How iFast learnt to think beyond Singapore

iFast Corporation, a digital wealth management platform founded in 2000, has aggressively pursued a long-term strategy focused on global expansion. Rather than focusing on short-term growth, chairman, group CEO and co-founder Lim Chung Chun believed that geography should not limit the company's ambitions. This philosophy guided iFast through its evolution, starting from its inception as a unit trust distribution platform to its current status as a truly global banking and wealth management platform operating across multiple countries.

Realizing that investors wanted access to more than just unit trusts, iFast gradually broadened its offerings to include stocks, ETFs, bonds, managed portfolios, and banking services. This transition took time, with iFast only entering stockbroking and ETFs 15 years after its founding. The company's steady expansion, culminating in its 2014 SGX listing, enabled it to access capital for continued growth.

Mr Lim also noted that opening more offices was not the most efficient way to build an international business. Instead, iFast adopted a truly global model, operating from a few key centers while attracting customers worldwide. This approach was inspired by private banking, which traditionally served a small group of high-net-worth clients but could be adapted to cater to the larger mass affluent segment through a digital platform.

While financial services still require local licensing and regulatory compliance, technology is making this model increasingly feasible. AI, for instance, is being used to provide 24/7 customer support and multilingual assistance, enabling iFast to efficiently serve a growing international clientele. The acquisition of a fully licensed UK bank also exemplified iFast's commitment to long-term strategy, even if it appeared counterintuitive given the UK bank's loss-making status at the time.

Mr Lim saw this move as essential to building a foundation for a truly global wealth management platform.

For iFast, creating value is only part of the equation. Communication of the company's long-term strategy is equally important, as investors want to see where the business is headed. Mr Lim emphasized that investors are more receptive to long-term opportunities when companies clearly articulate their vision and consistently execute it. iFast exemplifies this approach by publishing rolling multi-year strategic plans, aiming to reach S$100 billion in assets under administration by 2030.

Mr Lim believes that embracing a long-term mindset and communicating this perspective is crucial for Singapore companies to continue their growth trajectory.