Grab Acquires Singapore Robo-Advisory Firm to Enhance Fintech Services

Grab Holdings announced on Tuesday its acquisition of Bento Invest, an innovative robo-advisory startup based in Singapore, aimed at providing retail wealth management solutions to its clientele. The financial details of the deal were not disclosed.
Bento will undergo a rebranding to GrabInvest, with its product offerings set to debut on Grab’s platform within the first half of the upcoming year, as noted in the company’s press release.
This strategic acquisition seeks to address the needs of the underbanked population in Southeast Asia, many of whom struggle to access efficient investment tools or find them prohibitively expensive.
“In Southeast Asia, there is a significant gap in access to affordable wealth management products and retirement planning solutions for the majority. In light of the current volatile and uncertain economic climate, it is crucial for Southeast Asians to obtain the tools and insights necessary to protect their futures by sustainably building wealth for themselves and their families,” commented Reuben Lai, the Senior Managing Director of Grab Financial, the fintech division of the company.
Historically, wealth management services have been reserved for those capable of affording hefty investment management fees, with substantial investment minimums required by firms to generate adequate returns.
However, this landscape is evolving, propelled by advancements in artificial intelligence and the rise of robo-advisors, which are democratizing investment advisory by making it not only cost-effective but also easily comprehensible and widely accessible.
In the U.S., banks have also embraced robo-advisory services primarily targeting millennials who prefer managing their finances through smartphones. In contrast, the robo-advisory market in Asia focuses on individuals lacking access to any financial services.
Fintech in Asia
The financial technology sector has remarkably transformed the banking landscape in Asia, arguably even more so than in Western countries.
Among the 400 million adults residing in Southeast Asia, only 104 million are considered fully “banked,” possessing complete access to financial services. This leaves a staggering 198 million people without even basic access to financial institutions, as revealed by a collaborative study conducted by Google, Temasek, and Bain & Company.
Fundamental challenges such as high infrastructure costs, a lack of public registries, unreliable credit information, and stringent financial regulations have hindered traditional banks and insurers from effectively entering the market.
In response, fintech companies have stepped in, leveraging Asia’s swift technological advancements to flourish into a multi-billion dollar industry catering to both tech-savvy millennials and those without documentation.
Predictions indicate that digital payments in Asia are set to surpass $1 trillion by 2025, comprising nearly half of the region’s spending. The e-wallet market is projected to experience even more rapid growth, soaring from $22 billion in 2019 to a staggering $114 billion by 2025, based on findings from the Google joint study.