Helping Asian Wealth Management Communities interact

Middle East Wealth Management Forum 2020 - Exclusive Insights - Madhavan Sivashankar - 2

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1. The vast majority of AUM remains with private banks and bankers – with investment decisions still driven by the client on an advisory basis. Will this change? What’s the value that an MFO brings? How do you compete?

Video transcript

1. The vast majority of AUM remains with private banks and bankers – with investment decisions still driven by the client on an advisory basis. Will this change? What’s the value that an MFO brings? How do you compete?

I think culturally speaking, a lot of investment decisions have been driven by the clients themselves in the past and the private banks have actually collaborated with the client in making sure that investment happens, but now with the next generation who are more focused on business, have availed international education, they have now left it to the professionals to run it. As far as the private banks are concerned, per se, high cost overheads are forcing them to shrink. And we believe that that is leading to introspection, and we believe that that is going to then change the impetus to MFOs. Because MFOs are lean and mean. They're able to cover more efficiently from a cost perspective, and that will bring the real opportunity for MFOs in the years to come, in my opinion.