What's the state of wealth management in Asia today?
Whether you look at leading economies such as China or Japan, or study the numbers in emerging economies such as India, Indonesia, and Thailand, wealth in Asia is growing quickly. David Wilson, Head of Asia Wealth Management, Capgemini sheds some light on the region’s wealth management industry and what customers really seek.
Asia is an exciting place to be when it comes to wealth management. It is the #1 market or region globally in terms of HNW population and their wealth and is growing quickly. David Wilson of Capgemini points out that two decades ago, it was a completely different story. Their first report issued in 1996 featured Asia as the 3rd largest wealth market in the world.
According to Wilson, the region was able to climb the rankings sitting on the strong shoulders of mighty China and Japan for the most part. They’re the two largest markets in the region and account for about 75% of all HNW wealth. However, in 2016, those markets have seen a slight fall in the pace of their growth – which has been made up for by emerging wealth markets in Indonesia, Thailand, India all of which saw double digit growth.
A surge in political, economic, and financial risks has forced HNW individuals to look at investing in offshore propositions to safeguard their wealth. Capgemini’s study found that HNW individuals in APAC ex-Japan held 45% of their wealth offshore.
To stay relevant, Wilson advises wealth managers in Asia to improve their portfolio in terms of discretionary offerings, grow their talent base, and the transform the digital experience they offer to customers. In his eyes, the future is going to be about firms adopting a hybrid model, empowering advisors with the right digital tools to better interact with customers. According to Capgemini, that’s what customers really want to see happening.
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