CGS-CIMB launched today a digital investment service targeted at millennials, offering eight asset classes across 30 exchanges in 25 markets.
ProsperUs aims to attract 10,000 investors in the next 12 months. With a minimum investment of $1,000, new customers who sign up between April to June 2021 stand a chance to receive between $280 and $880 worth of free tokens to offset their trading fees.
According to ProsperUs’ website, the service charges users with investable assets of $49,999 and below 0.12% on equity trades on the Singapore Exchange, with a minimum fee of $7. Fees are reduced to 0.10%, or minimally $6, with assets of $50,000 to $200,000; and further down to 0.08%, or minimally $6, with assets above $200,000.
ProsperUs charges a flat fee of US$5 for trades on the American Stock Exchange, the New York Stock Exchange and NASDAQ.
This is in contrast to new entrants like Tiger Brokers and moomoo, which are offering zero commissions on trades over a promotional period. Despite the competition, Carol Fong, Group CEO at CGS-CIMB, is undeterred.
“You have free-to-air television channels and paid streaming sites. If you apply that analogy to the financial sector, we are in a similar position. We provide a different experience. We are actually priced at the low end of the range [of brokerage fees]: enough to attract millennials but also to tell everyone that we have a differentiated service,” says Fong in a virtual conference.
“We have eight product classes and over 30,000 instruments, a lot more than the other providers. I think that speaks for itself,” she adds.
As part of CGS-CIMB’s Vision 2025 plan, the brokerage also aims to go public by 2025, says Fong. “That is a vision. Obviously, we need to get shareholders’ and regulatory approval. In terms of financials, we do have the track record to go for a listing, sooner rather than later is what I’m going for. It is my intention to start the process,” says Fong.
CGS-CIMB Securities International is a 50-50 joint venture between China Galaxy International Financial Holdings Limited, a wholly-owned subsidiary of China Galaxy Securities Co. Ltd., and CIMB Group Sdn. Bhd.
CGS-CIMB says it will launch the service in other Asian markets within the next 12 months, with particular plans for Malaysia. “We are definitely very excited to bring ProsperUs to our other offices, namely Malaysia. It’s an emerging economy and they definitely want access to global markets,” says Saw Ping May, founder of ProsperUs and group head of strategy and analytics at CGS-CIMB.
The brokerage is present in more than 20 countries, with a major presence in Singapore, Malaysia, Indonesia and Thailand.
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“The digitalisation of brokerages is accelerating with advancements in technology and an increasingly affluent younger generation. While there is wealth of expertise in established houses, its form as it stands today may not be optimal for younger investors,” says Fong in a press release.
“Leveraging on CGS-CIMB’s 40 years of industry experience in the financial industry, we are best placed to provide investment opportunities across the region that may not be otherwise available. I am excited about ProsperUs and its potential to become the preferred investment platform for empowering millennials to make better investment decisions for the long term,” says Fong.
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In August 2018, CGS-CIMB launched its robo-advisory platform, CGS-CIMB eWealth, in partnership with Saxo Bank subsidiary Saxo Capital Markets as well as WeInvest, a Singapore-based fintech firm.