Digital technologies and channels promise new growth opportunities as Hong Kong’s wealth managers look to meet fast-evolving client expectations – new Capco survey
74% of Hong Kong respondents say they are comfortable with AI guiding their wealth management decisions
Nine in ten respondents have increased their use of digital channels to access wealth management offerings over the past two years
HONG KONG, September 12, 2024 – A marked shift towards using digital channels to manage wealth and a willingness to embrace AI-guided wealth management are key themes to emerge from a new survey of 500 wealthy individuals in Hong Kong conducted by Capco, the global management and technology consultancy.
As the wealth management industry shifts further towards a hybrid ‘physical-plus-digital’ model, Capco’s survey reveals that 93% of respondents have increased their use of digital channels for wealth management purposes in the last two years, including 47% who say their use has increased ‘significantly’. Three-quarters of respondents (74%) say they are comfortable with AI guiding their wealth management decisions, including a quarter (25%) who are ‘extremely comfortable’ with the idea.
However, the survey – which polled individuals with minimum investable assets of US$100,000 and above – also found that traditional face-to-face meetings remain an important channel for managing wealth. Face-to-face meetings with wealth managers and advisors are employed by nearly half (45%) of all respondents, and are almost as popular among younger respondents (41% of those aged 19-34 years).
Published today, Capco’s 2024 Hong Kong Wealth Management Survey report offers detailed insights into how Hong Kong respondents are managing their wealth, how they choose and prefer to communicate about wealth management, where they turn for investment ideas, and their preferred balance of digital self-service and human interaction. The report provides recommendations to wealth managers as they position for success in their digitalization strategies and work to communicate more effectively with clients across multiple channels.
The report also compares and contrasts selected findings drawn from a separate survey of attitudes to wealth management across 1,000 respondents based in mainland China.
James Arnett, Managing Partner, APAC & Middle East at Capco, said: “Our latest Hong Kong survey underlines the accelerating adoption of, and demand for, digital channels and tools in wealth management. At the same time, it is clear that traditional aspects of wealth management – not least the ability to offer a personal, ‘high touch’ service – remain important to clients. By embracing a combined high touch/high tech approach that leverages the enhanced speed and efficiency offered by automation and technologies such as AI, Hong Kong’s wealth managers will be ideally positioned to offer a superior experience that will ensure long-term client satisfaction and loyalty.”
Hayley Haupt, Partner and APAC Wealth Management Lead at Capco, said: “Technology is driving change in respect of both client expectations and the competitive landscape, and while Hong Kong’s wealth management industry still has time to adapt, the pace of that change is only accelerating. There are challenges ahead, not least understanding how best to design and deliver a truly integrated hybrid or ‘phygital’ model that offers seamless experiences and a greater degree of flexibility in how clients are served and how they can plan for the future.”
Gaurav Mehra, Partner and APAC Head of Transformation at Capco, said: “As banks and insurers gear up to dominate the wealth segment, they will need to drastically transform customer journeys and their operating models. This will require a comprehensive transformation roadmap that takes into account emerging client behaviors, strategic platform considerations, and creative use of data, analytics and AI, as well as relevant change management strategies. That clarity of vision will be key as Hong Kong’s wealth managers prepare for future growth and success.”
Other key findings in Capco’s Hong Kong report include:
Self-serve via the internet (53%) and via mobile app (52%) are the most common channels used to manage wealth among our Hong Kong respondents.
When using an investment or wealth management service remotely, 39% of respondents prefer a hybrid model that combines digital self-service and human interaction.
75% of Hong Kong survey respondents say they manage at least part of their wealth themselves, while 55% use wealth managers and financial advisors, and 52% use robo-advisors.*
Respondents use a wide range of resources to look for investment advice and ideas, with 71% saying they conduct research online; this compares to 67% saying they use wealth managers and advisors.*
*Multiple responses permitted
Capco’s Hong Kong wealth management survey report can be found here.
Media contact
Hannah Polson, Cognito
capco@cognitomedia.com
About Capco
Capco, a Wipro company, is a global management and technology consultancy specializing in driving digital transformation in the financial services and energy industries. Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.
Capco’s latest survey of 500 Hong Kong respondents explores how they manage their wealth, their attitudes to innovations such as AI-guided wealth management, and their desired balance of high touch and high tech services.