Websites are still the preferred channel for investors in Hong Kong, but apps are growing in popularity, a survey by Calastone found.
Hong Kong clients expressed the strongest preference towards apps, with 44% of respondents in the territory using them for investing, compared with a global average of 36%.
“The pandemic has prompted a shift in how people invest, with digital channels seeing significant growth. In Hong Kong, the use of apps has become one of the key ways to invest, enabling convenient access for investors to manage and adjust their portfolios,” said Leo Chen, head of Asia at Calastone.
Usage varies between age-groups, however. About 50% of millennials (born between 1981 and 1996) and 44% of generation X (born between 1965 and 1980) investors in the region prefer to invest via apps, whereas 73% of baby boomers (born between 1946 and 1964) still prefer to invest via a website.
Globally, millennials showed the greatest appetite for app investing (46%), compared with 36% of generation X investors.
The increasing popularity of apps is seen in conjunction with growing demand for micro-investment among younger investors. Almost 90% of millennials and three-quarters of generation X respondents worldwide, for example, indicated interest in investing incrementally in smaller sums.
“The appetite for micro-investment was especially high among millennial investors in Hong Kong, as they look for low-cost ways to save and invest money. The asset management industry must make note of this shift to low-cost, digital investment solutions and ensure that it can support changing investor needs,” Chen said.
Returning confidence
Calastone also found that investor confidence has rebounded since the onset of the pandemic, with a greater proportion of people actively investing than last year.
Nearly half (43%) of Hong Kongers said they were actively investing in response to the current situation by capitalising on market volatility. On the other hand, 71% said that covid-19 had made them feel worried about their financial security and money management, which was a similar to the findings of the firm’s 2020 report.
Although the majority of Hong Kong respondents are worried about their financial futures, they are still bullish on the market, which may indicate that the shock of the pandemic is starting to pass, according to Chen.
There is also growing trust and acceptance of the latest investment management market entrants, such as technology companies and online retailers.
A total of 53% of Hong Kong investors feel positively towards financial services organisations and the finance sector overall. Yet, when it comes to purchasing decisions, they are happy to use services from non-traditional companies and channels, indicating higher levels of confidence in these service providers than the global average.
For instance, as much as 58% trust technology companies such as Apple — which is 11 percentage points higher than the global average — and 48% trust online retailers such as Amazon, while 36% might turn to social media companies for managing their investments.
For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com
