Thursday, 25 April 2024

Standard Chartered Hong Kong enhances digital transformation in wealth management

5 min read

With a focus on enhancing its digital platform for affluent clients, Standard Chartered Hong Kong has affirmed its position as a leader in the wealth management sector in key Asian markets, including GBA and Southeast Asia

  • Expanded wealth management services to 13 Asian markets
  • Enhanced affluent client base through digital innovation, next-gen mobile apps, myWealth Direct platform
  • myWealth Direct is a significant leap with a blend of personalisation, convenience, data-driven investment strategies

Hong Kong’s asset and wealth management industry, valued at over HKD 30.5 trillion ($3.9 trillion) at the end of 2022, is a significant player in the global market, with 64% of its funding sourced from outside the region. With economic activities normalising following border reopening with the mainland, the industry is set to revive with increased fund inflows. 

The Hong Kong government has also increased efforts to enhance its status as a premier asset and wealth management hub in Asia through the mutual recognition of funds arrangements with several countries, and the promotion of the Real Estate Investment Trust market using regulatory and financial incentives.

Adapting to global challenges with strategic foresight

In an increasingly volatile global economic landscape, Standard Chartered Hong Kong has demonstrated resilience, particularly in its wealth management division. With the resumption of normal economic activities and the reopening of international borders in 2023, the bank has achieved operating income of HKD 15,053 million ($1,928 million) in its consumer, private and business banking segment by the end of June 2023, a substantial 23.7% year-on-year increase.

Such growth underlines the bank’s adeptness in navigating the complexities of the current financial climate, and its unwavering commitment to expansion and digital innovation. 

The bank inaugurated its Greater Bay Area (GBA) Centre in Guangzhou in 2021, highlighting its commitment to growth in the Guangdong-Hong Kong-Macao economic supercity expected to take a leading role globally by 2035.

With $300 million in investment planned for China-related businesses, including GBA, the bank is strategically positioned to leverage China’s opening and RMB internationalisation, enhancing intra-Asia connectivity and supporting the China-ASEAN corridor. The bank’s strategic focus on the GBA and Southeast Asia has yielded 12% growth in operating income and 15% rise in profit before taxation for the affluent segment in 2022. 

Enhancing wealth management through digital platforms

Central to the bank’s growth strategy is the targeted expansion of its affluent client base. The bank enhanced its Priority Private service and introduced innovative digital solutions like next-generation mobile banking apps and the myWealth Direct platform. Such initiatives have not only widened the bank’s reach within the affluent market segment but have also improved customer experience and accessibility.

Revolutionising wealth management with myWealth and myRM

Standard Chartered Hong Kong leads in digital innovation in wealth management, differentiated to a great extent by its efficient, data-driven investment strategies. The myWealth platform, accessible via the bank’s mobile app, is designed to provide clients with a tailored digital experience in managing investments. The platform offers customised insights, portfolio analysis, and real-time market updates, all powered by advanced algorithms and analytics. myWealth allows clients to adapt rapidly to market opportunities in a changing landscape by building diversified portfolios. 

myWealth offers personalised, convenient, and technology-driven financial services, meeting the nuanced needs of the wealthy. It provides clients with a comprehensive view of their portfolios across various asset classes and currencies. The platform compares clients’ asset allocations with optimal model portfolios. This facilitates informed investment decisions, reducing the influence of personal biases and aligning with market conditions.

In addition to myWealth, the bank plans to further enhance its offerings for high-end clients. This includes the introduction of capital protection in Equity-Linked Investments and further improving the customer service experience. 

Omnichannel relationships with clients

The myRM service, launched in mobile banking and online wealth management, creates an additional communication channel between clients and managers, enhancing client engagement and flexibility. This omnichannel wealth management experience blends traditional relationship management with digital convenience.

The myWealth platform provides a user-friendly, sophisticated, and data-driven approach to investment management, catering to the diverse needs of busy, modern investors. The platform also features tailored insights, portfolio health checks, and investment idea generation, based on the bank’s comprehensive market research and analysis. This ensures that clients receive well-informed, objective, and practical investment advice, tailored to their individual risk profiles and investment goals.

In line with its strategic goals, the bank has sustained a strong presence in the mutual funds market, focusing on managed investments and introducing innovative offerings. The bank partners with INSEAD Wealth Academy, an initiative aimed at elevating the capabilities of its wealth management team.

Through initiatives like myWealth and other strategic measures, Standard Chartered Hong Kong is positioned to continue its leadership in the wealth management sector, offering sophisticated and client-focused financial services in Hong Kong and across the Asia Pacific.

 

 



Keywords: Digital Transformation, Wealth Management, Affluent Clients, Digital Innovation, Mobile Apps, Personalisation, Mywealth Direct Platform, Asset And Wealth Management Industry, Economic Activities, Border Reopening, Funding, Diversified Portfolios
Institution: Standard Chartered Hong Kong, INSEAD Wealth Academy
Country: Hong Kong, China
Region: Southeast Asia, Asia Pacific
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