Table of Contents
Preface 3
Executive Summary 5
Asia-Pacifc Continues to Fuel Global HNWI Population and Wealth 7
Asia-Pacifc remains the worldwide leader in HNWI population and wealth 8
Emerging Asia surpasses Mature Asia in HNWI population and wealth growth 11
The region’s ultra-HNWIs maintain growth pace 12
Asia-Pacifc wealth growth ahead of projections, on track to reach US$42 trillion by 2025 12
Personal Connection is Critical to Client Satisfaction and Wealth Industry Success 15
HNWIs unfazed by robust investment returns, satisfaction muted 16
Lack of holistic services and tailored solutions hold back HNWI satisfaction 16
Personal connections between HNWIs and wealth managers lag in key Asia-Pacifc markets 18
Firms that improve client intimacy open the door to more assets under management 20
Equities retain preferred asset class status, but lose ground to cash and real estate 21
Hybrid Advice Model Transformation Must Be Fast-Tracked Amid Potential BigTech
Disruptions 23
Firms embrace hybrid advice transformation but fail to meet HNWIs’ expectations 24
Asia-Pacifc (excl. Japan) HNWIs value account aggregation services 25
Competition intensifes as HNWI interest in BigTech oferings rises 27
Multiple scenarios for BigTechs to enter the wealth management space 31
Wealth management frms must prepare to invest for success to cope with an evolving landscape 33
The way forward for Asia-Pacifc frms 34
Appendix A 36
Appendix B 38
About Us 42
Acknowledgments 43ASIA-PACIFIC WEALTH REPORT 2018
Preface
Asia-Pacific continued its growth trajectory in 2017, extending its lead over other regions for high net worth
individual (HNWI) population and wealth.1 A stellar performance puts the region on a comfortable path to
surpassing US$42 trillion in HNWI wealth by 2025, as we projected in the World Wealth Report 2016.
Despite high return on investments, Asia-Pacific HNWIs’ satisfaction with their wealth management firms
remained significantly lower than that of their counterparts in the rest of the world. This dissatisfaction may stem
from unmet demands for holistic wealth services and customized solutions, as well as discomfort with what they
perceive as high fees for the quality of services delivered.
In addition to high returns and the delivery of sophisticated services, a strong personal connection between
HNWIs and their wealth managers is critical to enhanced client satisfaction. Wealth management firms need more
innovative approaches to targeting, retaining, and building client relationships. Considering that HNWIs in certain
markets have higher willingness to adopt new ways of choosing a wealth manager, firms need to prioritize these
markets to provide focused solutions.
With increasing trend of wealth consolidation among many HNWIs, robust personal connections may put
managers in a good position to convince clients to increase their firm-managed assets. The likeliness of assets
under management (AUM) consolidation increases when HNWIs feel strongly connected to their wealth
management firms.
Technological advancements and HNWI demand for hybrid advice have encouraged wealth management
firms to embrace hybrid business models.2 Most Asia-Pacific firms are making progress, but full hybrid-advice
transformation remains a future state. HNWI satisfaction with hybrid services dropped year over year, so clearly
work remains to be done.
These days more and more BigTech firms are exploring financial services opportunities and Asia-Pacific HNWIs are
becoming increasingly curious about BigTech wealth management offerings.3 This is why – now more than ever –
hybrid transformation is competitively critical for established wealth management firms. Clearly, the probability
is high that Asia-Pacific (excl. Japan) HNWIs will consider turning to BigTechs to meet their dynamic wealth
management needs.
As BigTechs begin to compete in the wealth management space more aggressively, multiple entry scenarios and
models may emerge. The question is, how will incumbents respond to the industry’s changing dynamics
We hope you find the Asia-Pacific Wealth Report 2018 to be useful in mapping short- and long-term strategies.
1HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles,
consumables, and consumer durables
2We define hybrid advice as “Putting clients in the driver’s seat by allowing them to tap into life-stage and need-based wealth
management and financial planning capabilities in a modular, personalized, pay-as-you-go manner.”
3BigTech is a general term for data-driven tech firms not traditionally present in financial services: Amazon, Google/Alphabet,
Alibaba, Apple, Facebook, and Tencent
Anirban Bose
FS SBU CEO & Group Executive Board Member
Capgemini。。。