The global economic crisis of 2008 significantly decreased client trust in wealth management firms. This resulted in a shift towards safer products such as fixed income securities and other personalized services in the APAC region. However, the mass affluent offer high growth opportunities for the wealth management industry and good growth can be expected in the sector in the future.
The net millionaire wealth in Asia (excluding Japan) is expected to reach over USD 17.7 trillion by the end of 2018, which is double of that in 2013. The wealth management industry in APAC is poised for growth at an estimated CAGR of XX.X% over the forecast period, from 2016 to 2021. The projected market value of the wealth management sector by 2021 is USD XXXX.XX million.
Due to the start-up culture picking pace, China and India represent the largest opportunity and have the highest proportion of UHNW (Ultra High Net Worth). These people need wealth managers to help them outline the best companies to invest in at best price. This start-up culture is the major driver for the sector. Moreover, high competition in the sector is another major driver. Private banks, independent broker-dealers (IBD’s), wirehouses, independent advisors, etc., are putting their best efforts in customer acquisition strategies, as all of them compete to capture clients in the High Net Worth (HNW) and Ultra High Net Worth (UHNW) segments.
Restraints and Challenges
Competition is one of the biggest challenges in the APAC region. The companies and banks in the region have the best customer acquisition strategies, globally, and a new company might find it tough to settle in the market. Trust is another major issue as the recent economic crises significantly reduced client trust in wealth management. Firms are opting for new operational models to compete effectively in the changing scenario and recover their losses instead of using traditional methods of wealth management. In the APAC region, companies need to cut their profits as the cost is a major factor. Moreover, APAC companies face competition from other companies, around the globe, which are more trusted than those in the APAC countries.
A large chunk of the millionaire population was born between 1945-1965 (baby boomer population), which is included in the mass affluent segment. This population is expected to require financial advice for retirement planning in the coming decade, having accumulated significant wealth, and this will present further opportunities for wealth management. The entrepreneurial nature of the people in countries like India and China will present a lot of opportunities for wealth managers, with many people seeking advice to invest in start-ups.
- Wealth managers in India have now started focusing on Tier II and Tier III cities.
- In China, despite all the ups and downs in 2015, data from the securities association for the year showed roughly USD 90 billion in industry operating income, a 121% increase year-on-year.
- The recent demonetization in India has brought a lot of change in the market. Some people are seeking wealth managers to deal with the issue, while some have delayed their plans to seek advice to cut the costs.
About the Market
- PESTLE Analysis (Overview): Macro market factors pertinent to this region.
- Market Definition: Main, as well as, associated/ancillary components constituting the market.
- Key Findings of the Study: Top headlines about market trends & numbers.
- Drivers: What are the key factors driving growth in the market?
- Restraints: Most relevant threats and restraints which hinder the growth of the market?
- Opportunities: Sectors of high return or quick turn around on investment?
- Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters.
- Market Share Analysis: Top players in the market (by value and volume).
- Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.
1.1 Definition of the Market
1.2 Research Approach and Methodology
1.2.2 Research Design
1.2.3 Study Phases
1.3 Scope of the Report
1.4 Regional Analysis
1.4.1 PESTLE Analysis
1.4.2 Analysis of Ease of Doing Business
2. Market Dynamics
2.4 Market Demand Analysis
2.4.1 Identification of Target Subsegments (Demand Estimation)
2.4.2 Spending Patterns
2.5 Porter's Five Forces Analysis
2.5.1 Bargaining Power of Suppliers
2.5.2 Bargaining Power of Buyers
2.5.3 Threat of New Entrants
2.5.4 Threat of Substitute Products
2.5.5 Degree of Competition
2.6 Marketing and Product Placement Overview
2.6.1 Distribution Overview
2.6.2 Strategies for Distribution
3. 3. Market Segmentation
3.1 By Client Type
3.1.1 Private Wealth management
18.104.22.168 Market Size (USD Millions)
22.214.171.124 Distribution share by products
3.1.2 Institutional wealth management
126.96.36.199 Market Size (USD Millions)
188.8.131.52 Distribution share by products
3.2 By Geography
184.108.40.206 Market Size (USD Millions)
220.127.116.11 Distribution share by products
18.104.22.168 Market Size (USD Millions)
22.214.171.124 Distribution share by products
126.96.36.199 Market Size (USD Millions)
188.8.131.52 Distribution share by products
184.108.40.206 Market Size (USD Millions)
220.127.116.11 Distribution share by products
4. Competition Analysis
4.1 Local Supply Ecosystem
4.2 Market Share
4.3 Strategies Adopted, Recent Events
5. Pricing Strategy
6. Government Policies
6.1 Criteria & Conditions
6.2 Ministries Involved