1 00:00:00,009 --> 00:00:02,349 Speaker 1: You're listening to AC N A podcast. 2 00:00:05,250 --> 00:00:08,270 Speaker 1: Hey, there. It's Andrea Heng. And this is the Money 3 00:00:08,279 --> 00:00:11,359 Speaker 1: Talks podcast where we discuss everything there is to know 4 00:00:11,369 --> 00:00:14,890 Speaker 1: about personal finance. If this is the kind of topic 5 00:00:14,899 --> 00:00:18,549 Speaker 1: you're interested in and you probably are. That's why you're here. 6 00:00:18,659 --> 00:00:22,290 Speaker 1: Follow us on Spotify Apple podcasts and youtube music, 7 00:00:22,715 --> 00:00:27,655 Speaker 1: you'll be notified immediately when a new episode drops and 8 00:00:27,665 --> 00:00:30,354 Speaker 1: it will make a huge difference to us. If you 9 00:00:30,364 --> 00:00:33,575 Speaker 1: follow us, let us know your burning questions and we'll 10 00:00:33,584 --> 00:00:36,685 Speaker 1: get them answered for you. Now, let's get into some 11 00:00:36,694 --> 00:00:39,534 Speaker 1: quick headlines that you may have missed this week. Hey, Tiffany. 12 00:00:40,110 --> 00:00:42,950 Speaker 1: Hey. All right. So what are we starting with? Let's 13 00:00:42,959 --> 00:00:45,479 Speaker 1: start with a question for you on a scale of 14 00:00:45,490 --> 00:00:49,599 Speaker 1: 1 to 10. How comfortable are you about declaring all 15 00:00:49,610 --> 00:00:53,009 Speaker 1: your personal information to your insurance provider? I'm talking here 16 00:00:53,020 --> 00:00:57,419 Speaker 1: about your income assets and information about your dependents to 17 00:00:57,430 --> 00:01:01,369 Speaker 1: my insurance provider. You know what? I actually don't think 18 00:01:01,380 --> 00:01:05,180 Speaker 1: twice about it. I probably go all out. Same. I 19 00:01:05,190 --> 00:01:07,910 Speaker 1: do the same as well because I've never considered how 20 00:01:07,919 --> 00:01:09,289 Speaker 1: much data I'm giving. 21 00:01:09,599 --> 00:01:12,660 Speaker 1: I always assume that this is crucial information exactly. That's 22 00:01:12,669 --> 00:01:14,919 Speaker 1: what I think you're about to tell me that that's 23 00:01:14,930 --> 00:01:17,789 Speaker 1: not the case. Well, that still is the case but 24 00:01:17,800 --> 00:01:21,098 Speaker 1: that may change because the monetary authority of Singapore is 25 00:01:21,110 --> 00:01:25,190 Speaker 1: proposing to cut down the information that customers need to 26 00:01:25,199 --> 00:01:30,190 Speaker 1: give when buying simple insurance policies. Oh, wow, that's huge. Ok. 27 00:01:30,199 --> 00:01:33,959 Speaker 1: So what is considered simple though? So for example, we're 28 00:01:33,970 --> 00:01:35,779 Speaker 1: talking about life insurance policy, 29 00:01:35,889 --> 00:01:40,319 Speaker 1: standard critical illness riders that are sold with term life 30 00:01:40,330 --> 00:01:46,120 Speaker 1: insurance and stand alone critical illness policies. Basically almost everything 31 00:01:46,129 --> 00:01:48,910 Speaker 1: that I have. I am relieved, but at the same 32 00:01:48,919 --> 00:01:52,029 Speaker 1: time stupefied because I'm thinking, wow, why didn't I think 33 00:01:52,040 --> 00:01:55,900 Speaker 1: about the ramifications of giving away my privacy or my 34 00:01:55,910 --> 00:01:59,660 Speaker 1: data to someone like an insurance agent, like I would 35 00:01:59,669 --> 00:02:02,069 Speaker 1: have thought that would be absolutely vital, right? 36 00:02:02,430 --> 00:02:06,319 Speaker 1: Ok. So what sort of information then do I not 37 00:02:06,330 --> 00:02:10,119 Speaker 1: have to reveal if this policy goes ahead? Yeah, so 38 00:02:10,199 --> 00:02:13,550 Speaker 1: you don't have to reveal details like your employment status, 39 00:02:13,690 --> 00:02:17,728 Speaker 1: your assets and your liabilities. But let's talk about stuff 40 00:02:17,740 --> 00:02:20,660 Speaker 1: that you must declare still, right? Things like your annual 41 00:02:20,669 --> 00:02:24,520 Speaker 1: income and your financial objectives. Sure. Yeah. So for anyone 42 00:02:24,529 --> 00:02:27,350 Speaker 1: who's listening now, if you like the idea that insurance 43 00:02:27,360 --> 00:02:29,820 Speaker 1: companies shouldn't collect too much of your data, 44 00:02:30,087 --> 00:02:33,246 Speaker 1: you have until 15th March to give your feedback to 45 00:02:33,257 --> 00:02:35,995 Speaker 1: the MA S, you know, this is so important especially 46 00:02:36,007 --> 00:02:38,806 Speaker 1: now in an age where your personal data might just 47 00:02:38,817 --> 00:02:42,906 Speaker 1: be floating around anywhere and you don't know how safe 48 00:02:42,917 --> 00:02:48,626 Speaker 1: these providers, these companies are going to be guarding hacks. Right. Exactly. Exactly. Wow, 49 00:02:48,636 --> 00:02:51,847 Speaker 1: this is huge. I might actually fill up that feedback 50 00:02:51,856 --> 00:02:54,787 Speaker 1: form to the MS. Ok. So moving on quickly to 51 00:02:54,796 --> 00:02:57,405 Speaker 1: another piece of news, can't ignore this one. Is 52 00:02:57,483 --> 00:03:02,113 Speaker 1: this finally the end of the Lazada retrenchment saga just 53 00:03:02,123 --> 00:03:05,464 Speaker 1: to prime us off last week, Lazada and the unions 54 00:03:05,473 --> 00:03:10,264 Speaker 1: representing the retrench workers said they came to an amicable settlement. 55 00:03:10,324 --> 00:03:13,884 Speaker 1: An NTUC spokesperson told CN A that union members can 56 00:03:13,893 --> 00:03:18,404 Speaker 1: be assured that they will now be better off. But 57 00:03:18,413 --> 00:03:21,722 Speaker 1: here's the caveat. They didn't disclose what the final payout 58 00:03:21,733 --> 00:03:24,783 Speaker 1: will look like because of a confidentiality agreement. 