Japanese asset manager Nippon Wealth has reportedly decided to stop offering services in Hong Kong after failing to add new customers.

The bank, which mostly caters to Japanese clients in the Hong Kong, recently informed its over 1,000 clients of the move, according to a report by Nikkei Asia.

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It has directed customers to transfer their current accounts to KGI Hong Kong, the regional operations of Taiwan-based KGI Securities.

Nippon Wealth, which majorly depends on face-to-face transactions, has been facing tight competition from online-based wealth firms.

Hong Kong’s 2019 pro-democracy protests and travel ban in the wake of Covid-19 pandemic also said to be added to the bank’s struggle.

Established through a joint investment by Japan’s Shinsei Bank and Monex Group, Nippon Wealth secured licence from Hong Kong regulators in 2015.

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It also obtained securities trading and securities advisory business licenses from the Securities and Futures Commission of Hong Kong the same year.

Nippon Wealth CEO Tsutomu Nakajima was quoted as saying by Nikkei: “Our confidence in Hong Kong’s potential has not wavered. We will explore new opportunities centered around Japan, Hong Kong, and Singapore.”

Hong Kong moves by other firms

Earlier this week, Singaporean robo-adviser StashAway, which offers intelligent asset allocation with global ETFs for both retail and professional investors, expanded its presence to Hong Kong.

Last month, American investment firm Cambridge Associates (CA) expanded its footprint in Asia by launching a new office in the region.

In February this year, Citibank officially launched its digital wealth offering Citi Plus in Hong Kong, after a pilot launch last December.