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May 26, 2022

Wealth managers must speed up the digitalisation of their retirement services

By GlobalData Financial

The retirement and pension services industry has been slow to digitise. With simplicity and customer experience coming to the forefront of the wealth management space via technology, utilising emerging technologies to manage pension services will be welcomed by customers.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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GlobalData’s 2021 Financial Services Consumer Survey conveys that while more than half of retired investors globally do prefer traditional players to manage their investments, there is still a notable proportion that would favour digital players and the customer experience they bring to the table. So, traditional players should not be resting on their laurels assuming that only millennials are keen on new digital wealth management services. Despite not being digital natives, the older generation are not all that shy of technology either.

In addition, in a digital world where people live on their smartphones, individuals expect seamless services and experiences how, when, and where they want them. GlobalData’s survey also showcases that no matter whether an investor is already retired, in full-time employment, or self-employed, a multi-channel communication experience is in demand. Therefore, pension providers should not ignore the need for personalisation from a communication perspective. Clients want to be able to access the support they need when and wherever they need it.

Positively, there are examples of both the old guard and new digital players developing retirement services. Charles Schwab offers a compelling hybrid multi-generational retirement product, UK digital pension provider Pension Bee has more than doubled its assets under management in the past year, and robo-adviser Nutmeg offers both pension and will services. So evidently, players are beginning to take note, but more need to follow suit in order to remain competitive.

Providers must remember though that advising clients in the retirement age is just as important as ensuring next-generation clients still hold onto the wealth being passed down or inherited. Having a full-circle service is key: one that keeps the next generation satisfied, as well as the current wealth holders.

As the rest of the wealth management industry digitalises to attract the next generation of investors and broaden access to more customers, the retirement space must adapt too. With more and more examples of players adapting to this change, those who do not join will suffer consequences. The need for seamless and personalised services is growing, and meeting this need is key for longevity. This, too, goes for players’ pension services. Wealth managers who are able to introduce engaging digital retirement services, with one that is cross-generationally focused, will prevail.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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