Digital technology is transforming the wealth management ( WM ) landscape, making advanced investment tools accessible to more than just ultra-wealthy individuals, according to a recent report on WM technology that examined the needs of investors, particularly those in Asia’s two key financial centres – Hong Kong and Singapore.

Asia’s total investor wealth is expected to reach US$216.6 trillion by 2026, according to market data, with the mass affluent and high-net-worth segments driving much of this growth, which indicates great potential for the development of WM technology, finds the WealthTech Opportunity for Digital Brokerages report, released by Futu Private Wealth Management under Futu Group, which surveyed 838 investors in the two centres.

Investors with assets below US$150,000 prioritize accessibility, simplicity and educational resources in their WM experience, the report notes, while, on the other hand, mass affluent investors – those with US$150,000 to US$1 million in investable assets – are looking for more personalized and sophisticated digital experiences – and, thus, they have a greater interest in automated features like robo-advisory services and auto-rebalancing tools.

For investors with assets over US$1 million – those classified as ultra-affluent – integrated solutions that blend investment management, tax planning and estate services are in demand.

“Wealth management has traditionally been characterized by its high human touchpoint, with its highly personalised and face-to-face interactions between clients and their financial advisers,” says Ryan Wu, Moomoo Singapore’s head of private wealth and institutional business. “These high-net-worth individuals typically lead successful and busy lives, traditionally relying on the expertise of wealth managers to navigate the investment landscape and manage their portfolios.”

Wealthtech platforms

As the WM market evolves, technology is playing an increasingly vital role. Wealthtech platforms that provide comprehensive and automated solutions for managing these complex needs are well-positioned to succeed in this dynamic environment.

There is a general comfort level with using technology in WM, the report notes, with over 65% of investors across all wealth categories expressing moderate to high comfort with digital solutions. However, notable differences exist between various wealth segments.

Wealthier clients tend to be more open to using automated solutions, likely because they place a higher value on their time. In contrast, individuals with lower asset bases still prefer the guidance of human advisers.

“As technology evolves and client preferences shift, these clients now expect hybrid advisory services, combining the best of technology and the human touch,” notes Rainie Miao, Futu Group’s managing partner of institutional and private wealth services. “This creates opportunities for digitally native firms providing WM services.”

In Hong Kong and Singapore, wealthtech features, such as automated portfolio tracking and risk management tools, have become increasingly popular among high-net-worth investors. These investors are looking for seamless and integrated services that effectively combine automation with advanced advisory support.

For mass affluent clients, a growing segment in Asia’s wealth landscape, hybrid solutions are essential. They desire a balance between self-directed investing and the comprehensive support typically offered by traditional private banking.

Almost 20% to 25% of mass affluent investors are open to sharing additional financial information in exchange for more personalized services, highlighting the demand for customized solutions. Wealthtech platforms that incorporate advanced algorithms for goal-based planning, along with on-demand advisor consultations, the report shares, are well-positioned to take advantage of this expanding market.

“Across the region, there is a clear shift towards digitally integrated, comprehensive wealth management solutions that leverage automation,” Miao stresses. “Wealthtech providers and digital brokerages looking to be at the forefront of this transformation should prioritize these offerings to meet the demands of investors in these markets.”

Wealthtech platforms catering to mass affluent investors, the report also finds, should prioritize a broad range of investment options, including alternative assets, thematic portfolios and initial public offerings. Investors in both regions expressed strong interest in these areas, indicating that as wealth increases, so does the desire for more diverse and potentially higher-yielding investment opportunities. For instance, 20% of respondents in both markets sought more options in alternative investments, such as hedge funds and real estate.

Ultra-affluent investors require not only digital tools but also integrated, high-level WM solutions. According to the report, 19% of respondents from Singapore and 54% from Hong Kong belong to this elite wealth tier. Within this tier, 35% to 45% of respondents regularly rebalance their portfolios, doing so at least once a month.

Interestingly, the report indicates that ultra-affluent clients in both Hong Kong and Singapore are less interested in traditional dedicated adviser relationships or concierge services. While these services are often seen as staples of private banking, only a small percentage of wealthy clients deem them important.

Overall, a unified platform that combines wealth management, credit, tax planning and estate services is now a critical demand. Despite their wealth, ultra-affluent investors show a preference for a more streamlined, data-driven approach to managing their financial lives.

Therefore, these investors demand sophisticated portfolio management tools, such as advanced analytics and automated rebalancing, along with integrated platforms that can aggregate data from multiple sources for a comprehensive view of their financial lives.