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Hong Kong Private Wealth Management Report 2023: $1.14 Trillion AUM & Decreased -15.3% in 2022, Top 4 Clients Outlook are Tensions between United States & China, High inflation & interest rates , Fears of Economic Recession, Russia & Ukraine Conflict, Top 5 Investors Investment Themes are Cash & Cash Alternatives 91%, Structured Products 61%, Fixed income 58%, Private Market 39%, Broad Asset Class & Discretionary Portfolio 24%

13th October 2023 | Hong Kong

The Private Wealth Management Association (PWMA) & KPMG China have released the 8th Hong Kong Private Wealth Management Report for 2023, providing key insights into Hong Kong private wealth management industry.  In 2022, the Hong Kong Private Banking & Wealth Management Assets under Management (AUM) is at $1.14 trillion (HKD 8.96 trillion), decreasing by -15.3% from 2021 (Market return -16.4%, Net inflow of +1.1%).  The Top 4 Clients Outlook are Tensions between the U.S. and China, High inflation & interest rates , Fears of an economic recession, Russia / Ukraine conflict.  The Top 5 Investors Investment Themes are Cash & cash alternatives 91%, Structured Products 61%, Fixed income products 58%, Private market Investments 39%, Broad asset class diversification / discretionary portfolio solutions 24%.  Top 4 Impact on Hong Kong Private Wealth Industry are High inflation & interest rates, Tensions between U.S. and China, Fears of an economic recession, Regulatory uncertainty within certain industries in China.  Booking Centre demand in Hong Kong increased 40%, Booking Centre demand in Singapore increased 70%, Booking Centre demand in Others (Dubai, New York, London, Zurich etc) increased 21%.  Clients’ Accounts in Other Jurisdictions in 2023 – Singapore 73%, US 17%, UK 16%, Switzerland 15%.  Origin of AUM in 2023 in Hong Kong – Mainland China 36%, Hong Kong 41%, Other APAC 15%, Other Global 8%.  Top 4 Factors in selecting the booking centre – Political stability, Proximity to main country of residence, Legal environment, Level of investor protection.  The Top 5 Opportunities to Grow Hong Kong Wealth Management Market – Mainland China market, Second (or third) generation, Family offices to set up in Hong Kong, Young entrepreneurs, IPO fund raising activities in Hong Kong.  94% agree Family Office is an important source of business for my firm.  Ranking of Hong Kong – Ease of onboarding 1st, Ease of trading 1st, Range of investment options 1st, Personal transaction reporting requirements 1st, Range of non-investment related services (family trust, tax, accounting, etc.) 1st, Investor protection 1st, Proximity / Connectivity 1st, Regulation / Jurisdiction 1st, Political stability 3rd.  Top 6 most useful digital services for clients on research & investment – Access to research, Portfolio construction, Actionable Ideas, Transaction execution capability, Financial goals advice planning, Investment suitability checks & disclosures.  Most important attributes in Relationship Managers for clients – Knowledge & expertise of financial products, Ability to listen well and tailor offering to my needs, Portfolio management expertise, Relationship / rapport with me and/or my family members.  More talents leaving the industry – Yes 30%, No 70%.  See below for key findings & summary | View report here

” $1.14 Trillion AUM & Decreased -15.3% in 2022, Top 4 Clients Outlook are Tensions between United States & China, High inflation & interest rates , Fears of Economic Recession, Russia & Ukraine Conflict, Top 5 Investors Investment Themes are Cash & Cash Alternatives 91%, Structured Products 61%, Fixed income 58%, Private Market 39%, Broad Asset Class & Discretionary Portfolio 24% “

 



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Hong Kong Private Wealth Management Report 2023

Hong Kong, Asia’s leading financial centre

The Private Wealth Management Association (PWMA) & KPMG China have released the 8th Hong Kong Private Wealth Management Report for 2023, providing key insights into Hong Kong private wealth management industry.

