The authors of the study “Asia Banking Agenda 2017” stress that relationship managers have an important role to play in supporting investors, especially during periods of volatility. However, broader implementation of digital tools and communication channels would make their work more efficient. “We believe that the productivity of Asian wealth relationship managers could at least double from today’s norms,” they write.
Wealth management industry in Asia has not been keeping pace with the region’s fast growing wealth, the study found. The penetration of wealth management products is still lower than in the more developed Western markets, and Asian investors hold too much cash. Moreover, the invested wealth is often poorly managed, with much of it chasing speculative returns.
Asian investors have poor access to wealth management services, compared to their peers in the Western countries, the study found. The services that are available hold comparatively less appeal, in particular due to the business model based on high retrocession (trailer etc) fees. The effect of high fees is exacerbated in a low-return economic environment.
Asset managers should provide more low-cost products, the study suggests. They should also put more effort into developing home-grown, Asian offering more suitable to the needs of the region’s investors. “As Asian capital markets mature, we see a real opportunity for Asian asset managers… to become sizeable international players,” the report concludes.
