Is Asia As LucrativeAs Everyone Says?

Dominic GambleCEO, findaWEALTHMANAGER.com

BrightTALK’S GLOBAL OUTLOOK SUMMIT9 December 2015

SYNOPSIS

Is Asia a lucrative market for the wealth management industry?

The statistics look fabulous.

But the reality looks sketchy.In this webinar we cover the pros and cons, opportunities and threats of doing good business in Asia. We explain the current landscape, explore how clients and regulations are changing and examine the opportunities presented by the digital revolution, both adoption by consumers and fintech solutions for the industry.

This is essential listening for businesses watching Asia with interest, or starting to do business there.

PUT A FACE TO THE VOICEDominic Gamble

CEO, Co-founder

findaWEALTHMANAGER.comBACKGROUND

• Career private banker• UK, Middle East and Asian

Family Offices• Started FWM in UK in 2012• Moved to Singapore in

2014• Launched in Singapore in

2015

BUSINESS in ASIA

• Built the business from scratch in 2014

• Today partnered with over 20 financial institutions

• Received government grant, hired local employees

• Networked in start-up scene locally

Some media that has featured Dominic:

ASIA’S IN FOCUS – BUT WHY?

1. GDP Growth

2. High Net Worths

And for wealth management:

3. Unmanaged wealth

THE STATISTICS LOOK FABULOUS

Source: Channel News Asia

But Behind the Noise…

CONTRARY TO WESTERN PERCEPTION

Asia's streets are most definitely NOT lined with gold

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ASIAN POPULATION

4 billion people – low wealth per capita

Age of wealth – old

Ability to capture?

ASIAN MARKET CHALLENGES • Wealthy client mindset is mis-trusting

• Next generation appetite for wealth management

• Regulatory cost pressure is high

• Lack of wealth management talent

• Business subdued - economic and political reasons

• Swiss style re-framing offshore tax haven status

• Investment models and making money

Now the Good News…

TECHNOLOGY IS THE FUTURE

Using digital channels to attract and retain business in Asia is a winning strategy for the foreseeable future….

DIGITAL ADOPTION IN ASIA  MasterCard Digital Evolution Index:

2.9 billion global internet users. And counting. • Singapore and Hong Kong were 1 and 3 respectively

• China, Malaysia and Thailand ranked as the top three fastest-moving digital economies

• Six of the top 10 in this category are Asian countries

INTERNET PENETRATIONSouth East Asia has internet penetration of 36% compared to 88% in North America and 81% in Europe.  

Internet usage +12% pa.

Source: We Are Social

HOW DIGITAL IS CHANGING BEHAVIOURS• 76% of Elderly people (55+) use internet for research, and 62%

use smartphones• Our Average age of our users is 51 years old - 30% over 65

• 88% go to the internet first when they need info

• Only 1% of Singaporeans research only offline vs 74% research do a mix of both online and offline

DIGITAL VIEW

The evolution and growth of digital and mobile is expected to continue, if not at the same pace, then most definitely at warp.

HOW OFTEN DO YOU USE YOUR……Smartphones dominate usage across devices in Asia

MAIN PLAYERS ARE FOCUSING ON ASIA

New investment cycle in the region from:Credit SuisseDBSUBS

THE WEALTH INDUSTRY IS TRANSFORMING

When asked who he sees as DBS' main competitors, CEO Piyush Gupta replies…

“Google and Alibaba”

DEMOGRAPHIC SHIFTS• Increase from low income level

• Middle class growing rapidly

• By 2030 Asia will represent 66% of the world's middle class population (Source OECD)

• Younger generations doing it their own way

• Old generations embracing technology

THE WEALTH LIFECYCLE IS IN ASIA'S FAVOUR

• Populations

• Un-managed wealth

KEY TAKEAWAY:Don't underestimate the trickle-up effect of digital

savviness from low-wealth to high-wealth social groups

SERVICES ARE AS RELEVANT AS EVER

Clients needs are more complex - International- Instant - Dynamic

• Succession planning • Cross border tax planning• Investment• Debt • Professional financial advice

Wealth management is aspirational to the Asian client base..

OFFSHORE BANKING MODEL IS ALIVE AND KICKING  Independent Wealth centres

TAKEAWAYS – THERE ARE CHALLENGES

Current business environment is tough:

Economic conditionsRegulatory environmentCultural nuances

 

TAKEAWAYS – BUT THERE ARE OPPORTUNITIES

We think Asia’s future for wealth management is positive underpinned by:

Demographics&Wealth

 

HOW TO REACH USCONTACT:

Dominic GambleCEO & Co-founderdominic@findawealthmanager.com