Hong Kong brokers bypass AI chatbots in favour of social media apps

Hong Kong brokers prefer to use popular messaging apps such as WhatsAapp and WeChat to stay in touch with clients, even as artificial intelligence powered chatbots are being embraced by large financial institutions, according to a survey by the Hong Kong Securities Association.

Banks such as HSBC and Standard Chartered Bank are leveraging AI-powered chatbot platforms to answer enquiries by customers, trhjoining a growing global trend which is seen as offering improved customer service and lower business costs.

Many small and medium-sized brokerages, which make up most the city’s 500 licensed securities dealers, have no intention of using the technology, the survey found.

Of the 300 brokerages polled in January and February, 81 per cent said they had no plans to introduce a chatbot, while only 8 per cent said they currently use one. About a tenth of those surveyed said they plan to adopt the technology to support their customer service initiatives.

“Most of the local brokers have fewer customers than banks. They consider it cheaper to hire staff than introducing a chatbot to serve customers,” said Gordon Tsui, deputy chairman of the Hong Kong Securities Association.

Among those who do not plan to deploy chatbots, 67 per cent cited excessive costs, while 28 per cent believe human agents could not be replaced by machines. Others cited concerns about legal issues.

Brokers however are not completely adverse to new technology. The surveyed showed 65 per cent of brokers use either WeChat or WhatsApp to communicate with customers, while 27 per cent use Facebook.