The vast majority of Hong Kong and mainland China investors not already communicating with financial advisers via messaging apps would do so if privacy and security were assured, according to a survey by banking software provider Avalaoq. 

Currently, 51 percent of investors in mainland China and 39 percent in Hong Kong already communicate with their financial advisers via messaging apps like WhatsApp or WeChat, according to a recent survey by Avaloq. Of the remaining that don’t do so, 74 percent in mainland China and 58 percent in Hong Kong would be interested in joining if they knew their conversations were «fully private and secure».

Such preferences could lead to greater engagement with clients, especially when considering advancements in mobile technology and the growing frequency of online activities such as the management of investments. In fact, 41 percent and 45 percent of mainland Chinese and Hong Kongers, respectively, consult their investments once a week with 41 percent of the former checking everyday. 

Risk of Lacking Digital Contact

The trend toward conversational banking online inevitably creates compliance challenges, according to Avaloq, making it a necessary requirement for relationship managers to have a private, secure and compliant platform that facilitates instant messaging with clients on popular apps.

But the cost of not doing so could be lower engagement and contact points, which could be a material issue for clients, especially due to ongoing mobility restrictions in the region. This is due to the demand from clients for frequent contact, particularly amongst affluent and ultra-high net worth (UHNW) individuals. 

According to the survey, 72 percent of mainland Chinese in this segment contact their advisors once a week while 39 percent do so in Hong Kong. Failure to communicate frequently is sufficient reason for 34 percent and 39 percent of affluent to UHNW investors in mainland China and Hong Kong, respectively, to consider switching advisors. 

«Frequent communication on digital channels is essential to meet the high expectations of investors,» said Pascal Wengi, North Asia managing director at Avaloq. «Banks and wealth managers need to ensure a high degree of digital security and privacy – in addition to an engaging and intuitive interface – to help more investors make the switch to digital communication channels.»