How to build a Robo Advisor: Expert Step-by-Step Guide

Globally, the number of robo advisor users is expected to reach 34 million by 2029.

 

In Singapore, adoption is even stronger!

 

Over 59% of investors already use robo platforms, with assets under management (AUM) set to surpass SGD 5.45 billion in 2025.

 

But here’s the catch: Most robo-advisors in Singapore still feel like MVPs – overloaded with jargon, clunky risk quizzes, and zero emotional intelligence in down markets. This makes them underdeliver where it matters: trust, clarity, and user experience.

 

If you’re asking how to build a robo advisor that actually works in Singapore, you need more than just good AI algorithms. You need to design for compliance, speak the language of first-time investors, and remove friction at every step.

 

This guide breaks down the step-by-step process of building a robo advisor with design and development strategies that win the trust of Singaporean users.

 

Let’s dive in.

 

What Is a Robo-Advisor and How Does It Work?

A robo-advisor is an automated platform that manages investments using AI in wealth management.

 

In Singapore, a typical robo-advisor asks users about their goals, risk appetite, and income – often via Singpass and MAS-compliant forms. Based on this data, it builds a personalized portfolio, usually made up of ETFs or unit trusts, and rebalances it automatically.

 

But smart robo-advisors don’t just allocate assets.

 

They are complete AI investment platforms that offer full-stack wealth management in Singapore – CPF/SRS portfolio support, tax optimization, human oversight, and emotionally intelligent nudges during market dips.

 

Some also assign licensed portfolio managers where needed, especially for high-net-worth users or complex investing strategies. In short, robo-advisors in Singapore are digital wealth managers – driven by AI, shaped by UX, and regulated by MAS.

 

How to Build a Robo Advisor for Singapore? 7 Step Guide

Building a robo advisory Singapore product isn’t just about leveraging wealth management AI. It’s about building a product layer that balances user trust, regulatory compliance, and seamless technology.

 

Here is the exact step-by-step approach on how to build a robo-advisor that covers UX research, discovery, design, and development.

 

1. Prioritize Discovery & UX Research

Thinking about how to build a robo advisor from scratch? Step 1 of this process is to get the problem right before you set out to design your robo advisor.

 

Market & Segment Mapping: Identify who you’re serving (e.g., first-time retail investors, mass-affluent professionals, HNW families). Capture goals like building a CPF nest egg, saving for an HDB down-payment, and generating passive income.

 

• Jobs-to-Be-Done Interviews: Capture real triggers and fears like “I don’t know how much to invest monthly” or “I’m afraid of market crashes.”
• Competitor & Category Tear-down: Audit leading robo-advisors and bank portfolios. Note onboarding time, Singpass use, CPF/SRS support, fee transparency, AI explainability patterns.
• Trust & Risk Signals Study: Test what reassures users most in a robo advisor app. It could be anything like “MAS-licensed,” providing custodian details, human oversight, and 2FA authentication.
• Information Architecture & Language Testing: Card-sort key concepts (goals, funding, CKA, re-balancing) and run quick readability checks with non-finance users.
• Prototype and Validate Key Flows: Build low- to mid-fidelity prototypes of your critical flows — like onboarding, risk profiling quiz, CPF/SRS account linking etc. Test with 5–7 users per round, measuring completion time, comprehension, and confidence uplift.
• Accessibility & Inclusivity: Aim for WCAG 2.2 AA standards. Write in plain English, and define financial jargon in-line for clarity.

2. Design Trust Through Compliance and Transparency

In Singapore, robo-advisors are regulated by the Monetary Authority of Singapore (MAS). This means the user experience itself should signal safety and compliance.

 

When compliance steps are designed to feel smooth and educational, they strengthen trust instead of creating friction in Fintech UX design.

 

• Quick Singpass Onboarding: Replace manual document uploads with Singpass MyInfo — Singapore’s national digital ID system that lets users share verified details (like NRIC, address, income) with one click. Endowus, for example, enables one-click KYC in minutes.
• Risk Profiling & Customer Knowledge Assessment (CKA): All robo-advisor platforms must assess a client’s financial situation and risk appetite. Use concise, interactive quizzes to assess such goals, risk appetite, and knowledge. For complex products, integrate MAS-mandated CKA seamlessly.
• Add Clear Disclosures: Besides opting for an explainable AI model, your app design should provide accessible explanations of its investment approach. This could mean anything from clear, readable portfolio summaries to transparent risk warnings. Eg – “Note: No prediction is 100% certain; there is still risk involved.”
• Asset Safety Assurance: Emphasize that funds are custodied under the user’s name and not pooled with the robo advisor. Clear in-app messaging (eg – “What happens to my money if this app disappears?”) helps calm the user to know their funds are protected if the platform ceases operations.
• Trust Signals: Reinforce safety at every step using MAS license icons, PDPA compliance labels, testimonials, or awards.

3. Incorporate Local Preferences

A robo-advisor should plug into the local financial infrastructure and cultural context to win Singapore users. This means leveraging the local tools and systems preferred by users and designing specifically for cultural needs to offer efficient wealth management in Singapore.

