Smartly is cutting its operations because of the competition
Singaporean digital financial adviser Smartly is reducing the scale of its operations. The company is citing growing competition as the reason for the decision.
According to the announcement, published on the company’s website, it became too difficult to “maintain a high service standard”. Initially Smartly was planning to enhance its core services, yet the owner - VinaCapital Group - has decided to choose the closure instead.
The service has launched in 2015 and has been charging 1% management fee for accounts under US$10 000 and just 0.% for accounts over US$100 000. These fees are significantly lower than the sector’s average 2.5% annual rates.
The advisory market has been growing fast and attracted big digital companies, such as Grab. Traditional banks, such as Oversea-Chinese Banking Corporation and DBS, have also launched their own services. According to the forecast by Statista, the sector is going to grow to around US$2.6 billion by 2023.