 

Hong Kong Private Wealth Management Report 2023

Summary:

  1. AUM in 2022$1.14 trillion (HKD 8.96 trillion)
  2. 2022 vs 2021 AUM ChangeDecreased by -15.3% (Market return -16.4% and Net inflow of +1.1%)
  3. Related Market Indices in 2022 – Hang Seng Index (HSI) -15.5%, Hang Seng China Enterprises Index (HSCEI) -18.6%, Hang Seng China A Industry Top Index -19.6%, Hang Seng Stock Connect China A 300 Index, -21.2%
  4. Major US Market Indices in 2022 – S&P 500 -18.1%, Nasdaq Composite -34%
  5. Top 4 Clients Outlook – Tensions between the U.S. and China, High inflation & interest rates , Fears of an economic recession, Russia / Ukraine conflict 
  6. Clients to take on investment risk across all asset classes for the next 12 months – 30% increase, 31% no change, 39% decrease
  7. Top 5 Investors Investment Themes – Cash & cash alternatives 91%, Structured Products 61%, Fixed income products 58%, Private market Investments 39%, Broad asset class diversification / discretionary portfolio solutions 24%
  8. My Company AUM in ESG in Hong Kong – 88% with 0% to 10% ESG allocation
  9. My Company Plan on Virtual Assets – 82% currently taking a wait-and-see approach
  10. Client Preferred Portfolio Allocation in Virtual Assets – 73% with 0% to 5% allocation 

Summary – Industry:

  1. Top 4 Impact on Hong Kong Private Wealth Industry – High inflation & interest rates, Tensions between U.S. and China, Fears of an economic recession, Regulatory uncertainty within certain industries in China 
  2. Top 11 Concerns on Hong Kong Private Wealth Industry – Macroeconomic environment & market volatility, Geopolitical tensions, Regulatory environment, Talent attraction & retention, Financial risk (credit, market, liquidity, capital), Anti-money laundering (AML) and tax evasion, Technology & information security, Competition from other financial hubs, Conduct practices, Governance & operating model, Threat of new entrants
  3. AUM Growth Forecast in next 5 Years – 0% to 5% AUM Growth (15% of firms), 6% to 10% (67% of firms), 11% to 20% (18% of firms)
  4. Booking Centre demand in Hong Kong – Increased 40%
  5. Booking Centre demand in Singapore – Increased 70%
  6. Booking Centre demand in Others (Dubai, New York, London, Zurich etc) – Increased 21%
  7. Clients’ Accounts in Other Jurisdictions in 2023 – Singapore 73%, US 17%, UK 16%, Switzerland 15%
  8. Origin of AUM in 2023 in Hong Kong – Mainland China 36%, Hong Kong 41%, Other APAC 15%, Other Global 8%
  9. Top 4 Factors in selecting the booking centre – Political stability, Proximity to main country of residence, Legal environment, Level of investor protection 
  10. Top 5 Opportunities to Grow Hong Kong Wealth Management Market – Mainland China market, Second (or third) generation, Family offices to set up in Hong Kong, Young entrepreneurs, IPO fund raising activities in Hong Kong
  11. Top 5 Constraints for Hong Kong as a Wealth Management Centre – Challenging regulatory environment 73%, Concerns over Hong Kong’s political situation 70%, Limited access to Mainland China assets 48%, Limited private banking talent pool 45%, Limited depth of advice & services in areas such as tax, succession planning, family governance 42%
  12. Top 4 Challenges of Greater Bay Asia Cross-Boundary Wealth Management Connect – Individual investment limits are inadequate, Barriers to cross-border services, Restrictions on the types of ‘Southbound’ products for Mainland clients, Currently limited to the 9 cities in the Greater Bay Area
  13. Family Office is an important source of business for my firm – Agree 94%
  14. Ranking of Hong KongEase of onboarding 1st, Ease of trading 1st, Range of investment options 1st, Personal transaction reporting requirements 1st, Range of non-investment related services (family trust, tax, accounting, etc.) 1st, Investor protection 1st, Proximity / Connectivity 1st, Regulation / Jurisdiction 1st, Political stability 3rd
  15. Ranking of SingaporeEase of onboarding 2nd, Ease of trading 2nd, Range of investment options 2nd, Personal transaction reporting requirements 2nd, Range of non-investment related services (family trust, tax, accounting, etc.) 2nd, Investor protection 2nd, Proximity / Connectivity 2nd, Regulation / Jurisdiction 2nd, Political stability 1st
  16. Top 4 Pain Points of Hong Kong Regulatory Requirements – Sales practices & suitability, Know your customers (KYC) & anti-money laundering (AML), Disclosures to clients , Product due diligence 
  17. Top 4 Pain Points of Hong Kong Regulatory Requirements for Clients – Providing source of wealth, Onboarding requirements, Lengthy verbal risk disclosures when I wish to trade products, Portfolio reporting requirements
  18. Views on impact of streamlining measures when servicing Sophisticated Professional Investors (SPI) – Positive Impact 82%
  19. Clients’ willingness to eliminate suitability checks & lengthy risk disclosures to conduct trades – Yes 77%, No 23%
  20. Top 6 most useful digital services for clients on research & investment – Access to research, Portfolio construction, Actionable Ideas, Transaction execution capability, Financial goals advice planning, Investment suitability checks & disclosures
  21. Top 8 areas that clients feel the most need for member firms to improve in – Scope of online services, Degree of self service, Access to real-time data & information, Specialist features, Speed of service, User interface, Degree of customisation, Cybersecurity
  22. Client Communication Preference for Account Onboarding – Digital channels (mobile, web, tablet) 40%, Telephone 7%, Video conference 15%, In-person 38%
  23. Client Communication Preference for Investment Research – Digital channels (mobile, web, tablet) 71%, Telephone 13%, Video conference 8%, In-person 8%, 
  24. Client Communication Preference for Trading – Digital channels (mobile, web, tablet) 65%, Telephone 29%, Video conference 4%, In-person 2%
  25. Top 5 Talent Gap by Most Critical – Relationship managers 82%, Product specialists 55%, Compliance 33%, Risk control specialists 30%, Specialist IT & digital 27%
  26. Most important attributes in Relationship Managers for clients – Knowledge & expertise of financial products, Ability to listen well and tailor offering to my needs, Portfolio management expertise, Relationship / rapport with me and/or my family members
  27. Top 3 factors to increase the attractiveness of Relationship Manager role – Remuneration 88%, Relief of administrative burden 70%, Opportunities for personal development 45%
  28. More talents leaving the industry – Yes 30%, No 70%
  29. Talents leaving – Private Wealth Management industry 18%, Hong Kong 39%, Both Industry & Hong Kong 43%

