NTUC Income establishing financial advisory subsidiary, Latest Business News - The New Paper

NTUC Income establishing financial advisory subsidiary

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The subsidiary will also sell other insurers' products

NTUC Income is establishing a financial advisory subsidiary - Infinitum Financial Advisory, to be led by the insurer's head of agency, Mr Ronald Tan.

Despite being owned by Income, Infinitum will also sell other insurers' products and will not impose a minimum sales requirement on Income products.

The move follows Income's acquisition of Elpis Financial - a pioneer-licensed financial advisory firm - and the acquisition of another firm Financial Dynamics, slated to be completed by the end of next month.

Income did not comment on the cost of the acquisitions.

More than 80 Elpis financial adviser representatives will join Infinitum, which will take over the management of the former's clients, products and services.

Clients will continue to be served by their current representatives with no disruption or compromise in product and service options, Income said.

The same applies to Financial Dynamics once the acquisition is concluded. This will lead to 12 of the company's representatives joining Infinitum, it said.

Through the acquisitions, Income is looking to leverage the firms' existing pool ofrepresentatives, clients, and products and services.

In turn, Elpis and Financial Dynamics will benefit from Income's "strong market reputation, financial stability and high operational efficiency" for economies of scale.

On the decision to be a multi-product provider, Mr Tan said that such an approach would give Infinitum a "competitive edge" in the industry.

"Being 'non-tied', we believe will motivate a sharper focus on needs-based financial solutions and drive a higher level of trust in Infinitum to fulfil one's financial needs," he added.

Income foresees Infinitum's business model becoming a "lever" for more attractive financial solutions and higher-quality financial services as it levels the playing field for solutions providers.

Its portfolio will include products from other insurance providers, and a range of investment solutions found on wealth management platforms.

On top of leveraging Income's training and development programmes to aid financial advisory representatives' career and professional development, Infinitum will be able to access Income's digitalisation road map.

"The intent is to have Infinitum's representatives contribute to the growing strength of Income's digital sales force - one that engages customers effectively and meaningfully in this digital age," Mr Tan added.

Income chief executive Andrew Yeo said the setting up of Infinitum is part of Income's strategy to extend its distribution footprint even as it sharpens its digital capabilities and offerings.

"Be it diversity in financial solutions or ways to engage with brands and organisations, customers today want choice and flexibility," Mr Yeo added.