Built to Last: The Power of Trust in Business

In the dynamic landscape of Southeast Asia’s fintech sector, one company stands out for its unwavering commitment to financial literacy– Endowus. As a pioneering force in wealth management, Singapore-based Endowus has transformed the investment experience for everyday individuals, addressing critical pain points with innovative solutions. This approach has not only fostered growth but also cemented Endowus’ reputation as a credible fintech company in this region. In this post, we will explore how Endowus built a foundation of trust through its unique strategies and the challenges it overcame on its growth journey.

From Startup to Trusted Partner

In traditional wealth management, there are many critical pain points for an everyday investor: high costs, hidden fees, financial illiteracy, and limited access to quality products. Recognising an opportunity, Endowus was created to solve these problems with a broader mission to tackle retirement adequacy, and support wealth creation for all.

Founded in 2017 and headquartered in Singapore, Endowus leverages digital technology and data-driven analytics, offering low-cost, personalised investment solutions tailored for Asian investors. Notably, Endowus is the first digital advisor in the region to span both private wealth and public pension accounts (such as CPF & SRS in Singapore) helping people manage their financial goals and addressing a unique market need.

The Endowus’ commitment to delivering true value is exemplified by its fee-only operating model, which stands out in both Singapore and Hong Kong with its 100% cashback on trailer fees or commissions. This approach enables Endowus to maintain independence and avoid conflicts of interest, serving as a trusted fiduciary advisor to its clients. By eliminating separate transaction, custodian, forex, or hidden platform fees, Endowus minimises costs and steers clear of misaligned incentives that could otherwise compromise returns and outcomes.

Not only did Endowus make wealth management simple for individuals, but the company is also assisting financial institutions and corporates in streamlining compliance for employee investments. Their business-to-business solution provides automated, customisable reporting of stock holdings, transactions, and year-end statements, tailored to each institution’s needs while addressing the complexities of regulatory requirements and restricted fund access. Among the clients who have benefited from this solution are Capital Group and Amundi in Singapore, and T. Rowe Price in Hong Kong.

Unlocking Wealth Management for All

The journey to democratizing wealth management is a long road and not without setbacks. Endowus encountered several challenges that tested its resilience and adaptability. One of the primary obstacles was the lack of financial literacy, which often leads to emotions-led investing. This behaviour can expose individuals to greater risks and undermine their long-term financial goals.

To address this, Endowus has consistently emphasised the importance of education, offering resources and tools that empower investors to make informed decisions. The company launched its community impact initiative Empower, to support underrepresented groups in achieving their financial goals.  By providing tailored investment solutions and educational resources, Endowus has worked to bridge the wealth gap and promote financial inclusion.

Another challenge faced is the stigma surrounding fintech platforms, particularly the misconception about trading and speculation. Many potential investors were hesitant to embrace digital platforms for wealth management, viewing them as risky and unproven. Endowus has worked diligently to dispel these misconceptions by highlighting the benefits of long-term, goal-based investing. Through clear communication and a focus on client-centric practices, the company has successfully educated consumers about the safety, security, and efficiency of its digital solutions.

The most challenging obstacle faced, was the diverse and complex regulatory and compliance requirements across the region. Navigating these complexities requires a deep understanding of local rules and commitment to following the highest standards of compliance. As Endowus expanded and entered new markets, it leveraged its strategic partnerships with governments and regulatory authorities to align its technological innovations with regulatory frameworks.

These initiatives not only contribute to the company’s overall impact but also align with its mission to create a more equitable financial landscape across Asia.

Singapore – A Catalyst for Growth

Southeast Asia, a rapidly growing economic powerhouse with a combined population of around 670 million people – twice the size of the United States, and a large tech-savvy middle-class workforce, presents significant opportunities for digital businesses. Driven by urbanisation, infrastructure spending, and sustainability shifts, the Association of Southeast Asian Nations (ASEAN) is projected to be the world’s fourth-largest economy by 2030.

Knight Frank estimates that the population of ultra-high-net worth individuals in markets like Singapore is approximately 4,206 in 2021, and this is projected to grow by 268%, reaching nearly 6,000 individuals by 2026. With strong growth potential and a pro-business environment, Singapore has become an ideal launchpad for companies like Endowus.

“With $2.5 trillion worth of intergenerational wealth projected to change hands in Asia by 2030, the region is ripe for digital innovation. Singapore’s robust and transparent regulatory environment, coupled with a fantastic talent pool of tech experts to investment professionals, makes it incredibly favourable for experimentation and technological adoption,” said Samuel Rhee, Chairman and Chief Investment Officer at Endowus.

“EDBI has been an invaluable partner, not only providing financial support but also offering strategic guidance and connecting us to a vast network of partners and communities that boost our growth in Asia.”

As the strategic investment arm of the Singapore Economic Development Board (EDB), EDBI supports progressive companies like Endowus to grow globally from Singapore by leveraging its extensive network and tailored value-creation approach, accelerating their growth journey.

One such example is a referral to AWWA, a registered charity that helps empower the disadvantaged. By bringing together like-minded industry groups, EDBI facilitated collaborations for its portfolio companies like Endowus, creating opportunities with corporate treasuries, family offices, enterprises, and government agencies to promote financial wellness and furthering business growth.

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