March 14, 2019
The Challenges and Opportunities Hitting Hong Kong Wealth Management
Private wealth management is rising in popularity throughout the world, and Hong Kong has proven itself to be a true hotspot: KPMG and Private Wealth Management Association’s third annual Hong Kong Private Wealth Management Report claims that the industry’s assets under management (AUM) will double in five years.
Unsurprisingly, technology is expected to be a mainline for growth. Still, most of the wealth management executives surveyed believe that the current digital capabilities aren’t matching with their high net worth clients’ needs.
To keep up with competition, the wealth management industry in Hong Kong has begun majorly investing in digital solutions.
The Onboarding Paradox
How long it takes to onboard a client has a big impact on customer experience and whether a client chooses to stay or go. The survey revealed that the average onboarding time in Hong Kong has actually increased from 30 days in 2016 to 40 days in 2018. This is probably because of increasing regulations that increase KYC complexity.
Looking across the entire customer journey, it’s not a shock that technology is changing customer expectations. Because of how far technology has come in so many industries, customers are increasingly expecting a better, more seamless experience from financial service institutions, and that includes faster onboarding, easier access to information, and personalized services when interacting with their wealth managers.
As many as 58% of wealth managers surveyed expect that 10-30% of today’s face-to-face interactions will occur via digital channels by 2023. According to the report, it would fundamentally change a relationship manager’s role.
The CX Sweet Spot
While the report results show that digital communication is taking over and it may even sound like face-to-face interactions will soon be obsolete because everything will become digitalized, this isn’t the case. People need to foster a more meaningful connection to build trust and loyalty.
At our last Thought Leadership Series on the digital future of wealth management, our panel of experts clarified that high net worth individuals (HNWIs) don’t want to get everything through digital channels; there’s still an undeniable desire for human interaction.
The sweet spot lies in a combination of artificial and emotional intelligence—the hybrid service model. This is how wealth managers can get closer to next-gen clients.
The Client Lifecycle Management Starting Line
Where do you start? By digitalizing your onboarding processes (including the middle and back office), using intelligent process automation to decrease friction and free up relationship managers’ time for more value-adding activities.
According to the report, another great technology option that’s growing in popularity in Hong Kong is a KYC utility, where client information is stored and shared across institutions. This will support more complex KYC processes, and you can potentially make use of blockchain technology as well.
As a final note, don’t forget to look beyond onboarding and envision the full customer lifecycle to attract and serve HNWIs. Create a 360-degree customer view by gathering available data that includes demographical information, contact details, and behavioral data, as well as diving deeper into predictive analytics.
Use all of this knowledge to understand the full data landscape and build a strong digital foundation for your business.
Madli LillemägiMarketing Manager EMEA and APACAppway