Wealthy people in Asia Pacific want greater personalisation in the products and services they are offered – and are willing to pay more for it.
This is according to the highlights of Refinitiv’s 2022 Wealth Management Report, in which nearly half (47%) of these clients said they will pay more for personalised investing. That compares with 40% for their global peers.
When measured by age group, 64% of millennials and 51% in the 35-54 age bracket are willing to pay more for personalisation.
“The rise of next-best-action and direct-indexing tools point to investor yearning for personalised service and proactive engagement from the financial advisor,” said William Trout, director of wealth management at Javelin Strategy & Research.
Delivering on demand
The Refinitiv report also highlights the role of the advisor as a catalyst for decision-making and underscores the contribution of digital technology in shattering trade-offs between customisation and scale.
In particular, according to the study, entitled “Getting Personal: How wealth firms can attract and retain the modern investor”, wealth managers need to ensure existing clients stay engaged and that prospective clients feel their money and their future will be cared for over the long-term.
For example, 43% of Asia Pacific investors stated “advisor recommendations” as the most reliable source of information, followed by investment newsletters (40%). And 39% of Asia Pacific investors said technology will see financial advisors become more important going forward.
The research also shows that to build client-centric solutions which attract and retain investors, wealth management firms need to understand what sets their investors apart and what similarities they share.
“As investor needs in Asia Pacific continue to change and reflect new ways of investing and doing business, so too must those of financial advisors to retain clients and grow their business,” added Sabrina Bailey, global head of wealth, data & analytics, LSEG.
Appetite for alternatives
Meanwhile, the report’s findings also highlight a growing awareness and engagement of alternative assets among wealthy people in Asia Pacific.
For example:
- 52% of investors in the region are familiar with sustainable investments
- 32% of millennials globally believe tokenised assets will have the biggest positive impact on financial markets, followed by 23% for non-fungible tokens
- 36% of Asia Pacific investors believe that commission-free trading and ESG investment vehicles will have the biggest impact on financial markets, followed by 33% for cryptocurrencies
