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Digital Wealth Asia Forum 2019 HK - Highlights - Jay Sala

Jay Sala of EY

Nov 29, 2019

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1. What are the challenges and opportunities for this industry?

Video transcript

1. What are the challenges and opportunities for this industry?

Wealth management in Asia is at a very interesting time. I think everyone's very familiar with the macro picture about growing income, the rise of the middle class, the accumulation of assets at the retail and institutional levels. But I think that behind that shows there are quite a few challenges. Investor appetite has clearly had been affected by macro, as well as some of the local events, right? That's affecting, in many cases, the revenue opportunities for firms, right? So many firms are not necessarily participating in the economic upside in Asia that they were expecting. I think coupled with that, we're seeing that the cost of doing business and complexity of doing business in Asia has been rising, right? You have fragmentation across many markets which we've seen over time, but regulatory demands are becoming steadily more and more complicated. We see that the client demands are changing, particularly as you have a transfer of wealth from one generation to the next. And the buying profile and the preferences of the future generation, the next gen, are very different from the past. That's leading to increasing demand for things like digital, right? In some cases, it's remediation of the increased complexity of controls, right? But in some cases, people just want to be able to receive advice in a very, very different way. I think what we're hearing from the market is that clients want more advice and they want the flexibility to really be in touch with their finances and with their institutions 24/7. But sadly there's a lot the firms have to do in terms of the way they handle data, the way they think about the client experience, the way they put in place enabling infrastructure, and frankly almost retrain the front line, and the businesses whole, to really respond to these needs. So, we're really talking about the need for transformation.

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