What does it take to build a “Hong Kong Brand” for financial services?

Norman T.L. Chan, chief of Hong Kong Monetary Authority in his latest speech looks at the HK brand of finance.

It always is around quality and credibility whatever the brand. This is more so with financial services as people’s savings are involved.

  1. Today I would like to talk about building Hong Kong as a “Brand” for financial services.  So what is a “Brand” made up of?  For merchandise goods, “quality” and “credibility” are two major components of a “Brand”.

Quality

  1. Quality means the product or services are suitably designed, structured and built to meet the needs of consumers/customers.  In the field of fashion or luxury goods, customers’ taste is evolving all the time but very often the “Brand” actually takes the lead in shaping the trend.
  2. In the context of financial services, the concept of “quality” entails the availability of a wide range of financial products that can adequately and effectively meet the needs of customers with vastly different financial needs.  For individual customers, such products range from the basic banking services for the mass market, to very sophisticated private wealth management services for high net worth customers.  For corporate customers, quality products range from the basic transactional banking for the SMEs, to the very diverse and sophisticated services in treasury, hedging, and equity and debt financing for the very large corporates. 
  3. If Hong Kong is to become a “Brand” for financial services, it must be able to offer “quality” financial products and services.  This means that we should have ample supply of financial products and services that:

(a)           can effectively meet the needs of customers, be they individuals or corporates;

(b)          are competitively priced; and

(c)           are efficiently distributed through a network of intermediaries that treat customers fairly.

  1. So where does Hong Kong stand now in terms of “quality”?  If we benchmark Hong Kong against any of our regional peers, I would say Hong Kong stands out as one of the best in this regard.  It is hard to pinpoint any key areas in which Hong Kong would have a material gap in offering a suitable and competitive product to meet the financial needs of the customers. 
  2. Credibility
    1. As I am running out of time, I just wish to have a brief word on the second component of a Brand, and that is credibility.  It is not enough just to sell good quality products to customers.  Like any world class brands in cars, watches and luxury goods, post-sale maintenance or support service is equally important.  In other words, the success of a “Brand” also rests on establishing a reputation for being credible – to deliver a product that stands up to what it is sold for.
    2. Credibility is even more important when it comes to financial services.  This is because financial products usually have a finite life, and very often customers need to renew or purchase similar or different products from time to time.  To develop into a long-lasting and successful “Brand”, Hong Kong must be able to provide a platform for offering products that can effectively meet the changing needs of customers.  While such needs are always evolving, one thing never changes, and that is “fair treatment of customers”.  In the context of pricing, consumer/investor protection, distribution, dispute handling and resolution, the interests of the financial firms or intermediaries must not take precedence over those of the consumers or investors.  This is a difficult mission to accomplish as it requires not only a robust and yet user-friendly regulatory regime, but also a corresponding change in the culture, values, mind-set and behaviour of the financial firms and their staff.   As hard as it seems, I strongly believe that we cannot afford not to accomplish this mission.  We must try harder and harder until we have got it right.                    

      I simply cannot envisage how a financial centre can thrive and sustain its competitiveness over time if it cannot build a credible reputation for treating customers and investors fairly.  

Simple stuff. Still needs to be emphasied over and over again.

Finance is less about all the glitz and glamour it is known as today. At its core, it shares the same ideas of quality and credibility as all other products and services..

One Response to “What does it take to build a “Hong Kong Brand” for financial services?”

  1. mehrg Says:

    Sent from my iPhone

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