59 00:03:25,061 --> 00:03:27,261 Speaker 1: Ok. So I guess we can just take it as 60 00:03:27,270 --> 00:03:31,251 Speaker 1: surface value that is better off. Yeah, exactly. Here's hoping 61 00:03:31,261 --> 00:03:33,709 Speaker 1: that the money can still help these workers t through 62 00:03:33,720 --> 00:03:36,281 Speaker 1: at least a few months before they find a new job. 63 00:03:36,440 --> 00:03:39,160 Speaker 1: I personally have a story that I will say for 64 00:03:39,171 --> 00:03:41,860 Speaker 1: next week when we look at how to manage your finances, 65 00:03:41,871 --> 00:03:46,160 Speaker 1: if you're retrenched, making that episode was significant for me 66 00:03:46,171 --> 00:03:48,680 Speaker 1: because it made me wish that I had someone to 67 00:03:48,690 --> 00:03:50,710 Speaker 1: walk me through this. But then you know what, that's 68 00:03:50,720 --> 00:03:52,520 Speaker 1: what we are here for to help you. 69 00:03:55,320 --> 00:03:59,800 Speaker 1: Every Singaporeans first bank account is one that's set up 70 00:03:59,809 --> 00:04:03,009 Speaker 1: by his or her parents and then we grow up, 71 00:04:03,020 --> 00:04:05,139 Speaker 1: we strike out on our own because you know, we 72 00:04:05,149 --> 00:04:07,839 Speaker 1: want to take charge of our finances. We're adults. Right. 73 00:04:08,139 --> 00:04:11,479 Speaker 1: So we do what we do best. We go out. Well, 74 00:04:11,490 --> 00:04:14,759 Speaker 1: these days we go online to shop around for a 75 00:04:14,770 --> 00:04:18,859 Speaker 1: new bank account that best serves our financial needs and goals. 76 00:04:19,230 --> 00:04:23,380 Speaker 1: But when there are so many types of savings accounts 77 00:04:23,519 --> 00:04:28,130 Speaker 1: offered by so many banks, it gets really overwhelming. Well, 78 00:04:28,140 --> 00:04:31,220 Speaker 1: this episode is here to cut through the noise and 79 00:04:31,230 --> 00:04:34,178 Speaker 1: we're going to get help from Prashant Agarwal CEO at 80 00:04:34,190 --> 00:04:36,219 Speaker 1: Money Hero Group. Hey Prashant. Hey 81 00:04:36,230 --> 00:04:37,630 Speaker 2: and very nice to meet you. 82 00:04:37,850 --> 00:04:41,029 Speaker 1: Wise, likewise. Thanks for coming in. So before we begin, 83 00:04:41,040 --> 00:04:44,670 Speaker 1: I'm curious, do you have more than one savings account? 84 00:04:45,070 --> 00:04:48,209 Speaker 1: I do. Ok. Alright, please walk me through this. How 85 00:04:48,220 --> 00:04:49,739 Speaker 1: many do you have and why I 86 00:04:49,750 --> 00:04:51,799 Speaker 2: in fact have three, you 87 00:04:51,809 --> 00:04:56,190 Speaker 1: have three savings account and what does each one do 88 00:04:56,660 --> 00:05:00,670 Speaker 2: look? I think diversification of accounts is important, right? And 89 00:05:00,678 --> 00:05:03,739 Speaker 2: I actually personally encourage that quite a bit. When I 90 00:05:03,750 --> 00:05:06,440 Speaker 2: say three accounts, you're talking about one account for your 91 00:05:06,450 --> 00:05:12,480 Speaker 2: everyday expenses. You're using one account for your savings. Ok. Right. 92 00:05:12,488 --> 00:05:15,500 Speaker 2: Which is emergency fund, right? And one account, which is 93 00:05:15,510 --> 00:05:17,558 Speaker 2: your wealth management account, right? Which is where you do 94 00:05:17,570 --> 00:05:21,279 Speaker 2: most of the investments. Now, why do I believe in 95 00:05:21,290 --> 00:05:25,359 Speaker 2: having more than one account is because firstly, it makes 96 00:05:25,369 --> 00:05:25,380 Speaker 2: a 97 00:05:25,452 --> 00:05:29,412 Speaker 2: of sense to have multiple accounts to diverse your risk, right? 98 00:05:29,423 --> 00:05:31,872 Speaker 2: You know, we know that we are all in Singapore. 99 00:05:31,882 --> 00:05:34,833 Speaker 2: All bank accounts are protected. By SD I and that 100 00:05:34,842 --> 00:05:38,372 Speaker 2: limit is 75,000 Singapore dollars for now. But that is 101 00:05:38,382 --> 00:05:43,183 Speaker 2: going to change to $100,000 starting first of April. Now, 102 00:05:43,202 --> 00:05:48,032 Speaker 2: I do believe that in Singapore banking system is incredibly safe. 103 00:05:48,041 --> 00:05:51,673 Speaker 2: It is probably one of the safest banking systems in 104 00:05:51,683 --> 00:05:54,153 Speaker 2: the world to be here. Absolutely, 105 00:05:54,246 --> 00:05:57,286 Speaker 2: absolutely. We all should be very proud of the infrastructure 106 00:05:57,295 --> 00:05:59,996 Speaker 2: that our regulators have created for us. But having said 107 00:06:00,005 --> 00:06:03,946 Speaker 2: that diversifying and splitting your risk is still a good idea. 108 00:06:04,246 --> 00:06:08,265 Speaker 2: The second reason I believe is having a backup for emergencies. Now, 109 00:06:08,276 --> 00:06:11,126 Speaker 2: as much as our banking systems are very stable and 110 00:06:11,135 --> 00:06:13,746 Speaker 2: you know, most of the transactions are done digitally. We 111 00:06:13,755 --> 00:06:18,276 Speaker 2: have had instances where the digital platforms have gone down, right? 112 00:06:18,286 --> 00:06:20,936 Speaker 2: And we've had more than one such instances. So you 113 00:06:20,946 --> 00:06:22,915 Speaker 2: don't want to be in that position where you're stuck, 114 00:06:23,039 --> 00:06:25,718 Speaker 2: need to make an urgent payment and and you're unable 115 00:06:25,729 --> 00:06:27,897 Speaker 2: to do that. So that's another reason for that. Um 116 00:06:27,908 --> 00:06:30,269 Speaker 2: The third one is personally for me that I'm very 117 00:06:30,278 --> 00:06:33,989 Speaker 2: passionate about is maximizing my returns now because there are 118 00:06:33,998 --> 00:06:37,579 Speaker 2: so many options available, there are such great deals available. 119 00:06:38,338 --> 00:06:41,459 Speaker 2: You can split your money into multiple bank accounts and 120 00:06:41,468 --> 00:06:44,058 Speaker 2: maximize your returns. So that I feel is a great 121 00:06:44,069 --> 00:06:47,378 Speaker 2: opportunity not to be missed. And lastly, it just helps 122 00:06:47,389 --> 00:06:50,139 Speaker 2: you manage your finances better personally for me. But even 123 00:06:50,148 --> 00:06:51,738 Speaker 2: for the younger generation that I all 124 00:06:51,832 --> 00:06:55,231 Speaker 2: always talk to or I mentor is use the 50 125 00:06:55,242 --> 00:07:00,532 Speaker 2: 30 20 rule which is use 50% not more than 50% 126 00:07:00,541 --> 00:07:05,011 Speaker 2: of your total salary in expenses. Ok. 30% in investments 127 00:07:05,141 --> 00:07:08,451 Speaker 2: and put 20% in savings for your emergency fund. It 128 00:07:08,462 --> 00:07:10,302 Speaker 2: may be a good idea to put them in a 129 00:07:10,312 --> 00:07:13,582 Speaker 2: separate bank account out of sight, out of mind. No 130 00:07:13,592 --> 00:07:14,032 Speaker 2: withdrawal 131 00:07:14,041 --> 00:07:14,772 Speaker 1: card needed. 