Banks unveil products to attract new breed of investment customers

THE rise of the emerging affluent is forcing Hong Kong's banks to overhaul their off-the-shelf investment packages and address the needs of individual clients.

Competition is fierce for a new middle market: customers whose income falls short of that demanded by private banks but whose investment requirements mean they require 'that personal touch'.

Advances in technology have enabled local banks to develop personal financial-planning tools for this new breed of well-off, financially literate customer.

With last month's launch of SmartInvest, Hang Seng Bank became the latest to offer software designed to help identify an individual's investment needs.

Developed in conjunction with the Hong Kong University of Science and Technology, the package is billed as helping 'customers to identify their financial needs, analyse their financial position, understand their risk appetite and select a personalised investment portfolio to attain their goals'.

The service is free to those with a Hang Seng Smart Account, which requires an opening balance of at least $200,000, or its equivalent. Initially, the financial modeller will be available at 20 branches, although a team of advisers can visit customers by appointment.

Last year Standard Chartered Bank and Hongkong Bank, Hang Seng's majority shareholder, launched similar packages targeted at similar client groups.