Grandtag Financial Consultancy & Insurance Brokers Ltd
- HKGCC Membership No. :
- HKG0521
Poised for Rapid Growth
Hong Kong-based Grandtag is no stranger to tough times. The fast-growing international financial product provider was established in 1999, when the SAR was going through a very painful economic restructuring in the wake of the Asian Financial Crisis. Originally a B2C company, it changed its business model to B2B following the deadly outbreak of SARS.
“My partners and I recruited four sales consultants to provide financial advisory services when we started the business. In 2003, with SARS, no one wanted to meet anybody, so many independent financial advisory firms went out of business,” Grandtag CEO Jameson Leungexplained. “We had zero business in Hong Kong for six months after the SARS outbreak.It was a tough period.”
The crisis forced the four founding partners to rethink their business strategy, and seeing a niche in the underserved B2B international financial product providerbusiness,they redrew their business map. But thetransformation was not without its challenges.
“Some copycats, who represent the same insurance company that we represent in Hong Kong, approached our sales channels in Taiwan by offering them higher commission for selling similar products. We lost some sales channels that look at the price more than the service. Nonetheless, we believe the key to success is offering outstanding long-term services,” Leung stressed.
Another challenge for the company was maintaining the quality of its sales channels. All new sales channels staff need to undergo a three-day training programme in Hong Kong ensure they have the financial knowledge to ability to deliver quality services. They also receive extended training once a quarter to make sure they are up to speed on the latest financial products, he added.
Product portfolio
The growing appetite for international financial products in Asia has enticed local independent financial advisors (IFA) to diversify their product offerings.
“The local financial products that an IFA, say in Thailand, can offer may not be able to satisfy the demand from their clients. That is where Grandtag excels. We can offer a wide range of products from financial advisory services, asset management to insurance,” he said.
Some 95% of the products that it offersare from international mutual fund companies, insurance companies and banks, while the remaining 5% are its own products. For example, some international financial products may not be registered in a certain country. Therefore, if someone in that country is interested in takingup a certain investment or insurance product that they cannot buy at home, they can to fly to Hong Kongto sign a contract.
“Currently, about 75%of our Asian clients fly to Hong Kong to buy such international financial products. We offer them first class accommodation and serviceswhen they are here,” he explained.“That is where we stand out from the others. Our services extend beyond far beyond financial products.”
Market outlook
With 2012 expected to remain unstable from the lingering effects of the global financial crisis, Leung is nonetheless full of optimism.
“Investors are now more skeptical about their investments, especially after the European debt crisis. Even sovereign bonds, considered as safe haven investment, are no longer classified as a safe asset,” he explained. “Therefore,the challenge for investors is how to build up their wealth with the right investment tools.”
Investors remain willing to take calculated involved when buying financial products, but the financial crisis has taught them the importance of better understanding the products and associated risks.
“Investors are now more inclined to seek professional financial advice,” he said. “Therefore, we have allocated more resources to our research department, which produces regular reportsto our financial advisors who pass on thisinformation to their clients.
In the long term, Leung expects financial marketswill fare well on the back of a recovering U.S.economy and the fast-growing emerging markets. He suggests investors should look more closely at the U.S.real estate market, which is grossly undervalued. He also believes the fast-growing emerging marketsperforming well, which are increasingly seen as an engine for world growth.
Mainland China is also another high-growth market for international financial products.
“The growing middleclass in China have limited global investment opportunities. The richer the Chinese become, the broader their demand for financial products and servicesbecomes. We are well-positioned and ready to serve the burgeoning demand from the Mainland,” Leung said.
