Across Asia-Pacific (APAC)’s key wealth management hubs, Hong Kong is emerging as the frontrunner in wealthtech, overtaking Singapore in adoption.
According to a new report by Quinlan and Associates, and Allfunds Asia, a staggering 93% of Hong Kong investors have accessed digital wealth services in the past two years. This surpasses Singapore’s figure of eight percentage points, which stands at 85%.
Further illustrating this trend, 74% of Hong Kong investors reported using robo-advisors, 15 points higher than Singapore. Additionally, 52% said they are comfortable receiving guidance from artificial intelligence (AI), compared to just 27% in Singapore, representing a gap of 25 points.
Hong Kong investors also showcase greater engagement with digital channels, especially self-service via the Internet, mobile apps, and online chats with wealth managers and advisors. These investors increasingly favor digital-first interactions, unlike their Singaporean counterparts who still place more value on face-to-face meetings.
The rise of neobrokers in digital wealth
While Singapore has incubated regionally recognized pure wealthtech players like Endowus and StashAway, Hong Kong is experiencing a surge in independent neobrokers expanding into digital wealth management and rapidly capturing market share.
One standout example is Futu, a leading neobroker, which has expanded into wealth management. The company, which leverages its advanced backend digital capabilities, initially targeted high net-worth individuals with at least HK$5 million worth of assets under management (AUM) before introducing a robo-advisory service to cater to the mass retail segment.
As of 2024, Futu had 600,000 wealth management clients, up 44.2% year-over-year (YoY), while AUM totaled US$12 billion, representing a 71.4% YoY increase. The company serves a total of 25 million customers globally.
Hong Kong’s independent wealthtech pioneers
In parallel with the rise of neobrokers, Hong Kong is also nurturing a new generation of wealthtech startups and digital advisory platforms.
One notable example is Kristal.ai, a digital private wealth platform founded in 2016 in Hong Kong. The company uses a proprietary advisory algorithm to build personalized portfolios, branded as “Kristals”, tailored to users’ financial goals and risk preferences. Licensed in Hong Kong, Singapore, and India, Kristal.ai claims over 50,000 users across geographies, and more than US$1.5 billion in AUM and advisory assets.
Another prominent player is Aqumon. Founded in 2016, Aqumon is a digital wealth management firm that provides robo-advisory and wealth management services. Through its proprietary algorithms and scalable, technical infrastructure, Aqumon’s automated platform empowers anyone to invest and maximize their returns.
Aqumon also provides fintech solutions to institutions, and has partnered with over 100 financial institutions, including AIA, China Resources Bank, BOCI and CMB Wing Lung Bank, since its launch.
Digital banks enter wealthtech
Hong Kong’s virtual banks have also entered the digital wealth sector, offering digital offerings that prioritize efficiency, transparency, and accessibility.
In 2022, WeLab Bank, one of Hong Kong’s eight virtual banks, launched its GoWealth Digital Wealth Advisory solution, offering algorithm-driven advice for investing in mutual funds like money market,
equity, and bond funds. The solution enables users to set goals, build personalized portfolios, and rebalance without lock-up periods or hidden fees.
WeLab Bank reported strong traction for GoWealth Digital Wealth Advisory, citing it as a key driver of the bank’s growth. By December 2024, the bank achieved breakeven and noted a fourfold YoY increase in AUM from its wealth management services.
WeLab operates across Hong Kong, Mainland China, and Indonesia, serving nearly 70 million individual users and over 700 enterprise clients.
Featured image: Edited by Fintech News Hong Kong, based on images by sodawhiskey, salinduishan, and salinduishan via Freepik