Despite the rapid rise of robo-advisory platforms, almost all respondents to the survey in Hong Kong (91%) and Singapore (94%) said receiving face-to-face financial advice is important to them, while honesty — rather than financial returns — was the most important trait for a professional financial adviser, said 59% of Hong Kong and 63% of Singapore people surveyed.
“A key finding is the importance of building trust, which goes some way to explaining why robo-advisory platforms are unlikely to ever supplant face-to-face relationships. While technological advancements can play a great role in facilitating the client experience, they should not replace trusted and clearly valued face-to-face advice,” said Matthew Deeprose, head of business, St James’s Place Hong Kong.
That desire has persisted during the past few months of social distancing and lockdowns prompted by the Covid-19 pandemic, he told FSA, but with most physical meetings replaced by digital or virtual link-ups.
The survey of 2,064 people between the ages of 25-54 with a minimum annual income of S$70,000/HK$400,000 was conducted in February and March 2020 in Hong Kong and Singapore.
Although professional advisors received the highest mention in their top three sources for financial guidance, more Hong Kongers with annual household income of at least HK$1m ($128,000) prefer to turn to family members (26% compared with 17% for professional advisors). In contrast, more Singaporeans (28%) seek assistance from professionals than from family members.
“While family continues to be an important source of financial advice, the survey finds a growing appetite for trusted advice amid increasing market volatility and continued improvement in industry standards,” said Deeprose.
Indeed, around half of respondents in Hong Kong (52%) and Singapore (51%) believe they could have achieved better investment outcomes in the past five years if they had engaged a financial adviser, while 62% in Hong Kong and 70% in Singapore would consider engaging a financial adviser to manage investments on their behalf.
However, many remain put off by costs, with 61% in Hong Kong and 57% in Singapore claiming fees are too expensive.
Yet, of the respondents who did receive financial advice, an overwhelming 99% of Hong Kongers and 98% of Singaporeans found it to be useful.
The main areas where respondents in Hong Kong and Singapore feel they need more financial advice are similar. These are investments (86% and 87% respectively), property and mortgages (74% and 80%) and retirement planning (73 and 78%).
Only 11% of Hong Kongers and 12% of Singaporeans said that robo-advisory platforms were their preferred mode of advice.
But perhaps inevitably, the least useful resource for help, respondents in both territories agreed, is the media.
