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Hong Kong : Unmet Needs of High Net Worth Individuals in Asia-Pacific Drive New Opportunities in Wealth Management.

The unique wealth needs of High Net Worth Individuals (HNWIs)1 in Asia-Pacific (excl. Japan) significantly sets them apart from HNWIs in the rest of the world, yet wealth managers differ on how well they understand these needs, according to the Asia-Pacific Wealth Report 2015 released today by Capgemini and RBC Wealth Management. Almost 88 percent of wealth managers feel that they understand HNWI needs, yet only 73 percent of HNWIs agree. The close to 15 percentage point gap is higher than the rest of the world2 gap (nine percentage points).

The 2015 report reveals that more than 70 percent of HNWIs in Asia-Pacific (excl. Japan)3 show a strong desire for professional advice, almost 20 percentage points more than the rest of the world. In addition, demand for digital capabilities, credit availability, and wealth management services is high across Asia-Pacific HNWIs of all ages and wealth levels compared to the rest of the world. These unique differences are forcing wealth managers and firms to develop solutions that address both the pace-setting wealth growth and significant wealth transfer taking place in the region in order to better meet HNWI needs in Asia-Pacific.

The continued growth of wealth in Asia-Pacific and an increase in wealth transfer to the next generation risks broadening the apparent disconnect between HNWIs and their wealth managers, said Andrew Lees, Global Sales Officer, Capgemini s Financial Services Global Business Unit. Investment in digital and automated services will be a key differentiator for Asia-Pacific wealth management firms seeking to meet HNWIs desire for digital and will also equip wealth managers to offer more personalized services and opportunities.

Emerging Asia-Pacific economies (particularly India and China) are moving away from agriculture to industry and services fueling the expansion of HNWI population and wealth. Over the next 15 years, up to 80 percent of all wealth in the region could transfer to the next generation. This wealth transfer will come with unique challenges and concerns for the wealth management industry. Specifically, 63 percent of younger HNWIs (under 45 years) are highly concerned with the rising cost of education, and more than half (58 percent) are concerned with identity theft and personal financial crime. Concerns from HNWIs over the age of 45 center around potential family conflict during succession planning, their aversion to discussing wealth transfer, and their doubt around the ability of the next generation to manage wealth. Wealth managers will need to be more attuned to key concerns of younger and older HNWIs, and wealth management firms will need to broaden their relationships within HNWIs families to better manage intergenerational wealth transfers.

In addition, the Asia-Pacific region has the highest proportion of HNWIs who are business owners at 19 percent, compared to 14 percent in the rest of the world. Providing wealth managers with training and tools to support these business owners with goals-based wealth management will be important for success in Asia-Pacific.

[c] 2015 Al Bawaba ( Provided by SyndiGate Media Inc. ( ).

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Publication:Mena Report
Date:Sep 16, 2015
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