HSBC’s 2025 Affluent Investor Snapshot (AIS), drawn from a survey of more than 10,000 individual investors across 12 Asian markets, points to a decisive reallocation of assets. Cash allocations have dropped by around 40%, while interest in alternatives, particularly private markets and gold, has surged. This rebalancing reflects how investors are adjusting to inflation, interest rate uncertainty and market volatility. Affluent investors turn to gold and private markets Lavanya Chari, global head of wealth and premier solutions, HSBC stressed that diversification remains central: “One of our CIO's core messages to clients is diversification,” she said, noting that diversified portfolios have consistently outperformed concentrated ones over long cycles. Gold is benefitting both as a defensive hedge and as a more digitised, accessible asset class. Private markets, once confined to the ultra-wealthy, are now entering mainstream affluent portfolios. HSBC had a record year for alternatives in 2024, with 49% of inflows into private markets coming from first-time investors. For Chari, this milestone underlines how much demand is broadening: “It indicates the level of interest from clients who had never invested in private markets before.” New structures such as open-ended funds are lowering barriers, enabling affluent clients to access private equity, private credit and other asset classes without facing the same illiquidity constraints as before. Even with this growth, clients remain under-allocated relative to its chief investment officer (CIO) guidance, leaving room for expansion. Priority is placed on ensuring that alternatives are understood as part of a long-term strategic allocation, not short-term speculative plays, Chari explained. HSBC is embedding this perspective into advisory conversations to encourage disciplined portfolio construction. At the same time, competition in alternatives is heating up. Other global and regional banks are rolling out private market access platforms, and fintechs are experimenting with digital distribution of private equity and credit funds. As these products become more widely available, the real differentiator will lie in advisory quality, risk education and portfolio integration, rather than mere access. Generational confidence and digital fluency reshape engagement Demographic shifts are reshaping wealth management across Asia. The global wealth transfer of an estimated $70 trillion in the coming decades will increasingly put assets in the hands of younger cohorts. Millennials and Gen Z already show markedly different behaviours: they start investing up to 10 years earlier than older generations, are more financially educated, and review portfolios more frequently. “They are much more digitally savvy, they want regular engagement and they start investing much earlier in their lives,” Chari noted. This fluency drives demand for both digital execution tools and planning platforms that visualise long-term goals. HSBC has expanded digital trading capabilities across markets, making structured products and other instruments available online to meet this demand. The AIS also shows that younger investors express greater confidence in their ability to achieve wealth goals than older cohorts. This confidence, coupled with earlier entry into investing, is a defining characteristic of Asia’s next generation of clients. It creates opportunities for deeper engagement but also demands new advisory models that cater to multi-generational households with differing expectations. Product innovation is one way HSBC is bridging these gaps. Chari highlighted the success of Prism, HSBC’s contractual advisory platform powered by BlackRock’s Aladdin. By combining CIO-led asset allocation with analytics and personalisation, Prism appeals to the bank’s private banking clients across generations. Still, HSBC is not alone in this pursuit. Competitors are testing hybrid advisory models of their own, from robo-advisory platforms to partnerships with third-party asset managers. Some challengers have leaned into fee-only advice or algorithm-driven allocation engines that offer lower costs. The question for HSBC will be how effectively it differentiates Prism and Future Planner in a market where digital-plus-human engagement is quickly becoming the industry baseline. Hybrid advice becomes the dominant model Despite digital transformation, relationship managers remain indispensable. The AIS survey found that 64% of affluent investors in Asia still view relationship managers and wealth advisors as their most trusted source of advice. For Chari, this affirms that the future is hybrid: “Clients want digital convenience, but they also want the ability to speak to a trusted advisor.” HSBC is building this hybrid journey through platforms that blend self-directed tools with advisory engagement. HSBC’s Future Planner tool, for example, allows clients to define life goals such as retirement, children’s education, entrepreneurship or philanthropy, and then map them to investment strategies. Chari said feedback has been “very positive,” with clients valuing the clarity of connecting aspirations directly to financial planning. On the advisor side, technology is enhancing productivity and customisation. HSBC leverages AI and innovative technologies to provide relationship managers with CIO-driven insights that can be used to support to investment and market-related queries relating to client portfolios. Artificial intelligence (AI) is also becoming embedded in operations. HSBC has deployed AI for know-your-customer (KYC) onboarding, credit research and coding support — tools that improve internal efficiency and free advisors to focus on higher-value client engagement. Chari noted that while AI may later extend into client-facing services, the immediate priority is strengthening the advisory backbone. Competitively, however, hybrid advice is becoming the industry standard rather than a unique differentiator. Regional peers and fintech challengers