Wealthy individuals in Hong Kong have shown a marked shift towards using digital channels to manage wealth and a willingness to embrace AI-guided wealth management, according to the findings of a survey of 500 rich individuals in the territory conducted by Capco, a global management and technology consultancy.
As the wealth management industry shifts further towards a hybrid ‘physical-plus-digital’ model, Capco’s “2024 Hong Kong Wealth Management Survey” report 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 $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).
Capco managing partner, APAC and Middle East James Arnett said: “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.”
Capco partner and APAC head of transformation Gaurav Mehra 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 behaviours, 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.”
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.
Other key findings in Capco’s Hong Kong report include:
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The Internet (53%) and mobile apps (52%) are the most common channels used to manage wealth among Hong Kong respondents.
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Online chats with wealth managers and advisors are also a popular channel (46%).
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As a comparison, in mainland China, online chats with wealth managers and advisors are the most common channel (61%), while 57% use telephone and video calls. At the same time, 55% also employ face-to-face meetings with wealth managers and advisors.
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When using an investment or wealth management service remotely, 39% of respondents prefer a hybrid model that combines digital self-service and human interaction.
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This compares to 33% who prefer purely digital self-service and 27% who prefer solely human interaction.
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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.*
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As a comparison, 66% of respondents in mainland China say they manage all or part of their wealth themselves, while 58% use wealth managers and advisors and 41% 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.
Other sources include social media (60%), friends, peers and family (55%) and books offering investment tips and insights (51%).
Capco’s Hong Kong wealth management survey report can be found here.