 

 

Hong Kong Private Wealth Management Report 2023

1) Hong Kong Private Wealth Management Industry

Hong Kong Private Banking & Wealth Management AUM Overview:

  • AUM in 2022$1.14 trillion (HKD 8.96 trillion)
  • 2022 vs 2021 AUM Change Decreased by -15.3% from $1.35 trillion (HKD 10.6 trillion), Market return -16.4% and Net inflow of +1.1%

Related Market Indices:

  • Hang Seng Index (HSI) 2022 Change – Decrease by -15.5%
  • Hang Seng China Enterprises Index (HSCEI) – Decrease by -18.6%
  • Hang Seng China A Industry Top Index – Decrease by -19.6%
  • Hang Seng Stock Connect China A 300 Index – Decrease by -21.2%
  • S&P 500 – Decrease by -18.1%
  • Nasdaq Composite – Decrease by -34%

Top 4 Impact on Hong Kong Private Wealth Management Industry:

  1. High inflation & interest rates 
  2. Tensions between U.S. and China 
  3. Fears of an economic recession 
  4. Regulatory uncertainty within certain industries in China 

Top 10 Concerns on Hong Kong Private Wealth Management Industry:

  1. Macroeconomic environment & market volatility 
  2. Geopolitical tensions 
  3. Regulatory environment
  4. Talent attraction & retention
  5. Financial risk (credit, market, liquidity, capital)
  6. Anti-money laundering (AML) and tax evasion
    Technology & information security, including cyber security
  7. Competition from other financial hubs
  8. Conduct practices
  9. Governance & operating model (including outsourcing arrangements)
  10. Threat of new entrants 

AUM Growth Forecast in next 5 Years:

  • 0% to 5% AUM Growth – 15% of firms
  • 6% to 10% – 67% of firms
  • 11% to 20% – 18% of firms

 