are scaling low-cost digital platforms with strong analytics. The pressure for HSBC lies in delivering a hybrid model that goes beyond convenience and becomes genuinely value-added, ensuring clients perceive measurable benefits compared to cheaper alternatives. Cross-border wealth defines Asia’s next growth wave Cross-border flows are becoming one of the most powerful forces in Asian wealth management. HSBC estimates that $15 trillion moved across markets in 2024, driven by both outbound diversification and offshore inflows. Chari underscored HSBC’s positioning, “We want to be there for our customers when they have international needs, wealth needs or business needs.” Singapore, Hong Kong and the United Arab Emirates (UAE) are strategic wealth hubs. HSBC is scaling wealth platforms in these markets, while consolidating its leadership in Hong Kong, which Chari described is set to become the “leading cross-border wealth hub.” Recent initiatives highlight this strategy. HSBC has launched an enhanced Premier proposition structured around health, wealth, travel and international access in a number of markets including Singapore and Malaysia, which Chari said has been “very well received.” In Hong Kong, HSBC opened 600,000 new-to-bank accounts in the first half of 2025, demonstrating the scale of demand for international wealth services. Cross-border corridors such as China–Hong Kong and Asia–Middle East are particularly important. Clients are demanding real-time visibility, seamless money movement, and instant cross-border transfers. HSBC is harmonising its International Wealth and Premier Banking platforms across markets to ensure consistent experiences for clients with multi-market portfolios. Yet competition in cross-border wealth is fierce. Global peers are also investing heavily in Hong Kong, Singapore and the UAE, while regional banks with strong domestic franchises are looking to capture outbound flows. HSBC’s global network is an advantage, but rivals are targeting the same corridors. Success will depend on execution and whether HSBC can deliver consistency across markets where regulatory frameworks and client expectations still diverge. Ultra-wealthy clients seek institutional-grade solutions At the top of the wealth spectrum, HSBC is scaling its Triple I (Investment Intelligence for Sophisticated Investors) platform, which provides ultra-high-net-worth individuals (UHNWIs) and family offices with access to co-investments, private financing, and institutional strategies. Chari explained that the ultra-wealthy expect a holistic continuum: “We pride ourselves on our ability to meet all their needs — investment, business, succession, and philanthropy.” Triple I leverages HSBC’s One Bank capabilities, enabling clients’ access to institutionalised, co-investment opportunities, and liquidity solutions alongside wealth strategies. This integration allows HSBC to meet both personal and business needs of its wealthiest clients, differentiating it from banks with narrower wealth propositions. The CIO investments team has also been strengthened, focusing on portfolio-based advice anchored in strategic asset allocation. This approach applies across advisory and discretionary mandates, supporting disciplined, long-term wealth strategies. But here too, the landscape is competitive. Family offices increasingly spread mandates across multiple global and regional banks, reducing reliance on a single provider. Boutique private banks and new entrants are offering highly bespoke services, challenging larger players on intimacy and agility. HSBC’s advantage is its breadth and balance sheet, but it must continually prove that scale translates into tangible value for UHNWI clients who often prefer diversification of counterparties. Strategic outlook: Demographics, ESG and sustained growth Looking ahead, HSBC expects its international wealth and premier business to deliver double-digit average annual growth in fee and other income growth over the next five to ten years. Chari attributed this to underlying growth in the market partly driven by demographic trends, product innovation and the strength of HSBC’s global network and brand The silver economy is one driver: by 2050, more than two billion people will be aged over 60, creating demand for retirement solutions that combine wealth, health and lifestyle planning. HSBC is investing in holistic propositions to capture this demographic, complementing its focus on next-generation investors. Growth will remain primarily organic, but Chari shared that HSBC would be open to inorganic opportunities in Asia where they align with strategy. Strategic investments are concentrated in ASEAN, Hong Kong, Singapore and the Middle East, which HSBC sees as emerging global wealth hubs. Sustainability is also central. Chari described HSBC’s environmental, social and governance (ESG) proposition as client-led. Some investors prioritise education, others impact strategies or thematic funds, and some want tools to monitor portfolios against net-zero targets. Regulatory obligations vary across markets, but HSBC’s aim is to provide flexible solutions tailored to individual client objectives. Even here, however, HSBC faces no shortage of competition. ESG has become a crowded field, with asset managers and banks alike marketing impact products and sustainability frameworks. Delivering differentiated ESG propositions will be essential if HSBC is to avoid being drowned out in a space where client scepticism about “greenwashing” is also on the rise. Chari articulated a strategy grounded in scale, flexibility and cross-border reach. But execution risks remain, pricing pressure from digital challengers, strong international peers in core hubs and client fragmentation at the ultra-wealthy end all complicate the picture. HSBC’s ambition to be the leading international wealth manager in Asia and the Middle East will depend not just on leveraging its global network but also on navigating an increasingly crowded and competitive landscape.
