8JULY 2020IN MYOPINIONThe Liberalization of Investment: Putting Wealth Within ReachThe days when a relative minority of people can invest and manage their money effectively are coming to an end, rapidly brought about by new technologies. Alongside this, the behaviour of a new generation of investors will reshape investment in ways we can't even currently imagine--they are the drivers of a sea change in the wealth management industry.From the perspective of the banks, there has long been a vast untapped source of opportunity among consumers of certain demographics--for example, those commonly referred to as "mass affluent". According to Accenture, past attempts to target the mass-affluent market have largely failed because of high servicing costs. There is truth to this: wealth investing has traditionally been conducted face-to-face through a relationship manager, and the costs of managing a portfolio manually mean that the minimum amount needed to invest can be prohibitive for some.This means investing is challenging for those on the spectrum who find themselves at or close to spending their monthly income--for example, younger new entrants into the workforce. But, digital channels can be used to give anyone immediate access to portfolios; robo-advisors can take some of the role performed by relationship managers; and increasing back office efficiencies are reducing the minimum amount needed to invest.Building habit-forming behavioursImagine you've just made your New Years' resolution; you'll start bringing your lunch to work every day. You save around HK$100 (US$13) each time you do this instead of eating out. Now imagine that as a habit, every time you bring your lunch to work you immediately move the money you just saved into an investment portfolio, with a few swipes on an app. New digital platforms--HSBC's FlexInvest among them--mean investing as little as HK$100 is suddenly a reality. Stick to your New Years' resolution and over time you'll be able to see the benefits of building a portfolio, even in small increments.And the opportunities for gamifying this experience are endless as money management becomes more digital, engaging, and intuitive. Instead of an obligation or an afterthought, investing becomes a positive habit--part of your daily banking experience.The social implications of this could be significant--groups of people who currently have limited ability to build By Kevin Martin, Global COO and Head of Digital Transformation, Wealth and Personal Banking, HSBC [LSE: HSBA]Kevin Martin
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