132 00:07:14,782 --> 00:07:15,691 Speaker 2: Absolutely. 133 00:07:16,361 --> 00:07:17,861 Speaker 1: That's a good move. That's a good move. I like 134 00:07:17,872 --> 00:07:20,532 Speaker 1: that rule 50 30 20. Ok. So as you 135 00:07:20,625 --> 00:07:22,924 Speaker 1: right, there are so many types of accounts out there, 136 00:07:22,975 --> 00:07:26,875 Speaker 1: there's a savings account, a current account, multi currency, even 137 00:07:26,885 --> 00:07:30,265 Speaker 1: fixed deposit accounts. And these tend to be the most 138 00:07:30,274 --> 00:07:34,454 Speaker 1: common ones. What's the difference between all of these different accounts? 139 00:07:34,515 --> 00:07:34,614 Speaker 1: I'll 140 00:07:34,625 --> 00:07:38,084 Speaker 2: try and explain this in a very simple current account 141 00:07:38,135 --> 00:07:41,265 Speaker 2: is as the name suggests, it's an account you use 142 00:07:41,274 --> 00:07:44,565 Speaker 2: for your everyday expense, right? Have enough money in it 143 00:07:44,575 --> 00:07:48,345 Speaker 2: that you're using your transactions, your daily transactions, your inflows 144 00:07:48,355 --> 00:07:49,325 Speaker 2: and outflows from it. 145 00:07:49,630 --> 00:07:51,519 Speaker 2: But be careful. Actually, I would say in all of 146 00:07:51,529 --> 00:07:54,679 Speaker 2: them that they could be minimum balance requirements, right? So 147 00:07:54,690 --> 00:07:58,890 Speaker 2: current account is typically used for your current expenses, savings accounts, 148 00:07:59,059 --> 00:08:02,500 Speaker 2: as I said previously is your emergency, right? So do 149 00:08:02,510 --> 00:08:06,010 Speaker 2: not do not touch, right? Do not touch until you 150 00:08:06,019 --> 00:08:10,160 Speaker 2: absolutely need to. And a fixed deposits as we know 151 00:08:10,170 --> 00:08:14,760 Speaker 2: are deposits that get locked in. So while fixed deposits 152 00:08:14,769 --> 00:08:17,489 Speaker 2: are a great way to earn some some income, 153 00:08:17,700 --> 00:08:20,829 Speaker 2: but you know that it is not liquid asset, right? 154 00:08:20,839 --> 00:08:23,600 Speaker 2: If you urgently need money, you're going to lose, you're 155 00:08:23,609 --> 00:08:25,200 Speaker 2: going to have to pay some penalty to break your 156 00:08:25,209 --> 00:08:28,670 Speaker 2: fixed deposit. So fixed deposits is, is kept quite separately. 157 00:08:28,920 --> 00:08:30,709 Speaker 2: And then of course, you know, you have your investment 158 00:08:30,720 --> 00:08:34,390 Speaker 2: accounts that are used primarily for your stock trading, for 159 00:08:34,400 --> 00:08:36,780 Speaker 2: your equity trading or your other investment 160 00:08:36,789 --> 00:08:40,189 Speaker 1: needs. What's your take on the multi currency accounts? Where 161 00:08:40,200 --> 00:08:42,890 Speaker 1: do they fall in terms of popularity? I guess in 162 00:08:42,900 --> 00:08:45,409 Speaker 1: terms of, I would say utility 163 00:08:45,880 --> 00:08:51,369 Speaker 2: multi currency accounts, it depends significantly on the individual needs. Now, 164 00:08:51,380 --> 00:08:55,218 Speaker 2: I can talk about my own example. I have lived 165 00:08:55,780 --> 00:08:56,820 Speaker 2: in seven countries. 166 00:08:57,820 --> 00:08:58,539 Speaker 1: That's the dream. 167 00:08:58,549 --> 00:09:00,520 Speaker 2: Now, of course, Singapore is home for me. I'm very 168 00:09:00,530 --> 00:09:02,848 Speaker 2: proud of being here, but that means that I do 169 00:09:02,859 --> 00:09:07,659 Speaker 2: have some financial interest in multiple countries. All right. So 170 00:09:07,669 --> 00:09:11,549 Speaker 2: multi currency account specifically for me is very, very useful 171 00:09:11,650 --> 00:09:15,289 Speaker 2: because I do need to transfer funds into multiple accounts. 172 00:09:15,299 --> 00:09:19,260 Speaker 2: And I love to have a consolidated view of all my, 173 00:09:19,270 --> 00:09:21,919 Speaker 2: all my expenses and all my incomes. Now I do 174 00:09:22,010 --> 00:09:25,119 Speaker 2: some rental incomes from properties which are overseas and I 175 00:09:25,130 --> 00:09:28,238 Speaker 2: would like to keep them in my consolidated account. So 176 00:09:28,250 --> 00:09:30,189 Speaker 2: that is one use case, there could be other use 177 00:09:30,200 --> 00:09:32,909 Speaker 2: cases as well, which means sometimes you may want to 178 00:09:32,919 --> 00:09:36,309 Speaker 2: just park some money in a different foreign exchange account 179 00:09:36,320 --> 00:09:38,250 Speaker 2: because you see that the rates are really good. Like, 180 00:09:38,260 --> 00:09:40,580 Speaker 2: for example, a lot of people are, now we're looking 181 00:09:40,590 --> 00:09:45,728 Speaker 2: at Singapore, Japanese yen or even Singapore Australian dollar Malaysian 182 00:09:45,739 --> 00:09:48,270 Speaker 2: ring it. Right. So it could be a great way 183 00:09:48,349 --> 00:09:52,090 Speaker 2: to make some small trades for yourselves. And the difference 184 00:09:52,099 --> 00:09:54,609 Speaker 2: between trading and a multi currency account is this is 185 00:09:54,619 --> 00:09:57,190 Speaker 2: your own asset. It's sitting with you. You're not speculating 186 00:09:57,200 --> 00:09:58,190 Speaker 2: it on a daily basis. 187 00:09:58,489 --> 00:10:00,309 Speaker 1: You're just parking it in there and watching it move. 188 00:10:00,320 --> 00:10:04,229 Speaker 2: Absolutely. Absolutely. So those utilities now, I do feel that 189 00:10:04,239 --> 00:10:07,020 Speaker 2: there was another utility which is gradually going down, which 190 00:10:07,030 --> 00:10:11,090 Speaker 2: was travel. Yes. And now you have so many more options. 191 00:10:11,099 --> 00:10:13,609 Speaker 2: You have travel cards, you have multi currency, travel cards 192 00:10:13,739 --> 00:10:14,599 Speaker 2: which are kind of 193 00:10:14,690 --> 00:10:18,590 Speaker 2: disrupting the multi currency account. But you know, it depends 194 00:10:18,599 --> 00:10:21,069 Speaker 2: each to yourself. You know, what, what's your spending habit? 