IT provider SunGard has identified ten key trends that are heavily influencing Asia’s wealth management and private banking industry.
Ten influential trends
- 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.