AI uptake sees wealth management headcounts in Hong Kong trail growth in assets

Hong Kong's private wealth assets have experienced robust growth, yet the industry has not matched this growth in hiring, according to consulting firm Capco. Simon Smallcombe, Capco's insurance and wealth leader in the Asia-Pacific region, attributes this discrepancy to the increasing adoption of technology, including AI, which enhances team productivity.

In 2024, financial firms in Hong Kong managed HK$42.2 trillion (US$5.38 trillion) worth of assets, a 20% increase from the previous year. This growth was primarily driven by a 24% rise in private bank and family office assets, reaching HK$12.9 trillion. However, Capco's research indicates that headcount in the private bank industry only grew by 2.2%, from 9,920 in 2024 to 10,140 last year.

This lag in hiring, despite the wealth of assets under management, suggests that the industry is leveraging technology to optimize its workforce. Capco's report, based on commission data, will be released on Wednesday. Smallcombe emphasizes that AI is not replacing human roles but enhancing them. Relationship managers, who now have more time to spend with clients due to AI handling administrative tasks, are expected to play a larger role in areas like succession planning and complex investment decisions.

The trend towards AI adoption in the industry is expected to continue, allowing private banks and wealth management companies to support rising assets without expanding their workforce. However, this shift should not cause concern for bankers, but rather an opportunity to embrace AI tools to improve their services.