During the earlier part of 2020, Grab announced an acquisition of a wealth start-up, Bento. The have since re-branded them to be GrabInvest. It looks like they have ambitious plans to expand into South East Asia with Singapore as its base. We have seen quite a number of new services and products that Grab has been rolling out. That is the benefits of having strong backers as well as a branding that aims to disrupt some industry. I’m not too sure how big they can become but they have been throwing marketing dollars for some time to build their brand. You can read more about the acquisition here at Bento As GrabInvest.
Invest, Save and Grab
It sounds like Grab is going to bring out the brand in their app once more. They probably want to integrate this into the Super App that we often hear about. The tag line is pretty effective I say.
Almost No Barrier to Entry
It takes only a small amount to start investing. I don’t think Syfe and StashAway has a minimum amount to start investing but this set them apart from the usual investing through micro-investing. I’m not too sure about the effectiveness though.
Each time you use the app to do certain actions, you get to choose an amount that will be used to invest automatically. Good habit though.
There is no lock-up for your funds so you can transfer your money back to the wallet anytime. Talk about flexibility.
Okay, looking at how things are. This is similar to the other robo-advisors as to their cash solutions. The underlying funds would be Fullerton Fund and UOB asset management. My guess is the usual short duration bonds or assets as close to cash funds. Due to the nature of the expected returns projected at 1.8% p.a., it is most likely the case.
Fees are simple at 0.45% p.a. Similar or higher than other solutions. If you ask me, I’ll go for Singlife account where you can deposit up to S$10k at 2.5% p.a. and it is SDIC protected. Micro-investing versus Singlife – Singlife wins hands down but integration wise and branding, Grab edges forward a little more.
Read about my previous post on Singlife here at Where to Park Your Funds? Singlife
For excess funds of more than S$10k, get into Dash and Earn. The first year will be at 2% p.a. capped at $20k. Then go for Tiq Gigantiq at 2%p.a. (For the first year) capped at S$10k. On the options available, I’ll give grab a miss unless I have too much spare cash in their wallet that I can’t take it out.
It seems like it is a hype for now. Other for convenience, I can’t find much differentiation from the rest of the many options available in the market except for convenience. It doesn’t help that Grab is trying to take over the world by trying to integrate everything. I don’t support a monopoly so that is a minus. However, I do think that there are other services which will show up on the app in the near future. Coupled with the fact that digital banking license will be announced in Q4 2020 or in 2021 should there be any delay. As a consumer, we should be happy about competition.
I do see more pros than cons though, given their history of data breaches and bad marketing. Also, I don’t see that they are MAS licensed or approved nor are they working with any financial institutions other than the mentioned fund houses or asset managers. On top of that, monies are held in custody of Grab. Reading their Terms and Conditions, it seemed like they got their own ass covered as compared to the consumer so I’m not too sure about that.
I still don’t see it on my Grab App even after updating the app so I’m wondering how buggy their app can be over time.
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Images seen in this article were take off the relevant websites for illustration purposes only.