The wealth management industry is undergoing significant changes due to shifting demographics. Their client base is living longer, with increasing demand for wealth advisory services. More importantly, their heirs are the rising generation of Gen X and Y affluent investors. These individuals have expectations and preferences which are markedly different from other customer segments, shaped by their digital and fintech experiences, and having lived through both the financial crisis and the pandemic during their formative years.
The Asia Pacific region is the world’s second-largest wealth hub, according to the latest Knight Frank wealth report. It is expected that the billionaire population in the region will rise more quickly than the global average (33.7%) at 36.7% over the next five years. By 2026, more than a third of the world’s billionaires will be from the region.
To effectively meet the aspirations of young affluent investors, financial institutions are rethinking their services and products. Their tech savvy clientele isn’t just accustomed to using digital apps, but also expect highly personalized advisory solutions.
To this end, wealth advisors are focused on gathering an in-depth understanding of their clients with the intention of shifting their wealth advisory models from a product-centric approach to one that is customer-centric, with the help of AI, advanced analytics, predictive modelling, customized insights and robo-advisors.