195 00:10:21,080 --> 00:10:23,770 Speaker 2: What's your usage habit? There is some utility of travel 196 00:10:23,780 --> 00:10:25,950 Speaker 1: there. That's a great primer. Thanks very much for that. 197 00:10:25,960 --> 00:10:28,750 Speaker 1: So I wanted to go back to history a little bit. 198 00:10:28,760 --> 00:10:31,090 Speaker 1: So back in the day, it's really just a very 199 00:10:31,099 --> 00:10:34,140 Speaker 1: simple bank account to what it is now where there 200 00:10:34,150 --> 00:10:37,150 Speaker 1: are so many different ones. I mean, what's changed or 201 00:10:37,159 --> 00:10:40,390 Speaker 1: what's prompted this emergence of having just so many accounts 202 00:10:40,400 --> 00:10:40,909 Speaker 1: out there. 203 00:10:41,469 --> 00:10:47,020 Speaker 2: Let me say the wealth of Singaporeans. I mean, we are, 204 00:10:47,030 --> 00:10:49,239 Speaker 2: we are very, I mean, it's a real reason, very 205 00:10:49,250 --> 00:10:52,679 Speaker 2: wealthy country, right? And at the same time, so banks 206 00:10:52,690 --> 00:10:56,159 Speaker 2: see us as a very attractive market. Now, I categorize 207 00:10:56,169 --> 00:11:00,369 Speaker 2: banks in four broad categories. So you've got the big 208 00:11:00,380 --> 00:11:05,840 Speaker 2: three Singaporean banks. Then you have the large international banks, right, 209 00:11:06,109 --> 00:11:09,859 Speaker 2: then you have the challenger banks, right. These are banks 210 00:11:09,869 --> 00:11:12,549 Speaker 2: which are regional banks who are trying to make a 211 00:11:12,559 --> 00:11:17,000 Speaker 2: presence in Singapore and actually have seen unprecedented growth, significant 212 00:11:17,010 --> 00:11:18,640 Speaker 2: growth in the recent times. I can think of a 213 00:11:18,650 --> 00:11:23,010 Speaker 2: few actually. And then you have the digital banks. That's right. Right. 214 00:11:23,164 --> 00:11:26,614 Speaker 2: The new new kids on the block. Now, what is 215 00:11:26,625 --> 00:11:31,364 Speaker 2: interesting is each of these are looking to attract a 216 00:11:31,375 --> 00:11:35,424 Speaker 2: different kind of customer, right? Because some of the banks 217 00:11:35,434 --> 00:11:38,544 Speaker 2: like your large Singaporean banks may want to deepen a 218 00:11:38,554 --> 00:11:40,104 Speaker 2: relationship with the customer. 219 00:11:40,460 --> 00:11:44,030 Speaker 2: A digital bank is looking for acquisition, right? A Challenger 220 00:11:44,039 --> 00:11:48,549 Speaker 2: Bank may want to attract you again from an acquisition perspective, 221 00:11:48,559 --> 00:11:51,358 Speaker 2: they want to attract you or they have very, very 222 00:11:51,460 --> 00:11:55,968 Speaker 2: attractive exchange rates between Singapore and their home countries. So 223 00:11:55,979 --> 00:12:01,539 Speaker 2: they're all attracting different types of customers. And that fundamentally 224 00:12:01,549 --> 00:12:03,000 Speaker 2: means that there is 225 00:12:03,090 --> 00:12:07,239 Speaker 2: something great for all of us, irrespective of how much 226 00:12:07,250 --> 00:12:10,189 Speaker 2: money we make, what our age is, what our financial 227 00:12:10,200 --> 00:12:15,030 Speaker 2: status is. There is a great bank account available for 228 00:12:15,039 --> 00:12:17,559 Speaker 2: all of us. All we need to do is make 229 00:12:17,570 --> 00:12:21,119 Speaker 2: sure that we are doing our research, we understand what 230 00:12:21,130 --> 00:12:24,309 Speaker 2: our financial needs are. We're doing our research, we use 231 00:12:24,320 --> 00:12:25,539 Speaker 2: platforms which 232 00:12:25,719 --> 00:12:29,400 Speaker 2: simplify the benefits of all these bank accounts for you 233 00:12:29,409 --> 00:12:32,659 Speaker 2: match your requirements to it and make a decision. So, 234 00:12:32,669 --> 00:12:34,669 Speaker 2: so we're in a very good position actually. Yeah, 235 00:12:34,679 --> 00:12:37,710 Speaker 1: we spot for choice. We're the ultimate buffet table if 236 00:12:37,719 --> 00:12:40,409 Speaker 1: I can put it that way. All right. So what 237 00:12:40,419 --> 00:12:44,119 Speaker 1: are the things that we need to think about when 238 00:12:44,130 --> 00:12:48,329 Speaker 1: it comes to deciding which type of account to open? 239 00:12:48,510 --> 00:12:52,059 Speaker 1: I'm thinking here, the difference between function 240 00:12:52,349 --> 00:12:53,450 Speaker 1: and goal. 241 00:12:54,179 --> 00:12:57,010 Speaker 2: It's a really good question. Now, there are some very 242 00:12:57,020 --> 00:12:59,020 Speaker 2: fundamental things that we should look at when we are 243 00:12:59,030 --> 00:13:01,580 Speaker 2: looking to search for a bank account. The first thing 244 00:13:01,590 --> 00:13:04,030 Speaker 2: is what is the interest rate that we're going to 245 00:13:04,039 --> 00:13:07,380 Speaker 2: earn from it. And especially since the interest rates have 246 00:13:07,390 --> 00:13:08,630 Speaker 2: gone up, there are some 247 00:13:08,765 --> 00:13:12,385 Speaker 2: very attractive offers out there. The second thing is to 248 00:13:12,395 --> 00:13:16,544 Speaker 2: look at fees, right? And not be blindsided because some 249 00:13:16,554 --> 00:13:20,655 Speaker 2: accounts do attract fee if you go below a minimum balance. 250 00:13:20,994 --> 00:13:24,294 Speaker 2: The third one is convenience. Now, convenience can be broken 251 00:13:24,304 --> 00:13:25,065 Speaker 2: down into two. 252 00:13:25,349 --> 00:13:28,780 Speaker 2: The number of atms that the bank has now that 253 00:13:28,789 --> 00:13:32,500 Speaker 2: is becoming increasingly less important for someone like me. And 254 00:13:32,510 --> 00:13:34,549 Speaker 2: I think for most of us since COVID, because now 255 00:13:34,559 --> 00:13:36,809 Speaker 2: we do a lot of digital payments. Having said that 256 00:13:36,820 --> 00:13:38,330 Speaker 2: every once in a while you do need a little 257 00:13:38,340 --> 00:13:40,250 Speaker 2: bit of cash. So you need to make sure that 258 00:13:40,260 --> 00:13:43,289 Speaker 2: the bank that you choose has some ATM coverage. The 259 00:13:43,299 --> 00:13:47,219 Speaker 2: second part of convenience is the digital banking app. How 260 00:13:47,229 --> 00:13:48,289 Speaker 2: easy it is to 261 00:13:48,299 --> 00:13:49,530 Speaker 1: use. It is so crucial. 