Nearly all intermediaries in Singapore use AI for client work

Widespread use of AI raises the question of how Singapore intermediaries test the answers it gives them. When using AI tools or answer engines to gather investment-related information, almost all verify its accuracy or reliability, according to Aureum Y research. The most common methods are checking official reports or publications, cited by 59%, and comparing with other financial websites, at 56%.

When rating how reliable information from different sources is for advising clients on investments, intermediaries place AI tools behind online investment platforms but ahead of robo-advisors and financial influencers.

Reliability matters when choosing information sources, and brand familiarity matters when choosing managers. Aureum Y asked intermediaries how familiar they are with a predefined list of asset managers. In Singapore, familiarity goes hand in hand with propensity to buy, the likelihood of increasing use of a manager's funds. On average, 47% of intermediaries are quite or very likely to increase their use of the five most familiar managers over the next 12 months, against only 14% for the five least familiar.

Familiarity gets a manager considered, but intermediaries still have to choose between similar funds. In Aureum Y data, 58% of intermediaries name cost when asked which three factors matter most in deciding between two funds investing in the same asset class with very similar track records. Investment philosophy follows closely at 56%. Non-monetary considerations therefore carry significant weight, with brand strength and others also in the ranking.

Choosing a fund starts a working relationship with its manager, so the survey also measures how satisfied intermediaries are with those managers. According to Aureum Y data, 72% are very or quite satisfied, and none are dissatisfied. However, when rating types of support from asset managers, intermediaries give client-facing support the lowest share of good or excellent ratings, at 39%.

When asked what asset managers can do to support them during times of crisis and uncertainty, intermediaries describe timely updates, scenario analysis, access to portfolio managers and client-ready material.

This overview covers how intermediaries use AI, how they choose between funds and how they rate support. Aureum Y's Global Brand Survey Report for Singapore, publishing later this year, goes much further. It measures brand familiarity, unprompted brand recall, propensity to buy and distinctiveness, and shows how each metric plays out for individual asset management firms operating in the Singapore market. For marketing professionals at asset managers, it pinpoints where their brand stands.