2) Booking Centres – Hong Kong, Singapore, Switzerland, UK, US

Booking Centres – Demand of new accounts to be opened / client assets to be held

Hong Kong:

  • Increased – 40%
  • The same – 30%
  • Reduced – 30%

Singapore:

  • Increased – 70%
  • The same – 24%
  • Reduced – 6%

Others (Dubai, New York, London, Zurich etc):

  • Increased – 21%
  • The same – 70%
  • Reduced – 9%

Clients’ Accounts in Other Jurisdictions in 2023:

  • Singapore – 73%
  • US – 17%
  • UK – 16%
  • Switzerland – 15%
  • Other – 6%

 

3) Clients / Investors Outlook

Top 4 Clients – Macro Trends Impacting Investment Outlook &  Risk Tolerance:

  1. Tensions between the U.S. and China 
  2. High inflation & interest rates 
  3. Fears of an economic recession 
  4. Russia / Ukraine conflict 

Clients – Willingness to take on investment risk across all asset classes for the next 12 months:

  • Significantly increased – 6%
  • Slightly increased – 24%
  • No change – 31%
  • Slightly deteriorated – 28%
  • Significantly deteriorated – 11%

Top 7 Investors Investment Themes:

  1. Cash & cash alternatives91%
  2. Structured Products with upside potential & downside protection 61%
  3. Fixed income products58%
  4. Private market Investments (e.g., Private equity, private debt, venture capital, hedge funds) – 39%
  5. Broad asset class diversification / discretionary portfolio solutions – 24%
  6. New economy (e.g., Biotech, Healthcare, Tech, AI, etc.) – 15%
  7. Geographic diversification – 9%

 

4) ESG & Sustainable Investments 

My Company AUM in ESG in Hong Kong:

  • 0% to 10% allocation – 88%
  • 11% to 20% allocation – 3%
  • 21% to 30% allocation – 3%
  • More than 30% allocation – 6%

Forecast AUM in ESG in Hong Kong:

  • 0% to 10% allocation – 42%
  • 11% to 20% allocation – 40%
  • 21% to 30% allocation – 9%
  • More than 30% allocation – 9%

Client Preferred Portfolio Allocation in ESG & Sustainable Investments in next 5 years:

  • 0% to 5% allocation – 32%
  • 6% to 10% allocation – 20%
  • 11% to 20% allocation – 24%
  • 21% to 30% allocation – 17%
  • More than 30% allocation – 7%

 

5) Virtual Assets

My Company Plan on Virtual Assets:

  • Currently taking a wait-and-see approach – 82%
  • Planning to invest in Virtual Assets trading &/or custody services for clients in the next 2-3 years – 15%
  • Currently developing Virtual Assets trading &/or custody services for clients – 3%

Client Preferred Portfolio Allocation in Virtual Assets:

  • Less than 1% allocation – 34%
  • 1% to 5% allocation – 39%
  • 6% to 10% allocation – 18%
  • More than 10% allocation – 9%

 

6) Hong Kong Wealth Management Market Growth Outlook

Top 9 Opportunities to Grow Hong Kong Wealth Management Market:

  1. Further penetrating the Mainland China market
  2. Targeting the second (or third) generation
  3. Attracting more family offices to set up in Hong Kong
  4. Targeting young entrepreneurs 
  5. Attracting more IPO fund raising activities in Hong Kong
  6. Attracting more offshore clients residing in other markets
  7. Developing wealth in the ASEAN bloc
  8. Targeting less wealthy customer segments through digital channels
  9. Targeting female clients 

Origin of AUM in 2023:

  • Mainland China36%
  • Hong Kong41%
  • Other APAC – 15%
  • Other Global – 8%

Origin of AUM in next 5 years:

  • Mainland China – 46%
  • Hong Kong – 34%
  • Other APAC – 13%
  • Other Global – 7%

Top 4 Challenges of Greater Bay Asia Cross-Boundary Wealth Management Connect:

  1. Individual investment limits are inadequate (e.g.,The investment quota of RMB 1m per individual investor) 
  2. Barriers to cross-border services (e.g., Hong Kong bank staff are not allowed to provide advisory services to clients that are located in Mainland China) 
  3. Restrictions on the types of ‘Southbound’ products available for investment by Mainland clients (e.g., low- medium risk level funds) 
  4. Limited geographical coverage (i.e., currently limited to the 9 cities in the Greater Bay Area) 

