The US bank has engaged the services of luxury concierge company Ten Group, to cater to its affluent credit card holders in Hong Kong. Hong Kong-based clients of Citibank’s Ultima credit card will get access to unlimited concierge services for free at any time of day or night – which include anything from restaurant bookings to travel arrangements. 

The announcement comes after a report published in December revealed a widening rift in trust and communication between Asian high net worth individuals and their wealth managers – underlined by the difference in opinion over concierge services.

In the survey Value of Trust published by Singapore-based Bruce Weatherill Executive Consulting, while 43 per cent of Singaporean clients and 22 per cent of global clients rated access to concierge and card services as a top reason for choosing a wealth manager, not a single wealth manager thought these services were important. 

But as margins grow thinner, the global economy flounders and differentiation becomes increasingly difficult between banks, a number of banking firms have signed up to Ten’s services in recent months. These include UK lenders Barclays, Lloyds, RBS Group, and Switzerland’s UBS.

A competitive edge

Ten chief executive Alex Cheatle agrees that the firm’s success partly lies in being in the right place at the right time. Banks are increasingly looking for external concierge services to woo rich clients, particularly in Asia where the millionaire population now outnumbers Europe – and is still growing fast. While private individuals may be cutting back on discretionary costs, ninety-five per cent of Ten's business is now corporate, a part of the market which is going from strength to strength, he said. “Concierge is a valuable customer loyalty benefit which is proven to work for international finance brands."

However, he adds, Ten’s customer service has also helped it grow through recommendations. “Ten created the blue print in lifestyle management, having first started out in 1998. We have market-leading staff retention, far ahead of competition. We value our lifestyle managers for their expertise and it helps to have people who really get to know our members over time. Our clients expect first rate service and second-to-none local knowledge,” he added.

To test Ten’s aptitude, Citi made a number of timed trial requests including sourcing a luxury handbag only available in Europe, and an urgent recommendation for an allergy-catering restaurant in Taipei.

The service will be 24/7 and provided in English, Cantonese and Mandarin. Members of the service based in Hong Kong will benefit from the connections and expertise of Ten’s lifestyle managers in Hong Kong and, if required, any of its other offices worldwide.

Sustainable growth?

But Ten is far from alone in the market. International SOS, Mondial and AXA Assistance already occupy a substantial share of the corporate market in Asia. Other concierge firms are entering the region, eager for a slice of the pie. Quintessentially, the concierge launched in London’s trendy Soho eleven years ago, recently relocated its chief executive to Hong Kong in a bid to grow market share. It, too, has a number of corporate licenses with banks, although it would not disclose them to WealthBriefingAsia.

Fiona Foxon, Hong Kong manager for Quintessentially, said the firm has witnessed "incredible growth in the demand for corporate and VIP client retention programs. This is now a cornerstone of our Quintessentially corporate membership offering".

"Over the past five years, the landscape in Hong Kong has changed, in particular, within the financial sector. The industry is all about relationships, and as their clients have grown more demanding of bankers, bankers and their support teams need trusted advice, access and insights, available 24/7, 365 days a year. We very simply become an extension of their internal teams to deliver our world-class concierge service focused entirely on their key clients," added Foxon.

Competitors say that Ten’s rapid expansion rate means that the ratio of members to lifestyle managers cannot possibly equate. Ten has over 1 million private individuals on its books on behalf of around 70 firms, but employs just 350 to cater to them. It says it receives “35,000 complex lifestyle requests per month” – working out as over 25 per week per member of staff.

Mindful of this imbalance, over the next 12 months Ten wants to increase employee numbers by a quarter and to open new offices in Sao Paulo, Mexico City, Tokyo, Singapore and Shanghai. The firm currently has offices in London, New York, San Francisco, Miami and Hong Kong.

One thing in favour of concierges are their value-for-money fees, compared with, say a full time personal assistant. An individual Ten membership costs around $5,400 for a personal lifestyle manager, while Quintessentially charges from HK40,000 ($5,100) in annual membership, though this can soar to an eye-watering HK300,000 for individual elite membership. The current climate could see more individuals cut back on PAs, instead using their concierge membership from their bank to book tables, travel and appointments. 

And if a bank can afford it, why not? Although neither firm breaks down individual corporate membership rates, a single request costs in the region of $75 to execute. A network like American Express will tell you that its iconic invite-only Centurion Card, often referred to as the Amex Black, garners interest from a lot of new customers. In an industry were margins are growing thinner and thinner, anything that helps increase new assets should be of interest to banks. Said Foxon: "Clients are happy, banks are happy; everyone wins."