As the wealth management sector pivots toward a digital-first paradigm, the challenge of scaling advisory services while ensuring high-quality client engagement looms large. Hugh Chung, Chief Investment Advisory Officer at Endowus, articulated this dilemma at the Hubbis Digital Wealth Forum in Singapore. With over 22 years of experience in asset management and financial advisory, Chung is at the forefront of integrating artificial intelligence (AI) and digital tools into wealth management, aiming to redefine the client experience for a diverse clientele.
Chung emphasized the need for scalability in a world where Endowus boasts over 100,000 clients, with asset holdings ranging from modest investments to portfolios exceeding $100 million. “We support our clients through a team-led advisory model, but with over 100,000 clients, scalability becomes essential,” he pointed out. This diversity necessitates adaptable solutions that cater to varying levels of sophistication and client needs. To meet these demands, Endowus employs a “building blocks approach” in its investment products, enabling clients to construct personalized portfolios within a structured framework. “We ensure that the products we offer are versatile, with the capability to support different client types,” Chung explained, illustrating how this method provides a robust foundation for scalable yet bespoke solutions.
In the discussion about AI’s role in wealth management, Chung made it clear that technology serves as an empowering assistant rather than a replacement for human advisors. Over the past two years, Endowus has successfully integrated AI into client servicing, managing around 75% of incoming client queries autonomously. This frees human advisors to focus on more complex issues that require nuanced understanding. “AI acts as an empowering assistant rather than a replacement,” he stated, highlighting the importance of maintaining the human touch in fostering trust within client relationships. While AI aids in data analysis and preliminary recommendations, final investment advice is still the purview of human advisors. “Trust is still the cornerstone of wealth management,” Chung asserted, reinforcing the idea that technology enhances, but does not supplant, the advisor-client connection.
On the investment side, Chung noted that while technology supports portfolio construction and fund selection, human oversight remains crucial. Endowus utilizes systematic fund strategies, blending passive and active strategies, but steers clear of being merely a “robo-advisor.” “We use technology to support our decisions but not to replace the human capabilities and judgment,” he remarked. This careful balance ensures that investment strategies are tailored to individual client needs, maintaining the essential human touch that technology alone cannot provide.
Looking to the future, Chung envisions a hybrid advisory model where AI complements human advisors. This model acknowledges that while digital tools can enhance operational efficiency and provide data-driven insights, it is the human advisors who offer the empathy and personal understanding that clients seek. “Our clients expect more than just data-driven results; they want trusted advice from someone they know,” he concluded.
Chung’s insights at the forum underscore a pivotal moment in wealth management, where the integration of AI and digital tools can enhance client experiences without compromising the essential human elements of trust and understanding. As the industry continues to evolve, the balance between technology and personal engagement will define the next chapter in wealth management.
