Mapping out the future for Asian wealth management
Our 7th annual event in Singapore for the regional wealth management industry brought together 400 senior individuals from across the community to discuss and debate the risks and opportunities ahead.
Despite Asia’s well-documented growth in wealth, the time has come for a reality check. Only a small number of private banks are profitable and the industry is increasingly polarising; with the larger, universal institutions on the one hand, and more focused boutique advisory firms at the other, making more headway. A look at where the net new money went over the previous 12 to 18 months has been clear evidence of this.
Discussions focused on how to address industry shortcomings, such as business models overly-reliant on transactional revenue, continued challenges in raising competency and productivity, onerous compliance obligations, and limited real innovation or automation.
In the face of the growing pace of consolidation in Asian private banking, for example, over the last 24 months, the focus was on trying to find solutions to the lack of differentiation in strategies and value propositions of many organisations vying for market share.
Further, with insurance companies making a foray into wealth management in Asia, the landscape is changing quickly.
Going forward, individual players agreed on the urgency to drive needs-based conversations with the right clients, backed up by real advice and relevant, contextual information.
Local institutions onshore also need to seize their opportunity to position their wealth management offerings as more strategic within the wider group. This is timely, as many foreign firms struggle with the demands of transparency and tax-related initiatives.
More from Andrew Crooke, Hubbis