 

7) Family Offices

Family Office is an important source of business for my firm:

  • Strongly agree50%
  • Somewhat agree44%
  • Neutral – 6%
  • Somewhat disagree – 0%
  • Strongly disagree – 0%

 

8) Ranking of Global Wealth Management Centres

Top Ranking of Global Wealth Management Centres (Hong Kong, Singapore, Switzerland, US, UK): 

  • Ease of onboardingHong Kong
  • Ease of tradingHong Kong
  • Range of investment optionsHong Kong
  • Personal transaction reporting requirements Hong Kong
  • Range of non-investment related services (family trust, tax, accounting, etc.) – Hong Kong
  • Investor protectionHong Kong
  • Proximity / ConnectivityHong Kong
  • Regulation / JurisdictionHong Kong
  • Political stability – Singapore

Ranking of Hong Kong:

  • Ease of onboarding – 1st
  • Ease of trading – 1st
  • Range of investment options – 1st
  • Personal transaction reporting requirements – 1st
  • Range of non-investment related services (family trust, tax, accounting, etc.) – 1st
  • Investor protection – 1st
  • Proximity / Connectivity – 1st
  • Regulation / Jurisdiction – 1st
  • Political stability – 3rd

Ranking of Singapore:

  • Ease of onboarding – 2nd
  • Ease of trading – 2nd
  • Range of investment options – 2nd
  • Personal transaction reporting requirements – 2nd
  • Range of non-investment related services (family trust, tax, accounting, etc.) – 2nd
  • Investor protection – 2nd
  • Proximity / Connectivity – 2nd
  • Regulation / Jurisdiction – 2nd
  • Political stability – 1st

Ranking of Switzerland:

  • Ease of onboarding – 3rd
  • Ease of trading – 3rd
  • Range of investment options – 4th
  • Personal transaction reporting requirements – 3rd
  • Range of non-investment related services (family trust, tax, accounting, etc.) – 3rd
  • Investor protection – 3rd
  • Proximity / Connectivity – 3rd
  • Regulation / Jurisdiction – 3rd
  • Political stability – 2nd

Ranking of United Kingdom:

  • Ease of onboarding – 4th
  • Ease of trading – 5th
  • Range of investment options – 5th
  • Personal transaction reporting requirements – 4th
  • Range of non-investment related services (family trust, tax, accounting, etc.) – 4th
  • Investor protection – 4th
  • Proximity / Connectivity – 4th
  • Regulation / Jurisdiction – 4th
  • Political stability – 4th

Ranking of United States:

  • Ease of onboarding – 5th
  • Ease of trading – 4th
  • Range of investment options – 3rd
  • Personal transaction reporting requirements – 5th
  • Range of non-investment related services (family trust, tax, accounting, etc.) – 5th
  • Investor protection – 5th
  • Proximity / Connectivity – 5th
  • Regulation / Jurisdiction – 5th
  • Political stability – 5th

Top 4 Factors in selecting the booking centre:

  1. Political stability 
  2. Proximity to main country of residence 
  3. Legal environment 
  4. Level of investor protection 

Top 8 Constraints for Hong Kong as a Wealth Management Centre:

  1. Challenging regulatory environment – 73%
  2. Concerns over Hong Kong’s political situation – 70%
  3. Limited access to Mainland China assets – 48%
  4. Limited private banking talent pool – 45%
  5. Limited depth of advice and services in areas such as tax, succession planning, family governance – 42%
  6. Lack of government support – 33%
  7. Limited access to other international assets – 15%
  8. Other (please specify) – 3%

 

9) Regulations

Top 4 Pain Points of Hong Kong Regulatory Requirements in both 2022 & 2023:

  1. Sales practices & suitability, including complex products 
  2. Know your customers (KYC) & anti-money laundering (AML) 
  3. Disclosures to clients 
  4. Product due diligence 

Top 4 Pain Points of Hong Kong Regulatory Requirements for Clients in 2023:

