1. Benchmarking Asia Pacific's Wealth Markets
Report Details:
Published:August 2012
No. of Pages: 124
Price: Single User License – US$5250
Expanding their footprint in the Asia Pacific wealth market is one of the key priorities of most
international private banks. However, the region is composed of a series of highly diverse markets
with wildly different systems of regulation and levels of financial development. This report seeks to
quantify these differences, allowing wealth managers to gauge the opportunity in each market.
Features and benefits
•Compare Asia Pacific's wealth markets across a number of criteria from affluent market growth, to
average office rents and foreign entry limitations.
•Gain insight into the broader market attractiveness with indexes comparing political stability,
forecast inflation and currency stability.
•Learn how the competitive environment differs across the region with comparisons of public
ownership of banks and range of asset management services.
•Understand the staffing environment in Asia Pacific including tertiary enrolment levels,
recruitment costs and average private banker salaries.
Highlights
The 10 countries of Asia Pacific analyzed by this report are generally quite accommodating to
wealth managers, with most achieving a score of more than 50% on the Wealth Management
Opportunities Index.
The countries of Asia are, unsurprisingly, led by the region's financial center, Hong Kong. The
country has highly desirable markets, for equities and other securities, that are still highly regarded
as places to base wealth operations. It also retains considerable attraction even as a source of
clients despite its small population.
The low score given to China suggests that the best strategy for accessing the country's wealth
remains managing it from Hong Kong, particularly as many of the HNW individuals, as per a Hurun
Report and Bank of China survey, are eager to migrate, making an onshore wealth management
office on the mainland not as worthwhile as a branch in the SAR.
Your key questions answered
•What are the top markets for basing a wealth management operation in Asia Pacific?
•Which countries are best to service offshore due to unaccommodating market conditions?
•Which countries are being held back by poorly designed and executed regulations?
•What factors besides a growing wealth market make a country more desirable for wealth
managers?

2. •What are the typical salaries for private bankers and the recruitment costs associated with each
market?
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Major points covered in Table of Contents of this report include
Table of Contents
OVERVIEW
Catalyst
Summary
Methodology
EXECUTIVE SUMMARY
Wealth managers expanding in Asia need to direct their efforts to those markets offering the best
return
Asia Pacific has become a focus for wealth managers' expansion plans
Expansion in Asia will have to be driven by investments in organic growth and new branches
The Wealth Management Opportunities Index benchmarks strategic markets through a
cost/benefit analysis
The metrics have been weighted to prioritize key factors of the index
The largest wealth markets in Asia are not necessarily the best for wealth managers to expand in
Seven out of the 10 markets in Asia Pacific achieve a score of greater than 50
Number one: Hong Kong retains its top ranking as the most attractive market in Asia Pacific in
which to manage wealth
WEALTH MANAGEMENT OPPORTUNITIES INDEX OVERVIEW
Introduction
Asia Pacific has become a focus for wealth managers' expansion plans
Asia is now a key market for any wealth manager with global ambitions
Wealth managers have prioritized investment in Asia Pacific
Asian countries selected by Datamonitor are some of the fastest growing in the world
The Wealth Management Opportunities Index benchmarks strategic markets through a
cost/benefit analysis
The index combines sizing of a market's potential with an evaluation of its business challenges
The metrics have been weighted to prioritize key factors of the index
Hong Kong comes out as the top jurisdiction for wealth managers in Asia Pacific
Seven out of the 10 markets in Asia Pacific achieve a score of greater than 50
Number one: Hong Kong retains its top ranking as the most attractive market in Asia Pacific in
which to manage wealth
Number two: Taiwan's relatively sophisticated economy and an accommodative competitive scene
make it a strong target for expansion
Number three: Singapore has developed a market for private wealth management, only narrowly
missing out on second spot

