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

Chocolate Finance joins Syfe and Endowus in targeting the city’s wealthy population and idle savings

Singapore wealth-tech firms are increasingly using Hong Kong as their first major overseas expansion market, betting that the city’s large pool of idle savings, deep wealth base and role as a regional financial hub will support the scaling of their retail investment platforms.

The latest entrant, Chocolate Finance, launched in Hong Kong last month with a product targeting retail investors’ idle cash. It offers 3.8 per cent 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 said the firm chose Hong Kong as its first overseas market because of the amount of idle savings in the banking system. He estimated about HK$4 trillion was sitting in local bank accounts, comprising HK$1 trillion in current accounts and HK$3 trillion in savings deposits.

“On average that’s about HK$500,000 per person sat in a bank account doing nothing,” he said.

Beyond the deposits, Jones said Hong Kong’s role as a wealth-management hub made it a natural first step outside Singapore, where the firm built and tested its product. He also pointed to the city’s high adoption of digital financial services as supportive of a fully app-based model.

Chocolate’s expansion path also reflects a practical constraint. Singapore’s domestic market is smaller, limiting how far platforms can scale at home, while Hong Kong offers a larger and more liquid pool of retail wealth without requiring a major shift in product design or regulatory approach.