  1. Providing source of wealth 
  2. Onboarding requirements (exclude source of wealth)
  3. The need for my advisor to make lengthy verbal risk disclosures when I wish to trade products
  4. Portfolio reporting requirements

Top 4 Pain Points of Hong Kong Regulatory Requirements for Clients in 2022:

  1. Providing source of wealth 
  2. The need for my advisor to make lengthy verbal risk disclosures when I wish to trade products
  3. Onboarding requirements (exclude source of wealth)
  4. The need for my advisor to check if products I wish to trade are suitable 

Top 8 barriers in implementing Regtech solutions (Regulatory Technology):

  1. Budget / resource constraints 
  2. Lack of available mature solutions
  3. Complex legacy architecture 
  4. Lack of suitably skilled talent to implement 
  5. Data is not in a form that can be easily digitised 
  6. Lack of flexibility within group policy 
  7. Do not perceive significant added value vs traditional solutions 
  8. Difficulties working with vendors

Top 5 Challenges in HKMA’s Operational Resilience (OR-2) requirements:

  1. Mapping of Interconnections and Interdependencies (e.g., with third party organisations) 
  2. Definition of Critical Operations 
  3. Definition of Tolerances for Disruption 
  4. Definition of Severe but Plausible Scenarios 
  5. Securing Board Approval of the Hong Kong OR-2 Framework 

 

10) Sophisticated Professional Investors (SPI)

Views on impact of streamlining measures when servicing Sophisticated Professional Investors (SPI):

  • Significant positive impact – 33%
  • Marginal positive impact – 49%
  • No impact – 12%
  • Marginal detrimental impact – 3%
  • Significant detrimental impact – 3%

 

Guidance for Sophisticated Professional Investors – The Sophisticated Professional Investors guidelines set out a proportionate and risk-based approach with simpler requirements for private wealth managers in areas including product due diligence, suitability assessment and risk disclosure. Portfolio of at least HK$40M, or net assets of at least HK$80M, and having relevant knowledge or trading experience. 

 

 

11) Disclosures & Product Suitability

Clients’ willingness to eliminate suitability checks & lengthy risk disclosures to conduct trades:

  • Yes – 77%
  • No – 23%

Clients on checking product suitability & disclosing potential product risks & other information before their trades are executed:

  • Pprocess provides me with sufficient protection – 15%
  • Process is appropriate – 30%
  • Process should be streamlined, but I appreciate the level of protection it offers – 32%
  • Process is too time-consuming and the level of protection it offers is unnecessary in my case – 23%

 

12) Fintech, Digital & New Solutions

Fintech solutions brings more opportunities (collaboration) than threats (competition):

  • Strongly agree – 21%
  • Agree – 70%
  • Neither agree or disagree – 9%
  • Disagree – 0%
  • Strongly disagree – 0%

Clients on their private wealth manager’s digital offerings:

  • Exceeding expectations – 6%
  • Meeting expectations – 46%
  • Mostly meeting expectations – 28%
  • Not meeting expectations – 13%
  • Well below expectations – 7%

Firms on their digital offering relative to customer expectations: 

  • Exceeding expectations – 3%
  • Meeting expectations – 15%
  • Mostly meeting expectations – 45%
  • Not meeting expectations – 31%
  • Well below expectations – 6%

Top 6 most useful digital services for clients on research & investment:

  1. Access to research 
  2. Portfolio construction, rebalancing and financial planning simulation tools 
  3. Actionable Ideas (e.g.,The ability to transact and / or be referred to an RM by clicking on a link when reading research / investment ideas) 
  4. Transaction execution capability
  5. Financial goals advice planning
  6. Investment suitability checks & disclosures

Top 8 areas that clients feel the most need for member firms to improve in: 

  1. Scope of online services
  2. Degree of self service
  3. Access to real-time data and information
  4. Specialist features e.g., analysis tools, investment goals, etc.
  5. Speed of service
  6. User interface
  7. Degree of customisation
  8. Cybersecurity

Availability of clients solutions (Now / In 2 years):

