Even though both high net worth individuals and wealth is rapidly on the rise in Asia-Pacific, a Capgemini report shows that client satisfaction levels among wealth managers are in decline.
The report stated: “Even though Asia-Pacific (exc. Japan) HNWI’s earned robust investment returns via their wealth managers, expectations for more value from firms resulted in tepid satisfaction levels.
“A sub-optimal level of skilled staff to keep up with an ever-increasing pool of demanding clients, coupled with high attrition at some wealth management firms, also likely dragged satisfaction levels down.”
The decline in client satisfaction arrives at a time where there is increasing demand placed on the wealth management sector. The report showed various issues concerning client satisfaction which includes fee structure, personalisation needs and time spent with their wealth manager.
Asia Pacific continues to fuel the growth of global HNW population and wealth
The Capgemini report found that Asia Pacific wealth accounts for 41.4% of new global HNW wealth.
In 2017, the population of HNWI’s rose 12.1% to a total of 6.2m. At the same time, wealth increased 14.8%.
Furthermore emerging Asia-Pacific countries surpassed mature Asian ones when contributing to the region’s growth of HNW population and wealth. The report highlighted emerging Asia-Pacific markets made up 38.4% of the region’s total HNWI population and 52.9% of growth in 2017.
However, Japan was the largest market, accounting for 40.8% of overall HNWI population growth, the highest in the region and adding 271,000 new HNWI’s.
Ultra High Net Worth Individuals (UHNWI) – those worth more than $30m – were the fastest growing wealth segment in Asia-Pacific. The UHNWI population growth rose 17% in the region, and their wealth 19.5%.