Rich Hong Kong individuals are ready to embrace AI-guided wealth management and use digital channels, according to a survey of 500 wealthy individuals in the territory, conducted by Capco, a global management and technology consultancy owned by Wipro.
Capco’s 2024 Hong Kong Wealth Management Survey, published on Monday, found that 93% of respondents have already increased their use of digital channels for wealth management purposes during the past two years, including 47% who say their use has increased “significantly”.
Significantly, three-quarters of respondents (74%) said they are comfortable with AI guiding their wealth management decisions, including a quarter (25%) who are “extremely comfortable” with the idea.
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.
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 used by nearly half (45%) of all respondents, and are almost as popular among younger respondents (41% of those aged 19-34 years).
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.”
Other key findings in Capco’s Hong Kong report include:
Self-serve through the internet (53%) and via mobile app (52%) are the most common channels used to manage wealth among Hong Kong respondents. Online chats with wealth managers and advisers are also a popular channel (46%).
When using an investment or wealth management service remotely, 39% of respondents prefer a hybrid model that combines digital self-service and human interaction.
Three-quarters (75%) of respondents said they manage at least part of their wealth themselves, while 55% use wealth managers and financial advisors, and 52% use robo-advisors.
Finally, respondents use a wide range of resources to look for investment advice and ideas, with 71% saying they conduct research online; this compares with 67% saying they use wealth managers and advisors.
