Asia Wealth 2020 - IBF Wealth 2020.pdf · Asia Wealth 2020 David P. Wilson Asia Wealth Management...

Asia Wealth 2020 David P. Wilson Asia Wealth Management Lead

May 16, 2017

2 Copyright © Capgemini 2016. All Rights Reserved

20170515_Asia Wealth 2020_vFINAL for Distribution NEW Asia-Pacific Wealth Report Launches Q4 2017!

Download Full Report at www.WorldWealthReport.com/APWR

Messages We Will Cover Today

Asia is an exceptionally exciting wealth management market

Firms face significant challenges to tap into growth and succeed in Asia

There is a significant opportunity for leaders to invest and differentiate

http://www.worldwealthreport.com/APWR




Asia-Pacific is now #1 for HNWI population and wealth

Source: Capgemini Financial Services Analysis, 2016

HNWI Wealth Evolution, 1996–2015 (by Region)

3.5 8.4 9.5 7.4 9.7 10.8 10.7 12.0 14.2 15.8 17.4

4.4

11.3 11.7 9.1

10.7 11.6 11.4

12.7 14.9

16.2 16.6

5.0

10.1 10.7

8.3

9.5 10.2 10.1

10.9

12.4 13.0

13.6

2.2

5.1 6.2

5.8

6.7 7.3 7.1

7.5

7.7 7.7

7.4

1.1

1.4 1.7

1.4

1.5 1.7 1.7

1.8

2.1

2.3 2.3

0.4

0.9 1.0

0.8

1.0 1.1 1.1

1.3

1.3

1.4 1.4

0

10

20

30

40

50

60

1996 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

HN

WI F

ina

ncia

l W

ealth

($ U

S T

n)

North America

Europe

Asia-Pacific

Latin America

Middle East

Africa

Global

16.6

37.2 40.8

32.8

39.1 42.7 42.0 46.2

52.6

56.4 58.7





Taiwan

Japan

Wealth growth has been strongest in Emerging Markets

Annual HNWI Population vs. HNWI Wealth Growth Across Key Asia-Pacific Markets, 2008–2015


= US$1Trillion

Sample bubble

RoW

Avera

ge

(7.4

%)

RoW Average (7.2%)

Emerging Asia

Mature Asia

Rest of Asia

Singapore

India

Indonesia

China

Hong Kong

Philippines

S Korea

Vietnam

Malaysia

Pakistan

Thailand

Australia

0%

5%

10%

15%

20%

25%

0% 5% 10% 15% 20% 25%

HNWI Population 2008 - 2015 CAGR

HN

WI W

ealth 2

008

–2015 C

AG

R

Sri Lanka

New Zealand





Asian HNWI wealth projected to be 5x 2006 levels by 2025


Asia-Pacific HNWI Wealth Projection (US$ Trillion), 2006–2025P

Mature Asia (Industrialized + Newly Industrialized

Asia)

2,330 6,704

21,974

5,773

10,052

18,724

325

638

1,396

0

10,000

20,000

30,000

40,000

50,000

2006 2015 2025P

HN

WI In

ve

sta

ble

Wea

lth

Asia-Pacific

Emerging Asia

Rest of Asia

Total

US$42.1T

Total

US$8.4T

Total

US$17.4T

5.0X





The region’s HNWIs allocate less than one-third of their

wealth to wealth mangers…

HNWI Wealth with Wealth Managers and Other Entities, Q1 2016

34.5% 30.6%

65.6% 69.3%

0%

25%

50%

75%

100%

RoW Asia-Pacific (excl. Japan)

Perc

enta

ge o

f A

ssets

Wealth Managers

Other Entities

Source: Capgemini Financial Services Analysis, 2016; Global HNW Insights Survey 2016, Capgemini





HNWI Wealth with Wealth Managers & Willingness to Consolidate Wealth, Q1 2016

… but are open to consolidating

Source: Capgemini Financial Services Analysis, 2016; Global HNW Insights Survey 2016, Capgemini

Wealth with Wealth Managers HNWI Willingness to Consolidate Wealth with Wealth Managers

33.7%

69.3%

69.3%

33.1%

33.3% 48.4%

53.2% 67.2%

Australia

34.1%

Malaysia

28.1%

Japan

23.6%

India

27.9%

China

30.9%

Indonesia

26.8%

Hong Kong

28.4%

Singapore

32.6%





Success is not a given, as firms face significant disruption

over the next decade

Future Asia Wealth Management Trends on Client, Operations, Regulatory, and Digital Areas

Source: Capgemini Financial Services Analysis, 2016; WWR Executive Interviews, 2016

CLIENT

OPERATIONS

REGULATORY

DIGITAL





Asia-Pacific wealth firms are struggling to invest

sufficiently in order to build differentiating capability

Asian Wealth Management Firms’ Future Investment Allocation (20 Units), H1 2016

Source: Capgemini Financial Services Analysis, 2016; WWR Executive Interviews, 2016

0

1

2

3

4

5

People and Culture

External Modernization

Keeping Up

Business Model

Proposition Development

Internal Modernization

Asian Wealth Firm – Target Allocation

Asian Wealth Firms – Current Allocation





There are three primary levers to drive more wealth

business from HNW clients

1 Investment Management Capability

Most important wealth management capability for Asia-Pacific (ex. Japan) HNWIs

91% state important (34% state most important)

2 Financial Planning Capability

Second-most important wealth management capability for Asia-Pacific (ex. Japan) HNWIs

91% state important (21% state most important)

3 Digital Maturity

Highly important wealth management capability for Asia-Pacific (ex. Japan) HNWIs

86% state firm digital maturity is key in decision whether to increase/decrease assets held

with wealth management firm over next two years





WATCH THIS SPACE: The Asia-Pacific Wealth

Report 2017 launches in Q4

https://www.worldwealthreport.com/apwr

Market sizing (HNWI population and wealth growth

trends)

Investment focus (asset allocation, offshore holdings,

performance, fees)

Digital focus (Hybrid Advice)

Contact [email protected] for further information.


https://www.worldwealthreport.com/apwr

mailto:[email protected]

Thank You! Questions?

www.asiapacificwealthreport.com




Appendix: Notes to Slides

Slide # Notes

4 Size of the bubble represents HNWI wealth in 2015

5 The total for all years are expressed in US$ trillion except for the 2006 and 2015 “Rest of Asia” data, which is in

US$ billions; Chart numbers may not add up due to rounding; Mature Asia includes Japan, Australia, New

Zealand, Singapore, Hong Kong, Taiwan, Malaysia, and South Korea; Emerging Asia Includes China, India,

Indonesia, and Thailand; Rest of Asia includes Kazakhstan, Myanmar, Pakistan, Philippines, Sri Lanka, and

Vietnam


Asia Wealth 2020 - IBF Wealth 2020.pdf · Asia Wealth 2020 David P. Wilson Asia Wealth Management...

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