Credit Suisse brings digital private banking to Hong Kong

Credit Suisse expanded its digital private banking service to Hong Kong on Tuesday with the launch of a new private banking Asia Pacific app.

The move is the latest sign that technology is becoming increasingly important for private banking clients, who, analysts say, may consider moving banks if they cannot access appropriate digital solutions.

“There are two main reasons why players in the private banking sector are looking to make greater use of technology,” said James Lloyd, fintech lead at EY. “Firstly they are looking to automate a greater number of back office procedures to allow relationship managers to spend more quality time with their clients, and secondly, private banks now have to meet new expectations from their customers who ask for a much greater degree of online services than they did in the past.”

However, at the moment most private banking activities still take place in traditional ways. Research from EY found that personal interaction was the most common channel for wealth customers in Asia Pacific to get financial advice, with 39 per cent of respondents to a survey saying they received advice face to face compared to just 13 per cent who did so on mobile devices.

Lloyd said this was changing, but added that not all private banking firms were ready for the change. “According to our research, 57 per cent of APAC firms expect personal interactions to remain their primary channel in the next two to three years, compared with just 32 per cent of clients whose preferences are shifting to digital,” he said.

Speaking at the app’s launch, Francois Monnet, Credit Suisse’s head of private banking for Greater China, referred to a survey from Capgemini Wealth Management that found 83 per cent of high net worth individuals said they were likely to leave a wealth management firm that could not offer an integrated digital and direct channel for all clients.