3. Number four: South Korea was ranked fourth, but could become more attractive if attention is
given to regulations
Number five: Malaysia's steps to liberalize its banking sector have made it more attractive as a
center for wealth management
Number six: the Philippines has a good regulatory framework for private banks, if not the most
attractive market at the present time
Number seven: Thailand has a decent regulatory framework for private banking, if low market
stability
Number eight: Indonesia needs to address local bank profitability and regulations to move up the
rankings
Number nine: China fared well for a market that only recently embraced private banking, but would
benefit from more regulatory certainty
Number 10: there is much potential in the Indian market, but conditions are not yet ripe for
onshore wealth managers
WEALTH MANAGEMENT OPPORTUNITIES INDEX: MARKET ATTRACTIVENESS
Introduction
Overview
Market attractiveness combines metrics on the potential of the market and its suitability as a
platform
Market stability
The business of wealth management requires a stable platform from which to manage assets
Political instability index
Forecast inflation
Currency stability
Frequency of banking crises
Tier 1 capital ratio
Potential customer base
Attractive markets for wealth managers need growing numbers of affluent investors who are able
to see value in advice
Number of affluent individuals
Growth in number of affluent individuals
Proportion of mutual funds, bonds and equities in overall retail savings and investments portfolio
Stock market capitalization to GDP
Willingness to use financial advice
Urban population percentage
Wealth management profitability
The financial sector in Asia Pacific has a wide range of margin on its activities
Bank operating costs to assets
Bank provisions to non-performing loans
Bank return on assets
WEALTH MANAGEMENT OPPORTUNITIES INDEX: MARKET ENTRY BUSINESS
CONDITIONS

4. Introduction
Overview
Ease of entry has made Hong Kong and Singapore accessible but highly competitive
Taiwan scores strongly due to its low barriers to entry and good regulation
Ease of entry
Singapore and Hong Kong have ensured that their markets are open to foreigners and startups
Foreign entry limitations
Corruption perception index
Paying taxes
Starting a business
Average office rent
Regulation
An accommodative regulatory scene is not a given in all Asia Pacific markets
Domestic financial sector liberalization
Central bank transparency
Distinction between HNW and retail markets
Recruitment
High recruitment costs act as a barrier to market entry
Tertiary education enrollment
Private banking compensation
Loyalty and motivators
Competitive landscape
Stiff competition can be expected from local and international players in many markets
Public ownership of banks
Commercial bank branches per 100,000 adults
Asset Management services
Customer targeting
APPENDIX
Supplementary data
Definitions
Affluent
High net worth (HNW)
Liquid assets
Mass affluent
Measures of growth
Onshore
Methodology
Wealth Management Opportunities Index: data sources
Private Banking Remuneration Data
Wealth Management Opportunities Index: rescaling and inverting the measures
Global Wealth Model methodology
Global Wealth Managers Survey 2011

5. Bibliography
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of Tables
Table: Selected organic growth developments in Asia Pacific, 2011–12
Table: Weighted market attractiveness scores, 2012
Table: Weighted market entry and doing business scores, 2012
Table: Unweighted market attractiveness scores, 2012
Table: Unweighted market entry and doing business scores, 2012
Table: Private Banking Remuneration data sources
List of Figures
Figure: The Datamonitor Wealth Management Opportunities Index
Figure: The number of affluent individuals in Asia Pacific will reach 118 million by 2015
Figure: Organic growth was focused in Asia Pacific, while Western Europe led the way in M&A
activity
Figure: Datamonitor has selected the leading Asian economies, excluding Japan
Figure: The Datamonitor Wealth Management Opportunities Index
Figure: Metrics that go to the heart of the wealth market are weighted more heavily in the index
Figure: Weightings for the market attractiveness metrics prioritize stable and profitable countries
with consumers who are open to wealth advice
Figure: Weightings for the market entry and business conditions metrics
Figure: Asia Pacific Wealth Management Opportunities Index rankings, by category
Figure: Hong Kong's strengths lie in many of the index's key metrics of stability, barriers to entry,
and market potential
Figure: Taiwan scores highly on liberalization and the openness of its market
Figure: The Singaporean market is highly attractive, in part due to low barriers to entry and
stability
Figure: South Korea presents the least recruitment problems for private banks looking to hire
Figure: Malaysia's competitive scene and profitability make it a strong candidate for expansion
Figure: A weak competitive landscape and a clear distinction between retail and HNW markets are
the Philippines' main strengths
Figure: Thailand's underdeveloped competitive landscape is a key benefit for new entrants
Figure: Indonesia's wealth market has potential and few competitive obstacles
Figure: China's profitability and growth result in a favorable score for market attractiveness
Figure: India has a great deal of wealth potential, but it also has high barriers to entry and low
macroeconomic stability
Figure: Hong Kong manages to combine stability with growth opportunity
Figure: India has the most room for improving macroeconomic stability
Figure: Market stability weightings
Figure: Singapore and Taiwan tie for the most stable political system for wealth managers