  1. Portfolio statements view and interaction – 79% / 15%
  2. Electronic mailbox for client correspondence – 67% / 12%
  3. Educational material – 55% / 27%
  4. Access to research – 55% / 24%
  5. Investment suitability checks and disclosures – 52% / 27%
  6. Compliant communication through third party channels – 39% / 27%
  7. Proactive alerts in relation to market events – 30% / 39%
  8. Proactive alerts and / or ability for clients to make choice in relation to voluntary corporate actions – 27% / 36%
  9. Account opening and / or KYC support – 24% / 52%
  10. Actionable Ideas – 24% / 33%
  11. Personalisation of the customer account – 24% / 27%
  12. Portfolio construction, rebalancing and financial planning simulation tools – 18% / 30%
  13. Portfolio consolidation across other booking centres – 18% / 15%
  14. Financial goal advice planning – 15% / 18%
  15. Chatbot – 12% / 27%
  16. Portfolio consolidation across other banks – 9% / 24%
  17. AI-driven personalized investment recommendations – 3% / 27%

Top 3 Key Risks from Large Language Model / Generative AI (e.g., ChatGPT):

  • Client &/or bank data security related risks 
  • The provision of, or reliance upon, inaccurate and or biased information 
  • Increased regulatory and/or legal risk 

 

13) Client Communication Preference 

Account Onboarding:

  • Digital channels (mobile, web, tablet) – 40%
  • Telephone – 7%
  • Video conference – 15%
  • In-person – 38%

Investment Research:

  • Digital channels (mobile, web, tablet) – 71%
  • Telephone – 13%
  • Video conference – 8%
  • In-person – 8%

Investment Recommendation:

  • Digital channels (mobile, web, tablet) – 51%
  • Telephone – 26%
  • Video conference – 13%
  • In-person – 10%

Trading:

  • Digital channels (mobile, web, tablet) – 65%
  • Telephone – 29%
  • Video conference – 4%
  • In-person – 2%

Portfolio Review:

  • Digital channels (mobile, web, tablet) – 47%
  • Telephone – 13%
  • Video conference – 11%
  • In-person – 29%

Portfolio Reporting:

  • Digital channels (mobile, web, tablet) – 65%
  • Telephone – 10%
  • Video conference – 10%
  • In-person – 15%

Periodic KYC review:

  • Digital channels (mobile, web, tablet) – 48%
  • Telephone – 24%
  • Video conference – 13%
  • In-person – 15%

Non-financial advice:

  • Digital channels (mobile, web, tablet) – 37%
  • Telephone – 33%
  • Video conference – 6%
  • In-person – 24%

 

14) Talent / Relationship Managers:

Top 9 Talent Gap by Most Critical:

  1. Relationship managers – 82%
  2. Product specialists (e.g., Alternative investments) – 55%
  3. Compliance – 33%
  4. Risk control specialists – 30%
  5. Specialist IT and digital (including cybersecurity) – 27%
  6. ESG specialists – 24%
  7. Portfolio managers – 21%
  8. Project / change management – 15%
  9. Philanthropy advisor- 6%

Most important attributes in Relationship Managers for clients:

  1. Knowledge & expertise of financial products 
  2. Ability to listen well and tailor offering to my needs
  3. Portfolio management expertise 
  4. Relationship / rapport with me and/or my family members 

Top 8 factors to increase the attractiveness of Relationship Manager role:

  1. Remuneration – 88%
  2. Relief of administrative burden – 70%
  3. Opportunities for personal development – 45%
  4. More supportive IT infrastructure – 30%
  5. Clear career path – 27%
  6. Reduce risk of regulatory liability – 24%
  7. Flexible working arrangements – 12%

Importance of diversity & inclusion in hiring process to their business success:

  1. Most important – 40%
  2. Important – 33%
  3. Neutral – 18%
  4. Less Important – 9%
  5. Not Important – 0%

More talents leaving the industry:

  • Yes – 30%
  • No – 70%

Talents leaving:

  • Private Wealth Management industry – 18%
  • Hong Kong – 39%
  • Both Industry & Hong Kong – 43%

 

 

Private Wealth Management Association 

Established in 2013, PWMA is an industry association, whose mission is to foster the growth and development of the private wealth management industry in Hong Kong. 

 

KPMG

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.  KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.  KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.  In 1992, KPMG became the first international accounting network to be granted a joint venture license in the Chinese Mainland. KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multidisciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies. 




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