Wealth Management Entry Strategies in Emerging Markets

Abstract

Overview

Introduction

As the Asian, CEE and Middle Eastern markets will continue to present valuable opportunities over the coming years, this report examines the various geographical, customer and competitor considerations relating to emerging market entry to provide a concise strategic analysis for wealth managers looking to exploit this potential

Scope

• Provides country prototypes similar to markets in Asia, CEE and the Middle East
• Assesses the geographical, customer and competitor structure and characteristics to provide business model considerations
• Applies the business model considerations to highlight the most appropriate entry strategies for certain market prototypes

Report Highlights

While in the case of Malaysia in particular, the regulatory environment currently limits entry to this market, with no new licenses to be granted until 2007 and a requirement to operate as locally controlled subsidiaries, markets such as Prototype 1 should be approached with a view towards partnership/joint venture.

As entry strategies for such a market will naturally be constrained by the low level of regulatory openness, the most sensible option for wealth managers in markets such as India is partnership with a local player. This provides the required level of local branding and access to the sizeable client base held by the retail players.

In a market such as Prototype 4 (countries like UAE), wealth managers could consider a stand-alone start-up. However, this should be considered if the product if a provider has either a key specialist skill, or is strong across the board. Those players with specialist skills can also utilize this expertise to become a third-party manufacturer.

Reasons to Purchase

• Determine the basic business model and the most befitting entry strategy for certain markets based on Datamonitors prototypes
• Feed this assessment into a more in-depth analysis of key markets in preparation for entry
• Use the key factors and prototype analysis to create an assessment of additional markets