HSBC Global Private Banking launches discretionary digital platform in Asia

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HSBC Global Private Banking (GPB) has become the first bank in Asia to introduce a discretionary digital platform (DPM) through its mobile app. This innovative feature allows private banking clients to subscribe to and reallocate their discretionary portfolios directly from HSBC GPB’s mobile app, providing them with 24/7 access to portfolio holdings and manager updates.

The DPM program, which was launched online in May 2021, constructs clients’ portfolios using building blocks designed exclusively for clients in Asia. The minimum investment required for this service is $200,000. The discretionary portfolio building blocks consist of equity, fixed income, and multi-asset portfolios, managed by HSBC Asset Management and third-party managers on behalf of HSBC GPB.

The introduction of the DPM platform is a significant step for HSBC GPB, as it represents over 10% of the bank’s DPM assets under management in Asia. Last year, HSBC GPB also launched an online trading platform for its private banking clients in Asia, providing them with access to 10 major financial markets.

Siew Meng Tan, the regional head of HSBC Global Private Banking, Asia Pacific, highlighted the growing demand for discretionary mandates among clients in Asia. He emphasized the need for diversification, multiple income streams, and defensive positions in high-quality companies to navigate market volatility and interest rate hikes. The new digital platform aims to serve the underserved affluent-to-high net worth investors, particularly the next generation of clients who are more involved in portfolio construction.

Tan further explained that the discretionary digital platform aligns with HSBC GPB’s vision of making a wide range of products and content digitally accessible to clients beyond the ultra-high net worth segment. The platform offers a user-friendly and powerful wealth management solution, empowering clients, especially digitally savvy millennials, to engage in proactive wealth management anytime and anywhere. In fact, 90% of HSBC GPB’s clients in Hong Kong have expressed satisfaction with the bank’s digital services, with a year-on-year increase of 5%.

HSBC’s introduction of the discretionary digital platform in Asia demonstrates the bank’s commitment to leveraging technology and meeting the evolving needs of its private banking clients.