Australian financial services providers must abandon their "short-term performance culture" if they are to take advantage of opportunities in Asia, Connect Financial Services Brokers CEO, Paul Tynan believes.
With the Trans-Pacific Partnership Agreement inching closer to fruition, Australian funds managers will gain access to Asia's burgeoning middle-class, which is expected to hit 1.75 billion by 2020.
However, Tynan warned that the industry would have to offer clients more than it currently does if businesses are to succeed in overseas markets.
"The fund management industry in Australia has been driven by compulsory superannuation and regulatory change over the past 25 years," he said.
"Today distribution is controlled by product design, platforms, research, industry funds and vertical integration of advice.
"To win in the Asia market the Australian fund management industry will need more than product design, returns and the lowest cost if they are to succeed.
"Doing business in Asia will take time and a long-term commitment, but if the Australian funds management industry takes their short-term performance culture to Asia they will fail.
"To develop these markets business large and small need to start their engagement activities now and proactively support government initiatives, embrace expats, knowledge/networks and most importantly, apply the ‘old world skills' of relationship management."
Tynan said that Australians needed to act now to engage and develop with the Asian century, but also stressed that "opportunities cannot be driven by governments alone".
"Businesses must seize this moment in history and capitalise on their entrepreneurial spirit to develop these opportunities," he said.