262 00:13:49,539 --> 00:13:51,719 Speaker 2: This exactly because you have to make 263 00:13:51,825 --> 00:13:53,625 Speaker 2: payments, you have to receive money, you have to check 264 00:13:53,635 --> 00:13:56,724 Speaker 2: your accounts. So how easy it is for you to use. 265 00:13:56,734 --> 00:14:00,364 Speaker 2: And last and definitely not the least is the rewards 266 00:14:00,375 --> 00:14:02,645 Speaker 2: and the gifts or the incentive. I'm 267 00:14:02,655 --> 00:14:06,454 Speaker 1: really curious about this angle here. I mean, obviously it's 268 00:14:06,465 --> 00:14:09,164 Speaker 1: attractive to me as a customer, but what's in it 269 00:14:09,174 --> 00:14:11,864 Speaker 1: for the bank? I mean, what's the mechanism here? Try 270 00:14:11,875 --> 00:14:15,723 Speaker 1: and walk me through this psychology of offering these gifts 271 00:14:15,734 --> 00:14:18,164 Speaker 1: and extra rewards for signing up with them. 272 00:14:18,679 --> 00:14:21,619 Speaker 2: I think it's a way for banks to attract new customers. 273 00:14:21,789 --> 00:14:25,969 Speaker 2: It's as simple as that, right? Gifts are a great 274 00:14:25,979 --> 00:14:29,619 Speaker 2: way to advertise to market a product and it is 275 00:14:29,630 --> 00:14:33,530 Speaker 2: a great incentive for a customer to make a decision. Now, 276 00:14:33,539 --> 00:14:36,049 Speaker 2: I'll tell you in very simplistic form, right? You and 277 00:14:36,059 --> 00:14:39,500 Speaker 2: I are talking about it as friends and we're thinking about, yeah, we, 278 00:14:39,580 --> 00:14:41,770 Speaker 2: you know, we should maybe this account, maybe that account, 279 00:14:41,780 --> 00:14:44,450 Speaker 2: let's do our research. Now, when you see a gift, 280 00:14:44,469 --> 00:14:46,059 Speaker 2: it prompts you to make a decision, 281 00:14:47,989 --> 00:14:49,820 Speaker 2: you stop thinking you actually act 282 00:14:49,880 --> 00:14:52,450 Speaker 1: like, oh, I want that. I'll sign up just to 283 00:14:52,460 --> 00:14:52,669 Speaker 1: get 284 00:14:52,679 --> 00:14:57,580 Speaker 2: that correct. So I don't recommend people to simply pick 285 00:14:57,590 --> 00:14:59,929 Speaker 2: a product because the gift is attractive. 286 00:14:59,950 --> 00:15:03,020 Speaker 1: Yeah, see I wouldn't, I wouldn't either. And I'm trying 287 00:15:03,030 --> 00:15:06,229 Speaker 1: to understand the psychology of the people that do. I mean, is, 288 00:15:06,239 --> 00:15:08,859 Speaker 1: is that what it really is. It's just trying to 289 00:15:08,869 --> 00:15:11,960 Speaker 1: draw the customer to that particular product that may actually 290 00:15:11,969 --> 00:15:13,619 Speaker 1: be inferior perhaps. 291 00:15:13,909 --> 00:15:15,900 Speaker 2: And I don't think so. I don't think that's the 292 00:15:15,909 --> 00:15:15,969 Speaker 2: idea 293 00:15:16,536 --> 00:15:21,137 Speaker 2: the key objective is to make people act, right? I 294 00:15:21,146 --> 00:15:27,007 Speaker 2: think rewards help people make the decision faster and act, 295 00:15:27,117 --> 00:15:30,836 Speaker 2: which means you don't procrastinate your decision, right? So my 296 00:15:30,846 --> 00:15:34,817 Speaker 2: recommendation always is know what your needs are, right? And 297 00:15:34,827 --> 00:15:36,997 Speaker 2: let's go through those, let's say in a bank account, 298 00:15:37,007 --> 00:15:40,137 Speaker 2: what are typically your needs? Your first need is you've 299 00:15:40,146 --> 00:15:42,367 Speaker 2: got a certain amount of deposit that you want to 300 00:15:42,377 --> 00:15:44,247 Speaker 2: park somewhere. The second is 301 00:15:44,333 --> 00:15:45,133 Speaker 2: have your salary. 302 00:15:45,364 --> 00:15:47,223 Speaker 1: Yes, I was going to ask about that. Yeah, that 303 00:15:47,234 --> 00:15:49,504 Speaker 2: should be credited somewhere. So you need an account to 304 00:15:49,513 --> 00:15:52,133 Speaker 2: credit your salary. Third is going to be a credit card, 305 00:15:52,143 --> 00:15:56,093 Speaker 2: you know, you make certain payments. Fourth is bill payments, right? 306 00:15:56,104 --> 00:15:59,473 Speaker 2: You're making utility payments, telco payments, et cetera. Now these 307 00:15:59,484 --> 00:16:04,073 Speaker 2: four things are pretty much table take standard for everyone, 308 00:16:04,883 --> 00:16:09,754 Speaker 2: then comes other products such as home loan, right? Insurance 309 00:16:10,104 --> 00:16:12,504 Speaker 2: and investment accounts. Now 310 00:16:12,601 --> 00:16:16,260 Speaker 2: what banks are doing is it's very easy to understand 311 00:16:16,460 --> 00:16:20,721 Speaker 2: that banks will share with you or incentivize you if 312 00:16:20,731 --> 00:16:24,301 Speaker 2: they make money. Sure, of course, it's simple business which 313 00:16:24,310 --> 00:16:26,060 Speaker 2: means the more money they make from you, the more 314 00:16:26,070 --> 00:16:27,440 Speaker 2: they're willing to incentivize. Yeah, they're 315 00:16:27,460 --> 00:16:29,270 Speaker 1: basically paying for your loyalty. 316 00:16:29,281 --> 00:16:33,781 Speaker 2: Absolutely. So mapping what your needs are. Now, there are banks, 317 00:16:33,791 --> 00:16:37,971 Speaker 2: I can tell you which can give you about 3 3.5% 318 00:16:38,120 --> 00:16:40,770 Speaker 2: of interest on savings account. Six, 319 00:16:41,148 --> 00:16:44,958 Speaker 2: for crediting your salary, making bill payments and spending more 320 00:16:44,968 --> 00:16:48,067 Speaker 2: than $500 on their credit card in one account just 321 00:16:48,078 --> 00:16:51,888 Speaker 2: simply doing that. But you also need to then see, 322 00:16:51,898 --> 00:16:54,168 Speaker 2: is there a catch, it may be banks that don't 323 00:16:54,177 --> 00:16:57,208 Speaker 2: have a very vast branch network or they do not 324 00:16:57,218 --> 00:17:00,228 Speaker 2: have a very vast ATM network. So you may need 325 00:17:00,237 --> 00:17:03,588 Speaker 2: to balance it out. Similarly, if you are someone like 326 00:17:03,598 --> 00:17:06,378 Speaker 2: me who's in my late forties, I've got a family, 327 00:17:06,387 --> 00:17:09,047 Speaker 2: I've got kids. So if my needs are more complicated 328 00:17:09,525 --> 00:17:13,004 Speaker 2: and my needs include pretty much all seven aspects I 329 00:17:13,015 --> 00:17:16,555 Speaker 2: spoke about right, which adds home loan, my mortgage, my 330 00:17:16,564 --> 00:17:21,515 Speaker 2: investment account, my insurance needs and hence more traditional banks 331 00:17:21,525 --> 00:17:26,524 Speaker 2: actually incentivize very well. If you are a wholesome customer 332 00:17:26,535 --> 00:17:29,294 Speaker 2: where you're using all the services or bits and pieces 333 00:17:29,305 --> 00:17:31,625 Speaker 2: of all the services and there are savings accounts that 334 00:17:31,635 --> 00:17:33,194 Speaker 2: can give you up to 7%. 