Embracing Change Premium financial services keep evolving by Alex Chan Advisory services catered to a new class of affluent customer Every successful business must be able to anticipate and cater to new customer demand. The world is ever-changing, says Lina Cheng, vice president and head of financial advisory services at American Express Bank Limited, and that means companies must keep evolving if they hope to retain and expand their client base. More specifically, Ms Cheng points out that Hong Kong has seen a surge in the number of affluent individuals in recent years. According to Datamonitor's Global Wealth Model 2004, approximately 1.4 million local residents have accumulated liquid assets of over US$100,000 and, realising the growth potential of this market, American Express decided to introduce financial advisory services (FAS). The bank had identified a new market segment and felt that individuals with between US$100,000 and US$1 million, who did not qualify for private banking services, could benefit from access to wealth management expertise and personalised advice. "This was a natural development for us because we are constantly evolving to meet our customers' needs," Ms Cheng says. Since the introduction of FAS in 2004, branches have been converted into wealth management centres in Tsim Sha Tsui, Central and, most recently, Taikoo Shing. Each of them employs professional relationship managers and business is growing so fast that the workforce is expected to double by the end of this year. We are constantly evolving to meet our customers' needs Changing attitudes While there are more affluent individuals in Hong Kong, their behaviour has also been changing. A recent survey conducted by American Express showed the emergence of what Ms Cheng refers to as the "connoisseur". This is someone who is financially well off and concerned with self-discovery and learning about the world. "These people are interested in accumulating inner wealth, not just assets," she explains. In many cases, what they hope for is more time to appreciate a diverse lifestyle. They probably want to spend more time with family and friends, and FAS aims to help them handle their wealth management needs, so they can achieve those goals. Ms Cheng notes that it can take a significant amount of time and energy to manage investments properly. However, by developing custom-made plans and relying on the bank's global expertise, FAS can make the process much easier. "Another thing that makes us different from other wealth managers is that we build long-term relationships with customers and do not try to hard sell," she adds. This philosophy is reflected in three corporate values: quality, integrity and a commitment to customers, which extends to exceeding expectations. "We want clients to feel they can open up to our relationship managers and feel comfortable talking about family finances and personal ambitions," says Ms Cheng. "We are really interested in meeting all of their needs related to wealth management and investing." Something special In fact, she likens the FAS team to the speciality supermarkets which are becoming increasingly popular in Hong Kong. Those stores also aim to provide products which are the best of their kind and really try to understand what will suit their customers' lifestyles. "You can buy a common herb like rosemary at any local supermarket, but if you want special herbs or ingredients you will have to go somewhere special," Ms Cheng explains. With 72 offices in 45 countries, American Express has access to a large network of fund managers and investment experts. This enables them to find and recommend the best products for customers. "Value for money is what we offer," says Ms Cheng. "It is best exemplified by our branches which are located on upper floors, offering customers a comfortable and exclusive environment. Our business will continue to evolve and change as customers become more sophisticated, but our commitment to their best interests will never change." Then and now Before Lack of premium wealth management services for growing number of affluent individuals with between US$100,000 and US$1 million After The introduction of financial advisory services to offer access to premium wealth management Three branches offering clients prestige and comfort A wide range of special services to meet the needs of each customer Taken from Career Times 8 September 2006 Your comments are welcome at [email protected]