 

This is one of the key aspects to think of on how to build a robo advisor in Singapore –

 

• Design for CPF & SRS Integrations: Many Singaporeans invest in retirement savings through the Central Provident Fund (CPF) and Supplementary Retirement Scheme (SRS). Separate cash, CPF, and SRS portfolios with clear dashboards & filters for CPF-approved products so users know how each portion is doing.
• Integrate Local payment methods: Support PayNow, FAST, and GIRO transfers. These are trusted, fast, and already part of everyday life in Singapore.
• Design for Cultural Relevance: Offer portfolio options that reflect local Singaporean interests, such as income-focused REITs or ASEAN markets, with clear risk disclosures.
• Relatable Language: Use terms familiar to local users (like HDB for public housing) to make the experience relatable, and keep the UX in clear, simple English, the primary language for finance in Singapore.

4. Deliver A Seamless User Experience (UX)

A robo-advisor’s success often hinges on its user experience, especially as it uses wealth management AI algorithms. Investing can be intimidating, so the UX must simplify complexity and guide the user with a confident, friendly hand.

 

Here are fintech UX design best practices to follow when you consider how to build a robo advisor:

 

• Ease of Use: Keep screens uncluttered, use plain language, and replace jargon with meaning. For instance, instead of showing “Sharpe Ratio,” explain: “Your returns are strong relative to the risk you’re taking.”
• Personalized, Goal-Based Journeys: Personalize flows to life goals like retirement, education, or home ownership. Robo-advisors like StashAway personalize the experience and link portfolios around these life goals. For instance, show clear progress markers like “You’re 30% to your down-payment goal”
• Reassuring Dashboards: Highlight three essentials like total value, portfolio performance, and next steps the user needs to do in your personalized dashboard. Let users drill down if they want details, but don’t overwhelm the default view.
• Emotionally Intelligent Communication: When markets fall, avoid silence. A calm in-app note like, “Markets are down 5% today — this is normal in investing, and your portfolio is designed for the long term,” can stop panic withdrawals.
• Education Within UX: Provide tooltips, FAQs, and even micro-articles that explain terms like “re-balancing” or “ETF.” This reduces customer support load and empowers users.

5. Build Security Into Your Infrastructure

Behind every clean user interface is a system that must safeguard user data and withstand regulatory scrutiny.

 

In finance, a breach of trust can end a product overnight, so security and compliance are not optional extras – they are the foundation when you think about how to build a robo advisor.

 

• Two-Factor Authentication (2FA): Enable Singpass or OTPs to add trusted security without creating friction.
• MAS TRM Compliance: Follow Technology Risk Management (TRM) guidelines. These cover incident management, continuity planning, and audit logging.
• Full Audit Trails: Provide transparent transaction histories for deposits, withdrawals, trades, and fees. This reassures users and satisfies MAS oversight.
• PDPA Compliance: Include privacy dashboards that let users see and control how their data is used. Minimize permissions – for instance, don’t request access to contacts or location if it’s unnecessary.
• Licensed Broker Connectivity: Integrate with regulated brokers like UOB Kay Hian or Saxo. Ensure cost-efficient trading (eg – minimizing fees like using pooled trades where possible) because part of the robo promise is low cost.

 

This focus on secure & regional compliance is one of the key reasons why robo advisor platforms should partner with the best development company in Singapore.

6. Ongoing Monitoring & Reporting

Investors don’t just want automation – they want ongoing visibility and reassurance.

 

This stage is about maintaining transparency once funds are already at work.

 

• Automated Rebalancing: Over time, portfolios drift away from their target allocations as markets move. Re-balancing, whether scheduled (e.g., quarterly) or threshold-based (e.g., when allocations move 5% off target) — keeps the risk profile aligned.
• Performance Data: Provide both time-weighted (portfolio performance) and money-weighted (personal investor) returns. Add downloadable statements, dividend records, and fee breakdowns.
• Proactive Transparency: Use reporting not just to show data but to reassure users that their money is actively monitored and aligned to their risk profile.

 

7. Testing and Continuous Improvement

A robo-advisor is not a one-off build. Regulations evolve, markets change, and user expectations grow. Ongoing improvement is essential for any robo-advisory Singapore platform to stay ahead.

 

• User Testing: Regularly test onboarding, dashboards, and disclosures with Singapore users to validate trust and comprehension.
• Leverage MAS Regulatory Sandbox: MAS provides a FinTech Regulatory Sandbox — a controlled environment where innovative features can be tested with real users under regulatory oversight. This allows you to pilot innovative features in a safe, regulated environment before scaling.
• Data-Led Iteration: Monitor drop-offs, withdrawal rates, and user behaviors, then refine UX and product stability accordingly. Continuous iteration ensures the robo-advisor doesn’t stagnate and stays competitive.

Final Thoughts: The Real ROI of Robo-Advisors Is Trust

Too many robo-advisors get built like engineering projects – fast, compliant, and feature-complete.

 

But in wealth tech, the differentiator isn’t just the AI model or code.

 

It’s trust. And trust is designed.

 

If you want users to commit recurring deposits, share Singpass data, and ride out market dips, the robo advisor can’t just work. It has to reassure. Every interaction, screen, and copy choice needs to say: “Your money is safe here.”

 

That is why when you think about how to build a robo advisor, UX strategy and design cannot be a finishing layer – it’s your foundation.

 

At ProCreator, this is where we step in as a reliable robo advisor Singapore company trusted by fintech, SaaS, and enterprise teams across the globe. We help banking, fintech, and wealth management companies in Singapore design and build MAS-compliant, high-conversion robo-advisors right from research to rollout.

 

Let’s build a robo-advisor your users actually trust and your compliance team never questions.

 

Reach out for a consult with ProCreator today.

 

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