335 00:17:33,405 --> 00:17:35,744 Speaker 1: You can obviously opt not to do that right to 336 00:17:35,755 --> 00:17:37,284 Speaker 1: stay within the same ecosystem. 337 00:17:37,511 --> 00:17:39,942 Speaker 1: Is there something to be said about the benefit of 338 00:17:39,952 --> 00:17:42,342 Speaker 1: going to different banks for different needs? So for example, 339 00:17:42,352 --> 00:17:45,972 Speaker 1: my salary is credited into one account with one bank 340 00:17:45,982 --> 00:17:48,322 Speaker 1: and then my investment account is with another bank and 341 00:17:48,332 --> 00:17:50,120 Speaker 1: so on and so forth. Is there any value to 342 00:17:50,131 --> 00:17:50,420 Speaker 1: that as 343 00:17:50,432 --> 00:17:55,332 Speaker 2: well? 100%? And it all comes down to what incentives 344 00:17:55,342 --> 00:17:58,342 Speaker 2: the banks are actually giving away to give you a very, 345 00:17:58,352 --> 00:18:02,852 Speaker 2: very simple example. There are banks which are simply incentivizing 346 00:18:02,862 --> 00:18:05,572 Speaker 2: you for putting their money in the savings account and 347 00:18:05,667 --> 00:18:08,318 Speaker 2: they don't expect you to transact. They, they don't expect 348 00:18:08,328 --> 00:18:11,058 Speaker 2: you to put your salary credits on it, but simply 349 00:18:11,068 --> 00:18:14,548 Speaker 2: incentivize you on the quantum of money that you're actually 350 00:18:14,558 --> 00:18:18,558 Speaker 2: putting in right now. That is a great account for 351 00:18:18,568 --> 00:18:21,008 Speaker 2: me as a savings account. I was just thinking that 352 00:18:21,338 --> 00:18:23,848 Speaker 2: I don't want to touch that money. It's my emergency fund. 353 00:18:24,138 --> 00:18:27,088 Speaker 2: I don't want to transact. Why wouldn't I put it 354 00:18:27,098 --> 00:18:28,667 Speaker 2: in a bank where I can earn a little bit 355 00:18:28,678 --> 00:18:31,889 Speaker 2: of interest rather than in the consolidated bank, which is 356 00:18:31,898 --> 00:18:33,609 Speaker 2: not incentivizing, correct. 357 00:18:33,936 --> 00:18:37,836 Speaker 2: So this is where spending a little bit of time 358 00:18:37,855 --> 00:18:42,345 Speaker 2: on these platforms, learning about the options can actually save 359 00:18:42,355 --> 00:18:45,595 Speaker 2: you a lot of money and don't forget this is 100% 360 00:18:45,605 --> 00:18:45,906 Speaker 2: risk 361 00:18:45,916 --> 00:18:48,875 Speaker 1: free. Yeah, and it's not just saving you money, it's 362 00:18:48,885 --> 00:18:52,755 Speaker 1: making you money in some instance. Indeed. Yeah. Ok. So 363 00:18:52,765 --> 00:18:54,845 Speaker 1: you've talked about the fees and charges that need to 364 00:18:54,855 --> 00:18:57,095 Speaker 1: be aware of. Can we expand a little bit more 365 00:18:57,105 --> 00:18:58,875 Speaker 1: on that? What are the kinds of charges that we 366 00:18:58,885 --> 00:19:01,025 Speaker 1: need to look out for when we're considering and shopping 367 00:19:01,036 --> 00:19:02,115 Speaker 1: around for a bank account? 368 00:19:02,510 --> 00:19:07,530 Speaker 2: The most fundamental and basic one is account fee. Now 369 00:19:07,540 --> 00:19:10,479 Speaker 2: most banks you would see will waive off the account 370 00:19:10,489 --> 00:19:15,569 Speaker 2: fee unless your minimum balances drop under a certain level. 371 00:19:15,800 --> 00:19:19,969 Speaker 2: So you need to be very well aware of that. Right. 372 00:19:20,160 --> 00:19:23,560 Speaker 2: So that is most basic, the other fees that comes 373 00:19:23,569 --> 00:19:26,319 Speaker 2: in and I'll move more into the wealth accounts, 374 00:19:26,511 --> 00:19:31,171 Speaker 2: priority banking accounts. There is a number of fees right. 375 00:19:31,261 --> 00:19:35,011 Speaker 2: There will be an account management fee. There could be 376 00:19:35,021 --> 00:19:39,291 Speaker 2: fees on buying and selling of securities, there'll be fee 377 00:19:39,302 --> 00:19:44,361 Speaker 2: on foreign exchange transactions, um and conversions. Now, one of 378 00:19:44,371 --> 00:19:47,822 Speaker 2: the things that I've often seen is that when people 379 00:19:47,832 --> 00:19:50,371 Speaker 2: go for investment accounts, they do 380 00:19:50,513 --> 00:19:55,034 Speaker 2: don't necessarily understand that fee structure well enough because it 381 00:19:55,042 --> 00:19:57,943 Speaker 2: comes in that link that comes along with your account, 382 00:19:58,042 --> 00:19:58,254 Speaker 2: the 383 00:19:58,484 --> 00:20:00,413 Speaker 1: unsubscribe link it all the way at the bottom, it's 384 00:20:00,423 --> 00:20:02,904 Speaker 1: buried and then you have to find what language it's 385 00:20:02,913 --> 00:20:03,394 Speaker 1: written in. 386 00:20:03,404 --> 00:20:07,053 Speaker 2: Right? Indeed, indeed. And that's why again, using platforms that 387 00:20:07,063 --> 00:20:10,173 Speaker 2: are supposed to help you with this, the platforms that 388 00:20:10,183 --> 00:20:13,853 Speaker 2: are helping you simplify the understanding of that fee. But 389 00:20:13,864 --> 00:20:14,394 Speaker 2: one of the simple 390 00:20:14,515 --> 00:20:16,156 Speaker 2: things I'd say is call up the bank and ask 391 00:20:16,166 --> 00:20:18,806 Speaker 2: them very clearly. And and they will tell you what 392 00:20:18,816 --> 00:20:21,355 Speaker 2: are all the fees that I'm paying and compare those 393 00:20:21,365 --> 00:20:25,055 Speaker 2: fees as well. Now, less crucial in a savings account 394 00:20:25,066 --> 00:20:27,776 Speaker 2: because in savings accounts are very simple, very standard as well, 395 00:20:27,786 --> 00:20:31,025 Speaker 2: very standard, very simple, but definitely very crucial when you 396 00:20:31,036 --> 00:20:32,505 Speaker 2: go into wealth accounts or investment 397 00:20:32,515 --> 00:20:35,555 Speaker 1: accounts. Ok. That's a very good reminder actually, for us 398 00:20:35,566 --> 00:20:38,406 Speaker 1: to really ask the right questions and not just blindly 399 00:20:38,517 --> 00:20:41,017 Speaker 1: sign up on the dotted line. So a big reason 400 00:20:41,027 --> 00:20:43,177 Speaker 1: a lot of my peers tend to choose a particular 401 00:20:43,186 --> 00:20:45,797 Speaker 1: bank is to open an account that has nothing to 402 00:20:45,807 --> 00:20:47,807 Speaker 1: do with finances. And we touched a little bit on 403 00:20:47,817 --> 00:20:52,637 Speaker 1: this earlier and that's convenience. My question is, how big 404 00:20:52,647 --> 00:20:55,677 Speaker 1: of a factor is this when it comes to choosing 405 00:20:55,686 --> 00:20:59,218 Speaker 1: an account? How important is this consideration? You know, having 406 00:20:59,317 --> 00:21:02,317 Speaker 1: the range of services, the online access, et cetera? 