Premier Banking Services in Hong Kong

Table of Contents

• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 2 MARKET OVERVIEW
  • Introduction
  • Hong Kong's economy was weak over the 1999-2004 period, yet retail wealth increased
    • The economic environment was not conducive to growth
    • The share of liquid wealth owned by the premier segment increased over the 1999-2004 period
    • And the number of individuals eligible for premier banking has increased
  • Data
• CHAPTER 3 PRODUCTS AND SERVICES
  • Premier offerings revolve around a few key products and services but lending is not a 'premier' criteria
    • Relationship is the primary selling point
    • Platinum credit cards are a key part of the premier offering
      • The popularity of platinum credit cards has increased
      • There are a number of reasons to issue a platinum card
      • Platinum credit cards are issued by ten of the largest competitors in the Hong Kong market
      • The future of 'color' marketing continues to hold its shine
      • Are customers lusting after more than platinum?
    • Premium deposit accounts allow clients to hedge currency risk
  • Data
• CHAPTER 4 COMPETITIVE DYNAMICS
  • Competitors in Hong Kong have rich pickings
    • Almost all Hong Kong retail banks value premier clients
      • The locally incorporated banks
      • Other locally incorporated banks
      • The foreign incorporated banks
    • Other markets place very different importance on premier banking
  • Assessment of online provision reveals a mixed bag
    • UOB has built a notion of exclusivity
• CHAPTER 5 FUTURE DECODED
  • The economic and financial outlook is positive
    • Forecast assumptions show strong GDP growth
  • Retail liquid assets are forecast to grow at a sustainable rate
  • The outlook for the premier banking sector is reasonably positive
    • The premier population is growing at a rate of 5.2%
    • Premier banking individuals are to maintain their share of assets
  • The Hong Kong players will seee some challenges ahead
    • There is very little differentiation at first glance
    • Competition is only going to get more intense
    • Clients will become more demanding
  • There are two criteria that the competitors are overlooking
    • None of the competitors take into account lending in their thresholds
    • Income is not currently a consideration
  • Data
• CHAPTER 6 APPENDIX
  • Definitions
    • AAGR
    • CAGR
    • Gini index
    • Liquid assets
    • Liquid asset bands
    • Premier banking population
  • Research methodology
  • The Global Wealth Model
    • The UK sub model
    • Asia-Pacific sub model
    • Forecasting methodology
    • Datamonitor's wealth numbers compared with others' numbers
  • Bespoke Wealth Market Sizing
  • Further reading
    • Datamonitor Asia-Pacific Wealth Reports
    • Datamonitor Asia-Pacific Insight Reports
    • Datamonitor Global Wealth Service: Competitor Tracking
  • Datamonitor Financial Services Consulting
  • Asia-Pacific contacts
  • List of Tables
    • Table 1: Underlying macroeconomic factors, 1999-2004
    • Table 2: Onshore liquid assets held by mass market, premier banking eligible individuals and private banking eligible individuals, 1999-2004
    • Table 3: Proportion of adult population that are eligible for premier banking and private banking services according to threshold USD60,000 in investible assets, 1999-2004
    • Table 4: Liquid assets owned by individuals that would qualify for premier banking services split by liquid asset band
    • Table 5: Number of individuals that would qualify for premier banking services through liquid assets of between USD60,000 and USD1m split by liquid asset band
    • Table 6: Number of high-income taxpayers in Hong Kong by annual income, 2002-2003
    • Table 7: Average credit card spend by type of card, 2004
    • Table 8: Forecast macroeconomic factors, 2004-2008
    • Table 9: Forecast liquid assets of premier banking eligible individuals split by liquid asset band, 2004-2009
    • Table 10: Forecast number of premier banking eligible individuals split by liquid asset band, 2004-2009
    • Table 11: Forecast onshore liquid assets held by mass market, premier banking eligible individuals and private banking eligible individuals, 2004-2009
    • Table 12: Wealth markets that have been modeled using the Global Wealth Model
  • List of Figures
    • Figure 1: Methodology diagram and report structure
    • Figure 2: Property prices in Hong Kong have decreased considerably since 1997
    • Figure 3: Despite weak underlying macroeconomic conditions and a volatile stock market, retail assets grew strongly over the 1999-2004 period
    • Figure 4: The share of liquid assets owned by clients eligible for premier banking services increased over the 1999-2004 period along with the share of wealth owned by those with more than USD1m
    • Figure 5: Those eligible for premier banking in Hong Kong owned USD269bn in liquid assets at the end of 2004
    • Figure 6: The number of individuals eligible for premier banking increased by 37% over the 1999-2004 period
    • Figure 7: The average spend on premium credit cards is much higher than on standard cards, 2004
    • Figure 8: An assessment of selected online provisions for premier banking clients in Australia, Singapore and Hong Kong
    • Figure 9: UOB's Privilege Banking service is easily accessed from the bank's Personal Banking page
    • Figure 10: UOB Privilege Banking's website uses black and gold to give it an exclusive feel and to differentiate it from the bank's mass market services
    • Figure 11: The number of individuals eligible for premier banking is set to grow at an average rate of 5.2% over the 2004-2009 period
    • Figure 12: The premier banking population will maintain its share of wealth over the 2004-2009 period
    • Figure 13: There are a large number of high-income individuals in Hong Kong that appear to be overlooked by the premier brands, 2002-2003