minimum investment sum.

The shift toward self-managed investing through a hybrid model is gaining momentum as the bank doubles down on its commitment to make it more convenient for customers.

One strategy comes through DBS digiWealth, an enhanced all-in-one digital wealth platform that allows users to invest, insure, and plan for retirement seamlessly. Users can grow their net worth and build their financial well-being effortlessly by consolidating financial information across different government agencies and financial institutions via SGFinDex.

Aligned with DBS’ phygital strategy, customers can, through digiWealth, connect with a dedicated WPM to get advice while on the go.

DBS has also incentivised customers to invest and insure for the long term. The bank ran a partial-matching campaign this year, where customers who purchased insurance coverage received credits deposited directly into their Retirement Portfolio as an incentive to start building long-term wealth. Encouragingly, over 90 per cent have stayed invested since, with some making further top-ups.

Making investment accessible

The biggest challenge that retail investors face, as identified by the bank, is the barrier to action posed by the complexity of financial decisions. Ong elaborates: “Too many products, too much information, and the fear of making the wrong move can lead to doing nothing.”

This creates a kind of paralysis, which is further compounded by rising costs of living and uncertainty.

“That is why among first-time retail investors, DBS digiPortfolio continues to rank among the most popular due to its well-diversified and professionally constructed and managed portfolios,” says Ong.

“It is particularly suited for younger investors who are just starting out on their investment journey,” he adds.

One of the six portfolio options is SaveUp, a high-quality, short duration bond portfolio which offers diversification and low management fees. They also offer the Global and Asia portfolios, which gives access to low-cost global and Asia ETFs respectively.

The bank’s latest offering is the Retirement portfolio, which is a global investment portfolio optimised with a glidepath strategy. Ong says that the glidepath strategy is “one that offers higher equity participation when the investor is younger while lowering the risk through bonds every year until his/her retirement”.

When the portfolio was launched last year, younger customers – in their late 20s to 30s – accounted for half of total investors in the Retirement portfolio. Among them, 70 per cent went on to invest via a regular savings plan.

In fact, the number of Retirement portfolio investors has grown more than five-fold since the start of 2025. This signals a rising consciousness among younger investors to invest for the long term via a disciplined approach.

In addition to a variety of portfolio options, DBS has sought to make investing even more accessible to young investors. That is why the bank has lowered the minimum investment sum for three portfolios (Retirement, Income and Global Portfolio Plus) from S$1,000 to S$100.

The bank has also reduced recurring fund house fees by up to 50 per cent, through the introduction of rebate-free unit trust share classes within the SaveUp and Retirement portfolios.

“In doing so, customers benefit from the lowered cost of investing which potentially translates to greater long-term returns,” says Ong.

Future-proofing investors

“While volatility may be here to stay, what remains constant is DBS’ commitment to providing customers with the right advice to help them stay financially resilient, navigate evolving macroeconomic conditions and remain invested through market cycles,” says Ong.

“To help customers navigate increasing volatility, DBS seeks to provide a wider range of solutions that offer diversification across asset classes, geography coverage and risk levels. This allows customers to invest in ways that are resilient across market cycles, rather than dependent on particular outcomes,” Ong adds.

One such solution is the new DBS CIO Insights Funds – which is available on digiWealth – curated by the bank’s investment experts for customers who wish to invest for the long term.

These funds, which include the in-house DBS CIO Liquid+ Fund, provide diversified exposure across global markets and asset classes, offering both growth potential and stability across market cycles.

Moving forward, Ong notes that the bank also seeks to explore ways to broaden retail access to more sophisticated asset classes in a responsible manner.

This includes assessing how tokenised investment structures could further lower minimum investment sums or how retail investors could gain measured exposure to private assets and alternatives, subject to regulatory approval.

When an asset is “tokenised”, it means that it is converted to a digital asset that can be traded on the blockchain. Tokenised assets, a relatively new financial development, are expected to speed up transactions and enhance the liquidity of assets.

Ensuring retirement is within reach for Singaporeans

“The true measure of our success is whether our customers are trusting us and managing their money better with us,” Ong says.

He adds that beyond activity metrics, DBS is focusing on outcomes such as stronger emergency savings, more disciplined investment behaviour and adequate insurance coverage that pave the way toward a well-deserved retirement.

Allocating just 15 to 17 per cent of their salaries to investment, a DBS study showed that Gen Zs and millennials are the least invested among all pre-retirement groups, with over half of that allocated to fixed-income instruments.

“While low-risk, these generate lower returns that may not be sufficient to help grow and future-proof one’s wealth,” Ong adds.

“Our approach moving forward is to step up customer engagement toward taking investment actions through personalised nudges, clearer goal-based guidance, and offering access to human support when it matters, especially for this group of customers. Over time, we believe this will help them stay invested and become confident with their money,” Ong says.