407 00:21:02,828 --> 00:21:04,978 Speaker 2: I think it's very critical, right? I think it's very 408 00:21:04,988 --> 00:21:06,957 Speaker 2: critical in today's world because 409 00:21:07,520 --> 00:21:11,430 Speaker 2: we do need to remind ourselves that there is a 410 00:21:11,439 --> 00:21:15,829 Speaker 2: functional need we need to fulfill with our banks, right? 411 00:21:15,959 --> 00:21:20,010 Speaker 2: There is an everyday need that everyday need of making payments, 412 00:21:20,020 --> 00:21:24,630 Speaker 2: that everyday need of receiving payments of splitting bills with 413 00:21:24,640 --> 00:21:29,339 Speaker 2: friends of needing cash to make emergency payments. I think 414 00:21:29,349 --> 00:21:33,790 Speaker 2: convenience plays a very, very crucial part where it comes 415 00:21:33,800 --> 00:21:35,669 Speaker 2: down to again is understanding 416 00:21:36,656 --> 00:21:42,926 Speaker 2: that how are you splitting between convenience and return? Exactly right. 417 00:21:43,086 --> 00:21:45,865 Speaker 2: And that's where I would go back to splitting my 418 00:21:45,875 --> 00:21:49,244 Speaker 2: money into multiple accounts to say there are accounts which 419 00:21:49,255 --> 00:21:52,586 Speaker 2: are paying me a higher return, but I have to 420 00:21:52,595 --> 00:21:56,826 Speaker 2: sacrifice convenience. I'm going to put in my emergency funds there. 421 00:21:56,836 --> 00:21:59,245 Speaker 2: I'm not going to put in my daily usage funds. 422 00:21:59,255 --> 00:22:01,946 Speaker 2: But if for my current account usage for my daily 423 00:22:01,955 --> 00:22:03,984 Speaker 2: usage convenience does play a 424 00:22:04,082 --> 00:22:06,562 Speaker 2: critical part. So one of the things that I would 425 00:22:06,571 --> 00:22:08,891 Speaker 2: do because I look at my bank accounts on an 426 00:22:08,901 --> 00:22:11,342 Speaker 2: annual basis. Right. I would review and I will see 427 00:22:11,352 --> 00:22:13,061 Speaker 2: whether I have the right accounts. Am I making the 428 00:22:13,071 --> 00:22:16,802 Speaker 2: best decisions? And I would open the account? I would 429 00:22:16,811 --> 00:22:21,381 Speaker 2: try out the online banking. Right. And the convenience factor, 430 00:22:21,391 --> 00:22:24,581 Speaker 2: especially around how easy it is for me to transfer 431 00:22:24,592 --> 00:22:27,071 Speaker 2: funds in and out of the banks, how intuitive it 432 00:22:27,082 --> 00:22:29,982 Speaker 2: is for me. And I have had instances where I 433 00:22:29,991 --> 00:22:32,351 Speaker 2: didn't like the online banking and I actually canceled 434 00:22:32,517 --> 00:22:34,767 Speaker 2: my account and I and I called up the bank 435 00:22:34,777 --> 00:22:36,537 Speaker 2: and I told them I said, look, the only reason 436 00:22:36,547 --> 00:22:38,988 Speaker 2: I'm canceling is I actually don't like the interface. I 437 00:22:38,998 --> 00:22:41,937 Speaker 2: don't find it useful for me and hence, I don't 438 00:22:41,946 --> 00:22:43,157 Speaker 2: think it serves my purpose. 439 00:22:43,167 --> 00:22:46,157 Speaker 1: Wow. So you have actually canceled accounts because you just 440 00:22:46,167 --> 00:22:49,858 Speaker 1: did not like the way it worked. I think that's 441 00:22:49,868 --> 00:22:53,598 Speaker 1: a valid reason to leave the bank in that respect. 442 00:22:53,608 --> 00:22:57,387 Speaker 1: And along the same vein then is the reputation of 443 00:22:57,397 --> 00:23:00,598 Speaker 1: the bank equally important here because I'm thinking about 444 00:23:00,754 --> 00:23:04,234 Speaker 1: the emergence of digital banks, right? With the emergence of 445 00:23:04,244 --> 00:23:08,484 Speaker 1: digital options. Now, I'm thinking about the reputation of a 446 00:23:08,494 --> 00:23:11,754 Speaker 1: bank and how credible and crucial it is when making 447 00:23:11,763 --> 00:23:15,683 Speaker 1: that decision because I'm not just putting in $50 100 dollars, 448 00:23:15,713 --> 00:23:19,244 Speaker 1: $1000 in there. I'm talking about copious amounts of money. 449 00:23:19,273 --> 00:23:19,353 Speaker 1: I 450 00:23:19,923 --> 00:23:24,053 Speaker 2: think in that aspect we are quite fortunate that the 451 00:23:24,063 --> 00:23:28,274 Speaker 2: MA S as a regulator is very, very stringent, right? 452 00:23:28,504 --> 00:23:29,013 Speaker 2: And 453 00:23:29,270 --> 00:23:32,750 Speaker 2: it is one of the best regulators across the world. 454 00:23:32,949 --> 00:23:35,939 Speaker 2: So I think two things there, one, the very fact 455 00:23:35,949 --> 00:23:36,369 Speaker 2: that 456 00:23:36,729 --> 00:23:41,439 Speaker 2: these financial institutions are licensed by MA S gives us 457 00:23:41,449 --> 00:23:44,550 Speaker 2: a lot of credibility. So personally, for me, I don't 458 00:23:44,560 --> 00:23:48,810 Speaker 2: feel that my money is at risk. Right. Secondly, the 459 00:23:48,819 --> 00:23:51,760 Speaker 2: ST IC, as I mentioned before, that all our money 460 00:23:51,770 --> 00:23:56,209 Speaker 2: is guaranteed up to $75,000 or, or $100,000. Uh from 461 00:23:56,219 --> 00:23:58,650 Speaker 2: first of April, I think that is a reasonable amount 462 00:23:58,660 --> 00:24:03,979 Speaker 2: of insurance. Now, while we have seen big banks collapse in, 463 00:24:03,989 --> 00:24:05,829 Speaker 2: in the US, we saw in Europe 464 00:24:06,199 --> 00:24:10,399 Speaker 2: in Switzerland recently, while I don't expect any of that 465 00:24:10,410 --> 00:24:13,449 Speaker 2: such thing to happen in Singapore or actually in most 466 00:24:13,459 --> 00:24:17,390 Speaker 2: parts of Asia where banking systems are pretty advanced. But 467 00:24:17,400 --> 00:24:19,530 Speaker 2: I think it gives me a lot of credibility that 468 00:24:19,540 --> 00:24:22,560 Speaker 2: MA s is very stringent. It's very stringent in giving 469 00:24:22,569 --> 00:24:27,060 Speaker 2: digital banking licenses. It's very stringent in the ongoing compliance 470 00:24:27,069 --> 00:24:30,229 Speaker 2: and regulation that everybody has to deal with and abide 471 00:24:30,239 --> 00:24:32,968 Speaker 2: by and that gives us a lot of confidence. So 472 00:24:32,979 --> 00:24:34,920 Speaker 2: I think we can be not careless, 473 00:24:35,150 --> 00:24:38,199 Speaker 2: but absolutely go for the features and I have a 474 00:24:38,209 --> 00:24:39,260 Speaker 2: lot of trust in the system. 