6. Figure: Most countries in Asia Pacific will see low inflation rates over the next five years
Figure: Currency instability lowers the attractiveness of India as a booking center
Figure: Singapore and Hong Kong have pursued policy frameworks that have prevented any
recent bank blowouts
Figure: All Asia Pacific countries have Tier 1 capital ratios that are already in line with Basel III
Figure: While one of the most developed markets in the region, Hong Kong also holds the greatest
potential
Figure: Potential wealth management customer base weightings
Figure: Most affluent individuals are in China due to its population size and fast economic growth
Figure: China and India will see a boom in the number of affluent individuals between 2011 and
2015
Figure: Thailand's retail investors use the highest proportion of sophisticated financial products in
the region
Figure: China has the lowest stock market capitalization to GDP due to its reliance on industry
Figure: Almost half of Singaporeans are willing to use the services of a financial advisor
Figure: Hong Kong and Singapore are over 90% urban, unsurprising given their size
Figure: China has the highest profitability score due to lower commercial rental costs
Figure: Wealth management market profitability weightings
Figure: Bank operating costs are lowest in China due to state ownership and patronage
Figure: Bank provisions to non-performing loans scores are highest in China and Taiwan
Figure: The bank return on assets score is highest in Indonesia
Figure: Barriers to entry depress the scores of a number of countries
Figure: Singapore has taken care to ensure it is open for business
Figure: Ease of entry into wealth management market weightings
Figure: Half of the countries indexed in Asia have made notable efforts to attract foreign entrants
to the financial sector
Figure: The Philippines and Indonesia are perceived as being the most corrupt countries in Asia
Pacific
Figure: Higher taxation and corruption make India and the Philippines the worst countries in which
to pay taxes
Figure: There are stark differences within the region in terms of the ease of starting a business
Figure: Office rents are very attractive in most of Asia Pacific
Figure: Singapore's attention to the needs of the finance industry has resulted in an ideal
regulatory environment for private wealth managers
Figure: Regulation weightings
Figure: Hong Kong, Singapore, and Malaysia have the highest financial sector liberalization
Figure: Asian central banks have generally maintained an opaqueness to their decision-making
Figure: The Philippines has the clearest distinction at the lowest level of AUM
Figure: South Korea has the most conducive market for hiring private banking staff
Figure: Wealth management staff recruitment weightings
Figure: South Korea has the highest level of tertiary enrollment and a skilled workforce
Figure: High base pay in Singapore is a key drawback for private banks operating from the city

7. state
Figure: Singapore's costly private bankers reduce its attractiveness as a wealth management
center
Figure: Staff in the Philippines are the most loyal in the region
Figure: The Philippines has the lowest competitive barriers to entry
Figure: Competitive landscape relative weightings
Figure: Many Asian countries have significant government control over their banking sectors
Figure: There is a low density of commercial bank branches per 100,000 adults across most of
Asia Pacific
Figure: Outside of Singapore and Hong Kong, the Asia Pacific wealth market lacks depth
Figure: Citibank, a major player in Singapore and Hong Kong, has made significant investments
into its mobile apps
Figure: Wealth managers in Asia Pacific lag behind more established markets in their customer
targeting
Figure: Yes Bank has a dedicated program for the affluent Indian woman, while Standard
Chartered has many tailored programs for expats and residents alike
Figure: Global Wealth Managers Survey 2011 geographic coverage
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