Client-centric Models in Wealth Management - Asia-Pacific

Table of Contents

• CHAPTER 1 INTRODUCTION
  • Who is the target reader?
  • How to use this report
  • Report Methodology
• CHAPTER 2 WHY IS CLIENT-CENTRICITY IMPORTANT?
  • In order to be successful going forward wealth managemers will need to be client-centric
    • Changing socio-economic factors mean the wealth management business in Asia-Pacific is seeing new segments with differentiated needs
      • In developed markets the 2ndgeneration of wealthy are beginning to emerge
      • Affluent individuals in emerging markets are different from those in developed markets
      • Expatriate groups are rising in number
      • Remittance services
      • Offshore investment
      • Other expatriate needs
    • In order to attract these new wealthy segments wealth managers will need to differentiate through service and understanding
      • It is actual service and not the promise of product and service features that differentiate a wealth manager from its competitors
      • As part of its marketing any private bank or wealth manager will detail exactly what it is that differentiates them from their competitors. Each type of competitor will highlight what they believe are the attractive aspects of their products and services for clients and potential clients.
      • The large global players will highlight the merits of their global presence or their long history or both (it should be noted that these examples are taken from different private banks):
      • As well as highlighting the tailored relationship that will be enjoyed by clients:
      • Wealthy individuals need to feel their service providers understand their situation
    • When the market is not so favorable, those wealth managers that are client-centric are more likely to achieve retention
      • Poor investment reporting is a major bone of contention
      • Poor communication and a lack of transparency are key frustrations
      • Lack of individual treatment and responsive service
• CHAPTER 3 CLIENT-CENTRIC BUSINESS MODELS
  • There are a three factors that wealth managers should consider when seeking to be client-centric
    • Client-centricity begins with segmentation
      • How can you service a client if you don't know what they need?
      • What are the major 'need' factors to consider?
    • The family office is the definition of client-centric
      • Ultimately a client manager must be perceived to be working for the client
      • Satisfaction comes with added value, which in turn comes through client-centricity
    • Empowering staff can also be a means to better client service
      • Incentivizing staff based on product quotas does not benefit the client
      • Ownership is more likely to instill an ethic of client service
• CHAPTER 4 APPENDIX
  • Supplementary data
  • Definitions
    • AAGR
    • CAGR
    • Gini index
    • Liquid assets
    • Liquid asset bands
  • Research methodology
  • The Global Wealth Model
    • The UK sub model
    • Asia-Pacific sub model
    • Forecasting methodology
    • Datamonitor's wealth numbers compared with others' numbers
  • Bespoke Wealth Market Sizing
  • Further reading
    • Datamonitor Asia-Pacific Wealth Reports
    • Datamonitor Asia-Pacific Insight Reports
    • Datamonitor Global Wealth Service: Competitor Tracking
  • Datamonitor Financial Services Consulting
  • Asia-Pacific contacts
  • List of Tables
    • Table 1: Affluent individuals with more than USD1m in investible assets USD and the value of their liquid assets
    • Table 2: Wealth markets that have been modeled using the Global Wealth Model
  • List of Figures
    • Figure 1: Methodology diagram and report structure
    • Figure 2: As the 1st generation ages and passes away, intergenerational transfer increases in occurrence
    • Figure 3: Japanese individuals own by far the largest share of affluent wealth in the Asia-Pacific region
    • Figure 4: Country of origin of survey respondents
    • Figure 5: Money transmission is clearly an important service offering for expatriates around the world
    • Figure 6: Investment advisory services offered by an offshore bank are considered important by expatriates
    • Figure 7: Understanding of income tax position is a large concern for expatriates
    • Figure 8: The tax or legal implications of buying property abroad are of concern to expatriates
    • Figure 9: The forces behind financial complexity for HNW individuals
    • Figure 10: The HNW population can be segmented across a range of different dimensions
    • Figure 11: Essentially client-retention can be improved through client-centricity
    • Figure 12: There are several different ways in which wealth managers are choosing to manage their clients, but increasingly they are turning to the team-based relationship model