OCBC Bank Malaysia says it sees double digit growth from sales of its dual currency investments (DCI) due to the potential for higher returns than current fixed-income deposits.
With tenures of between one week and a month, the DCI is a viable option for investors looking to make short-term investments, said OCBC wealth management head Ong Shi Jie, adding that more customers were now aware of the short-term non-principal protected investment.
"The low-interest-rate environment in Malaysia during the sub-prime crisis in 2009 helped spur the hunt for alternatives and propel the popularity of the DCI. As the equity markets recovered and interest rates normalised in the last 12 months, the growth of DCIs has slowed. Still, we continue to be on expansion mode for this business," Ong said.
The products, which cater primarily to high net worth individuals, have been well-received with many customers returning for more after having benefited financially, said Ong, adding that OCBC Bank was able to customise a wide array of currency pairs to suit investor's preferred strike rate based on real-time spot rates.