APAC – the fastest growing wealth market

Funding the Future with Fintech and WealthTech

The COVID-19 pandemic has become an agent of change which has accelerated the digitalisation of many industries. Almost overnight, business models transformed, posing new challenges and opportunities to navigate.

Due to competitive digital offerings offering deep insights into products and services to enhance growth, the APAC wealth management market remains poised for skyrocketing expansion.

Asia Pacific Wealth Management Boom

According to research, the APAC wealth management market size is growing at a CAGR of 12.7% from 2021 to 2030 and projected to reach US$811.50 billion by 2030 from US$247.85 billion in 2020. APAC’s ultra-high-net-worth individuals (UHNWIs) with assets of more than US$30 million is forecasted to grow 33% by 2025, at the fastest rate in the world.

The digitalisation of wealth management services by Fintech companies have largely disrupted the wealth management industry. The growing demand for hyper-personalised wealth management products and services are also fuelling its market growth in the region. Lastly, increased technological advancements such as AI, chatbots, robo-advisor platforms, user-friendly digital and voice-enabled assistants, IOT and big data analytics have propelled digital customer experience. Growing urbanisation in the region has also led to the accelerated growth of infrastructure and real estate projects along with other initiatives, resulting in the APAC wealth management boom.

Major Trends In Digital Capabilities of Wealth Management For A Competitive Edge

To tackle the intense competition in the market, banks are offering more products and services online, partnering with FinTech and WealthTech firms to devise advanced features for clients such as comprehensive user-friendly dashboard- with top-notch data visualisation tools and intelligent portfolio recommendations, robo-advisory platforms, processing live and historical data, storytelling tools for effective virtual interactions, voice-to-text technologies, AI, machine learning and so on to better equip financial advisors to offer quick, customized and sound advice. Digital customer experience providing automated digital solutions can also identify clients’ life goals and find matching solutions. This helps banks provide a broad range of services to expand their reach.

Banks should also train their client-facing advisors on virtual advisory skills, both one-on-one sessions with clients as well as broad-based webinars to increase engagement, conversion rates and overall Assets Under Management (AUM), ultimately strengthening their capabilities as digital banks.

Most leading regional banks across Asia are now integrating their trading services for clients on their online platforms and apps. These include investing in securities and funds, monitoring stock prices, providing real-time analysis and research insights. These sophisticated banks are also using big data analytics to obtain insights on client behaviour, financial attitude, investment motivation and patterns, what drives revenue and loyalty, and data mining to prospect new clients for targeted financial products.

Despite the COVID-19 pandemic, Assets under Management (AUM) in Singapore have been rising year on year to reach nearly US$5 trillion and the growing number of family offices has developed a thriving wealth management ecosystem. As the country pivots into the next phase of wealth management to focus on the ultra-rich, an evolving ecosystem to support the changing needs of high-net worth investors is critical.

The ongoing global industry revolution will hail an era where the banking, financial services and insurance industry should seize the opportunities to experience massive growth, while navigating emerging challenges in this evolving APAC wealth management landscape.

To learn more on helping investors access and tap into the most profitable windows of opportunity, contact us.