One-size-fits-all wealth management does not "fit" in Asia-Pacific
HONG KONG, SINGAPORE, Sept. 25, 2013 /CNW/ - Almost half (45.4 percent) of the world's high net worth wealth growth
has come from Asia-Pacific over the past five years (2007-2012), a
trend that is expected to continue, according to the Asia-Pacific
Wealth Report 2013 (APWR), released today by Capgemini and RBC Wealth
Management. This distinction provides wealth management firms with
opportunities for growth, but requires tailored and scalable offerings
to meet the diverse needs of high net worth individuals (HNWIs) across
the region.
"With consistent wealth growth across Asia-Pacific markets, the region
is poised to have the largest high net worth population by as early as
2014," said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance. "This growth provides both opportunities and challenges for firms, who
will need to cater their offerings to meet the diverse needs of clients
in the region to remain competitive in a rapidly-evolving and
increasingly complex industry."
Key differences between Asia-Pacific HNWIs and HNWIs in other regions
Results from the inaugural Global HNW Insights Survey1 incorporated into this year's APWR revealed that while Asia-Pacific
HNWIs share some traits with HNWIs in the rest of the world2, they also hold a number of unique characteristics pertaining to the
management of their wealth.
The unique traits of Asia-Pacific (excluding Japan)3 HNWIs include:
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Higher trust and confidence in firms and wealth managers. Over three-quarters have high levels of trust in wealth management
firms (78.8 percent) and wealth managers (77.9 percent) compared to
two-thirds (66.8 percent and 65.9 percent) of HNWIs in the rest of the
world. Japanese HNWIs, by contrast, had low levels of trust, with only
about 30 percent having confidence in various segments of the industry.
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More complex wealth management needs. They perceive their wealth management needs to be complex, encompassing
business, family or philanthropy, with 41.1 percent holding this view,
compared to 21.2 percent in the rest of the world. With regards to
advice on family wealth, 42.3 percent of Asia-Pacific HNWIs have this
need while 23.3 percent require personal wealth advice.
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Preference to work with multiple experts at one firm. They prefer to work with multiple experts (40.1 percent) at one firm,
in contrast with those in other regions who prefer one point of contact
(40.4 percent versus 21.7 percent who prefer multiple experts).
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Preference for digital versus direct contact. Nearly 40 (38.2) percent rated digital as more important than direct
wealth manager contact compared to 21.5 percent of HNWIs in the rest of
the world.
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Willingness to pay for customized services. Asia-Pacific HNWIs say they are willing to pay more for services that go
beyond standard wealth offerings (42.3 percent compared to 25.5 percent
in the rest of the world).
Preferences and behaviors differ by country
While there were different perspectives and behaviors expressed by
Asia-Pacific HNWIs compared to those in the rest of the world, the
region cannot be viewed as uniform, with varying views held by HNWIs
across individual Asian markets as well. These differences are most
clear when comparing HNWIs in Japan with those in China and India.
While HNWIs in Japan expressed no strong preferences in terms of their
wealth management servicing needs, HNWIs in China and India expressed
clear opinions, with both countries having the highest proportion of
HNWIs who view their needs as complex and desire input from a number of
experts.
"Firms that try to develop a 'one-size-fits-all' servicing model to
address the general needs of Asia-Pacific HNWIs will fall short," said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini
Global Financial Services. "The firms with the ability to combine deep local HNWI knowledge with a
tailored and scalable value proposition, upgraded business models and
seamless client experiences will be best positioned to capture growth."
What do wealth management firms need to be successful?
To best position themselves in the Asia-Pacific HNWI market, the report
highlights several specific areas for firms to focus on ranging from
ensuring an understanding of individual country HNWI preferences,
investing in digital communications, and building capabilities in
specific wealth management services to meet the needs of business
owners such as estate and succession planning.
The Asia-Pacific Wealth Report 2013
Expanding on the findings of the World Wealth Report, the Asia-Pacific
Wealth Report from Capgemini and RBC Wealth Management provides
population and wealth data for ten core markets in Asia-Pacific.
Spanning Australia, China, Hong Kong, India, Indonesia, Thailand,
Japan, Singapore, South Korea and Taiwan, the report reviews economic
and market performance drivers, as well as High Net Worth Individual
(HNWI) investing behaviors in the Asia-Pacific region. This year's
report also includes a section that provides an in-depth focus on HNWI
perspectives and behavior based on a global survey of over 4,400 HNWIs,
including almost 1,400 respondents from Asia-Pacific. Through the
survey findings we explore HNWI confidence levels, asset allocation
decisions, as well as their wealth management advice and service
preferences. Download the report at www.asiapacificwealthreport.com.
About Capgemini
With more than 128,000 people in 44 countries, Capgemini is one of the
world's foremost providers of consulting, technology and outsourcing
services. The Group reported 2012 global revenues of EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers business and
technology solutions that fit their needs and drive the results they
want. A deeply multicultural organization, Capgemini has developed its
own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini
About Capgemini's Financial Services Global Business Unit
Capgemini's Global Financial Services Business Unit brings deep industry
experience, innovative service offerings and next generation global
delivery to serve the financial services industry. With a network of
24,000 professionals serving over 900 clients worldwide Capgemini
collaborates with leading banks, insurers and capital market companies
to deliver business and IT solutions and thought leadership which
create tangible value. More information is available at: www.capgemini.com/financialservices
About RBC Wealth Management
RBC Wealth Management is one of the world's top 10 largest wealth managers*. RBC Wealth
Management directly serves affluent, high-net-worth and ultra-high net
worth clients in Canada, the United States, Latin America, Europe, the
Middle East, Africa, and Asia with a full suite of banking, investment,
trust and other wealth management solutions. The business also provides
asset management products and services directly and through RBC and
third party distributors to institutional and individual clients,
through its RBC Global Asset Management business (which includes
BlueBay Asset Management). RBC Wealth Management has more than C$615
billion of assets under administration, more than C$373 billion of
assets under management and over 4,400 financial consultants, advisors,
private bankers, and trust officers. For more information, please visit
www.rbcwealthmanagement.com.
About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master
brand name RBC. We are Canada's largest bank as measured by assets and
market capitalization, and are among the largest banks in the world,
based on market capitalization. We are one of North America's leading
diversified financial services companies, and provide personal and
commercial banking, wealth management services, insurance, investor
services and wholesale banking on a global basis. We employ
approximately 80,000 full- and part-time employees who serve more than
15 million personal, business, public sector and institutional clients
through offices in Canada, the U.S. and 44 other countries. For more
information, please visit rbc.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2013. In the
United States, securities are offered through RBC Wealth Management, a
division of RBC Capital Markets, LLC, a wholly owned subsidiary of
Royal Bank of Canada. Member NYSE/FINRA/SIPC.
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1 Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW
Insights Survey 2013.
2 "Asia-Pacific" refers to those markets compared in the APWR section on
regional diversity: Australia, China, India, Japan, Hong Kong, and
Singapore. The term 'rest of the world' refers to the 15 countries
covered in the Global HNW Insights Survey 2013 except those in
Asia-Pacific: Belgium, Brazil, Canada, France, Germany, Italy, Mexico,
Netherlands, Russia, South Africa, Spain, Switzerland, UAE, UK, and US.
3 As Japanese HNWIs have markedly unique investing behaviors and
preferences and the country accounts for more than 50 percent of the
region's HNWI population, we frequently isolate and make reference to
Asia-Pacific excluding Japan when performing regional analysis.
However, complete findings on Japan as a country are covered
extensively in the Asia Pacific Wealth Report.
SOURCE Capgemini
