Why Singapore wealth-tech firms are choosing Hong Kong as their first overseas market

Singapore-based wealth-tech firms are increasingly using Hong Kong as their first major overseas expansion market, betting on the city's massive pool of idle savings and its status as a regional financial hub. Chocolate Finance, the latest entrant, launched in Hong Kong last month with a product targeting retail investors' idle cash. It offers 3.8% annualised returns on the first HK$100,000 (US$12,763) with no minimum balance, no lock-up period, and daily interest accrual. CEO Tim Jones estimated that about HK$4 trillion sits idle in local bank accounts, roughly HK$500,000 per person. He noted Hong Kong's high digital adoption and its role as a wealth-management hub made it a natural first step outside Singapore, where the firm built and tested its product.

Beyond Chocolate Finance, other Singapore wealth-techs like Syfe and Endowus have also targeted Hong Kong's wealthy population. The city offers a larger and more liquid pool of retail wealth compared to Singapore's smaller domestic market, allowing these platforms to scale without major changes in product design or regulatory approach. The trend underscores how fintechs from Singapore see Hong Kong as a gateway to the broader Asian market, leveraging similar regulatory frameworks while tapping into trillions in idle deposits. This expansion could intensify competition in Hong Kong's retail investment space, pushing incumbents to improve offerings and yields for consumers.