Private bankers in Hong Kong, represented by the Private Wealth Management Association, want to double their assets under management within five years. So how are they going to achieve their target?
Hong Kong currently has in excess of 3,000 «wealth management practitioners». Amy Lo, Head of Greater China, UBS Wealth Management, hopes to see the number of practitioners rise to more than 6,000 over the next five years.
Among potential conduits for an eye watering 50 percent growth in money managers is Hong Kong’s neighbour to the North. Lo urged local private bankers to tap into the myriad of opportunities in China, where according to her, a new billionaire is born every week.
Next Generation Opportunities
«We would like to see more young blood in the sector, especially those who can take care of the second and third generation of the ultra high net worth individuals,» said Lo.
In an article in the Hong Kong publication The Standard, other private bankers are of the opinion that tightening regulations could stifle new entrants to the industry. «It is painful in the short term,» said Steven Lo Wai Ming, Hong Kong global market manager at Citi Private Bank.
Emerging Threats
Retaining existing wealth management professionals is also going to be a challenge with emerging threats such as fintech and robo advisors. Although the annual turnover rate is the lowest in the banking sector in the Special Administrative Region (SAR), it still stands at a solid 12 to 15 percent.
The Private Wealth Management Association (PWMA) is a Hong Kong-based voluntary association. Its members believe that the initiative will help maintain Hong Kong’s status and competitiveness as a major financial centre.
