IT provider SunGard has identified ten key
trends that are heavily influencing Asia’s wealth management and
private banking industry.
Ten influential trends
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- Competition is growing, as a result of
domestic retail players branching out into wealth management, and
international counterparts and new competitors such as family
offices
- With the increase of Asian high net worth
individuals, a demand for more sophisticated investment product has
been realised
- There are challenges in building client
trust, due to clients’ tendency to invest part of their wealth with
any one adviser, forcing Asian banks to look towards developing
advisory-based services
- Relationship managers will offer a
more advisory-based service to improve client services making them
more competitive. The company said that this will require a
single client view in order for this to be effective
- Staff productivity is under
greater scrutiny because of marginal pressures that are causing
banks to reduce cost to income ratios
- Many banks are developing in
front-office tools to encourage advisers to build stronger more
sustainable relationships with clients
- Banks are looking at ways to gain
greater control of client relationships by improving management of
customer information
- Local banks need strategies to
attract and maintain wealth onshore and regional retail players
should look at private banking strategies to gain fresh
opportunities
- With services and information
become increasingly mobile, relationship managers are being advised
to make themselves more accessible to clients by offering real-time
information about updates on their accounts
- Asia’s private banks will be able to better
handle counterparty risk as the focus on governance, risk and
compliance around sales, product suitability, appropriate
disclosures and adviser competency standards increases.