475 00:24:39,270 --> 00:24:41,319 Speaker 1: You know, you're right, you're right in saying that by 476 00:24:41,329 --> 00:24:43,929 Speaker 1: virtue of the fact that it's very stringent rules and 477 00:24:43,939 --> 00:24:48,030 Speaker 1: regulations to manage any risk to customers. It really makes 478 00:24:48,040 --> 00:24:50,930 Speaker 1: us spoiled for choice. Like we have the we have 479 00:24:50,939 --> 00:24:54,449 Speaker 1: the opportunity to for the lack of a better description 480 00:24:54,469 --> 00:24:58,449 Speaker 1: play around and experiment with different types of accounts including 481 00:24:58,459 --> 00:25:01,329 Speaker 1: digital banks. So my final question then to you is 482 00:25:01,339 --> 00:25:04,188 Speaker 1: while we're on the digital vein here, 483 00:25:04,650 --> 00:25:08,310 Speaker 1: is there a need then for digital wallets and investment 484 00:25:08,319 --> 00:25:11,209 Speaker 1: accounts and platforms like stash or sci or and da 485 00:25:11,920 --> 00:25:16,270 Speaker 1: when banks these days have offered the very same functions, 486 00:25:17,010 --> 00:25:17,680 Speaker 1: do we need one? 487 00:25:17,689 --> 00:25:22,030 Speaker 2: Then I would always say that we always need more products, right? 488 00:25:22,040 --> 00:25:23,790 Speaker 2: Why not? Why not? 489 00:25:24,219 --> 00:25:28,879 Speaker 2: Right. Because as consumers, we should have more choices, the 490 00:25:28,890 --> 00:25:32,390 Speaker 2: more choices we have the better decisions we can make. 491 00:25:32,479 --> 00:25:36,079 Speaker 2: So I welcome competition. I think competition is great. It 492 00:25:36,089 --> 00:25:40,280 Speaker 2: is healthy. Let's not forget that a lot of traditional 493 00:25:40,290 --> 00:25:42,119 Speaker 2: banks have now 494 00:25:42,810 --> 00:25:47,869 Speaker 2: improve their platforms because of the challenges, right? 495 00:25:47,969 --> 00:25:48,760 Speaker 1: That's the way to look at 496 00:25:48,770 --> 00:25:51,209 Speaker 2: it. Yeah, I mean, for years they were dominant. I mean, 497 00:25:51,219 --> 00:25:54,438 Speaker 2: I don't know, refresh my memory, but biggest breakthrough in 498 00:25:54,449 --> 00:25:59,170 Speaker 2: technology in banking before the digital banks was what? ATM 499 00:26:00,010 --> 00:26:03,010 Speaker 1: Exactly. And then when digital banking came on our phones 500 00:26:03,020 --> 00:26:05,589 Speaker 1: like wow, I can do this on my phone now. Correct? 501 00:26:05,599 --> 00:26:08,500 Speaker 1: And then all these other options came up. All these 502 00:26:08,510 --> 00:26:12,750 Speaker 1: other functions were introduced by competitors, as you said, and 503 00:26:12,760 --> 00:26:14,800 Speaker 1: now they are giving the big banks a run for 504 00:26:14,810 --> 00:26:15,270 Speaker 1: their money. 505 00:26:15,569 --> 00:26:17,869 Speaker 2: And I think as a consumer, I love it as 506 00:26:17,880 --> 00:26:21,109 Speaker 2: a business owner. I love it because I want that 507 00:26:21,119 --> 00:26:25,890 Speaker 2: innovation to continue this will push the innovators to innovate 508 00:26:25,900 --> 00:26:29,459 Speaker 2: even further, which will push the traditional banks to follow 509 00:26:29,469 --> 00:26:32,869 Speaker 2: suit and maybe even try to beat them in some aspect. 510 00:26:32,880 --> 00:26:33,349 Speaker 2: So why 511 00:26:33,359 --> 00:26:35,550 Speaker 1: not? But don't you think though that it will lead 512 00:26:35,560 --> 00:26:38,569 Speaker 1: to option paralysis for consumers? 513 00:26:38,579 --> 00:26:40,900 Speaker 2: Well, that's where we come in. That's where businesses like 514 00:26:40,910 --> 00:26:42,540 Speaker 2: ours really 515 00:26:42,635 --> 00:26:47,694 Speaker 2: into picture because our job is to make financial decisions 516 00:26:47,704 --> 00:26:51,814 Speaker 2: easier for people to see through all the complexity and 517 00:26:51,824 --> 00:26:56,135 Speaker 2: help people make decisions based on their specific needs. So 518 00:26:56,145 --> 00:26:59,295 Speaker 2: I think as long as platforms like these exist that 519 00:26:59,305 --> 00:27:03,704 Speaker 2: can help people make decisions, the choices are good. All right. 520 00:27:03,714 --> 00:27:06,125 Speaker 1: And that's exactly what you've come on the Money Talks 521 00:27:06,135 --> 00:27:07,954 Speaker 1: podcast to do and you've done a very good job 522 00:27:07,964 --> 00:27:09,625 Speaker 1: of it. I might add Prashant, 523 00:27:09,859 --> 00:27:12,410 Speaker 1: we're so glad to be able to have you break 524 00:27:12,420 --> 00:27:14,469 Speaker 1: this down for us. Thank you so much for coming 525 00:27:14,479 --> 00:27:15,900 Speaker 1: on the Money Talks podcast. It's been 526 00:27:15,920 --> 00:27:16,819 Speaker 2: my pleasure. Thank 527 00:27:16,869 --> 00:27:19,359 Speaker 1: you. I hope you had fun. Thanks a big thank 528 00:27:19,369 --> 00:27:22,160 Speaker 1: you to you too. Listener. If you liked this episode, 529 00:27:22,170 --> 00:27:25,010 Speaker 1: you know, show us, leave us a comment or a 530 00:27:25,114 --> 00:27:28,014 Speaker 1: dating on wherever you get your podcasts. Well, if you 531 00:27:28,025 --> 00:27:30,204 Speaker 1: want to find us in case you don't know, we're 532 00:27:30,214 --> 00:27:34,135 Speaker 1: streaming on Apple podcasts and Spotify as well as youtube 533 00:27:34,145 --> 00:27:37,185 Speaker 1: for Money Talks. The team is Joanne Chan Tiffany Ang 534 00:27:37,265 --> 00:27:40,114 Speaker 1: Christina Roberts win. I'm Andrea Heng.