The business of wealth management is facing significant challenges today. The pandemic followed by a war and geopolitical tensions and increasing interest rates have had a severe impact on debt and equity performance. More importantly, customer behavior has undergone a sea-change with the advent of digital banking technologies, powered by fintechs and neobanks. Younger customers are far more digitally empowered and expect personalized and on-demand service as well as greater control over their investment decisions. Further, the entry of non-bank WealthTech and fintech players has increased the level of disintermediation and client self-service.
However, in the APAC region, the high-net-worth market is expanding rapidly and is expected to reach US 21 million by 2024.1 This market holds significant opportunities for wealth managers. Banks must now focus on adapting to these changing customer expectations and market conditions to fully capitalize on the prospects of this market.
Wealth Management strategies must undergo a significant transformation to be effective in the current market landscape. Robust wealth management infrastructure that can support automation, algorithm-based advisory services, robo-advisors and omnichannel access to services is now the need of the hour. Know more about the future of wealth management.
