Asia-Pacific HNWIs have high expectations for digital services
Asia-Pacific's high net worth individual (HNWIs), who are among the wealthiest in the world, have been also one of the most demanding when it comes to digital services capabilities offered by wealth management firms, according to Capgemini.
The "Asia-Pacific Wealth Report 2016" found that not only did Asia-Pacific HNWIs, excluding Japan, appreciate the very best of digital technology, but they were also almost twice as likely to leave a firm whose digital services were lacking.
Additionally, the region had the highest number of HNWIs who generated the most wealth, the traditional wealth management firms would face a few challenges to win their trust.
First of all, local HNWIs tended to show a strong preference for keeping their wealth in physical cash or in retail bank accounts, and they displayed some resistance toward seeking assistance from wealth managers.
Secondly, Asia-Pacific HNWIs displayed different investment philosophies as far as the use of credit, and preferred asset classes were concerned. Also, they tended to develop their own philosophy when it came to how much they intended to invest overseas.
In addition, the majority of Asia-Pacific's clients preferred to couple investment management with financial planning while, at the same time, they were often unimpressed by the levels of service they had received from wealth managers.
"These HNWIs also have high expectations for digital services, making them more likely than those anywhere else in the world to sever wealth management relationships that do not feature robust digital capabilities," the report read.
"Firms are not necessarily up to the challenge of meeting all these demands.
"Even though firms may recognise the criticality of undergoing digital transformation, they too often struggle to find the resources to fully fund such projects."
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