APAC Gen Y presentation to Fund Forum sharing UHNW and HNW investor insight

© Scorpio Partnership 2013 |1
Scorpio Partnership’s Asia’s Millionaires: catering to the future customer
Hong Kong, April 2013
CREATING A STRATEGY AROUND APAC’S WEALTHY GENERATION Y
Integrating technology, relationships and finance
to cater for the future customer

Topics to cover
1. Who are Asia’s HNWs?
2. What do they want?
3. How do they want it?
4. Why do they want it?
5. When do they want it?
6. Who do they want it from – the FutureAdvisor?

The R&D edge of the world:
FutureWealth, FuturePriority & FutureAdvisor

Meet the APAC HNW digeratti

Generation Y? More like Generation Y-not now…
The debate
over whether
Gen-Y
consume
financial
services
differently is
vigorous. The
thinking is often
they are a sub-
set of a
“normal” client.
We disagree. In
fact, thinking
about Gen-Y in
isolation is a
mistake…

The APAC client is on the move – catch them if you can
Ambition:
Considering your money goal, how much do you need in US dollars and how long do you think it will take you
to achieve this sum?
The wealth
goals of the
Asia region are
similar to those
of the wealthy
round the
world. They
want to triple
their wealth
within a 10 year
time frame.
It is worth
noting this is
not biased
much by age…
Source: Scorpio Partnership

The APAC client is not irrational in their expectations
Confidence:
Do you think your wealth will increase over the next 12 months?
The spotlight
may be on Asia
as the engine
room for global
growth.
But, in Asia, the
wealthy are
looking at the
global situation
and
recalibrating
their
expectations.
The role of the
advisor is
key…

Their future plan for investments
Vehicles:
In which of the following asset classes would you like to have investments in within the next five years
Source: Scorpio Partnership, Sungard

Their future behaviours for investing
Wealth management in Asia in 5 years:
How much more do you expect to do the following in 5 years’ time?
In general,
APAC’s HNWs
expect the
internet will
become more
significant
influence. As
will financial
advice…

Their preferred future investment fund advice channels
Wealth management in Asia in 5 years:
Who will you turn to as your primary decision making support for wealth matters in 5 years’ time?

Understanding the behaviour patterns of
the APAC digeratti

The purpose of wealth managers to APAC’s wealth clients
Wealth management
clearly has a role for
wealthy people. In
APAC, the trend is
toward the wealth
management firm
being a centre of
information,
knowledge and
access AS WELL AS
basic market
execution
?
Access to specific markets investments and markets: 49%
Lack of knowledge: 35%
Lack of time: 25%
Preference to delegate: 22%
Disinterest in
investments: 8%
Other:
2%
APAC HNW clients are using their financial advisors for:

Getting to the heart of their wealth is through the digit(al)
91% 85% 85%
57% 42% 40% 23%
The most
established
micro-processing
gear – the laptop
and desktop
computers
remain the most
important for
Asian HNWs
when conducting
financial
transactions but
their bags are
brimming with
digital kit … .

The access to finance through apps are substantial
80%
83%
75% 79%
68%
72% 74%
77%
62%
73%
54% 52%
44%
51%
47%
44%
64%
48%
25%
84%
50%
36%
42%
38%
58%
20% 22%
12%
16%
2%
70%
50%
53%
38%
28% 28% 16%
23%
0%
20%
40%
60%
80%
100%
China Hong Kong Indonesia Philippines Singapore
% respondents
Social networking
News
Banking
M
usic
M
aps/ Navigation
G
am
es
W
eather
Video/ M
ovies
Shopping/ Retail
Travel
Investm
ents
Education/ Learning
Lifestyle/ H
obbies
Dining/ Restaurant
Health
Sports
Household
Portfolio
m
onitoring
I don’t use
any
apps
Usage of apps in Asia:
Which of the following do you use apps for to enable your activities online?
APAC HNWs uptake of apps for
wealth management is TWICE
that of America or Europe

The activity online increases not decreases with fortunes
China HNWs top
the charts for
use of digital for
banking and
investments. HK
and Philippines
are close 2nd
…

The wealth digeratti lead the way globally in terms of techno-talk
Channels of dialogue with the wealth advisor
Over the next few years do you expect to be using these communications more or less or the same when interacting with your financial provider

Their needs are also very clear and technology enables them/us
The purpose of online for wealth
With reference to your personal finances, when it comes to your devices, in five years how much do you expect to use them for the following:
The digital
gateway is part
of the future
wealth advice
model for
APAC’s HNWs.
Wealth
managers are
adapting, but
perhaps not
quick enough …

Can APAC wealth management
adapt to the technology?

In terms of hitting the value notes so far so good in Asia, but is it?
The value of the industry
How would you rate the industry in terms of value for money today?
?

The advisors are stretched in terms of demands on their abilities
Expectations upon the APAC wealth advisor
In your opinion, what do your private clients value from providers of wealth management services?

Aligning the future wow factors in wealth is now the challenge
Top influences when selecting a wealth management in Asia
What are the main influences in making a decision to choose a wealth manager?
Client response
Advisor response

The advisors are hunting for new business and classic pools are dry
Answering
emails
(5.1 hours)
Client
meetings
(4.9 hours)
Looking for
new clients
(4.7 hours)
Phoning
clients
(4.2 hours)
Research
on markets
(4.3 hours)
Non-client
meetings
(3.7 hours)
Compliance
paperwork
(3.5 hours)
General
paperwork
(3.4 hours)
Client
reporting
(3.1 hours)
Training
(2.2
hours)
Time management of the wealth advisor
How are you allocating your time in an average 40 hour week on these activities?
China RM
manage an
average of 118
clients while in
Singapore it is 75
per RM. All RMs
feel stretched in
terms of client
service delivery

The advisors are aware they can let the clicks do the talking
The rise of the technology elements for an APAC wealth advisor
Which of the following devices do you think you will use MOST within five years to help you carry out the following activities?

But wealth management firms digital surfboard needs some R&D
The challenges of the technology elements for an APAC business model
Do you feel your main financial provider delivers appropriate technology to do the following?

While the wealth world is shifting on the engagement wave length
The changing face of digital interaction
What qualities would you LIKE TO SEE in your main financial providers use of technology
Digital Wealth
Management now
Digital Wealth
Management future

Thinking about the Asia HNW client revolution

Conclusions: so why should we care?
1. Who are Asia’s HNWs?
2. What do they want?
3. How do they want it?
4. Why do they want it?
5. When do they want it?
6. Who do they want it from?
1. An attractive global clientele
2. Sustained wealth creation
3. Efficiently and locally
4. Ambition and preservation
5. Within a decade
6. Wealth managers have a role

Questions – was it worth it for you?

The R&D edge of the world: biggish data

@whatwealthneeds http://on.fb.me/11o5VD2http://linkd.in/ZSdor7
Come and say hello, we’d love to meet you via…

Scorpio Partnership is the leading consumer insight and strategy consultancy to the global wealth industry. We
specialize in understanding and researching a cross section of wealthy clients, turning financial research into actionable
consumer insight to stimulate UHNW client engagement.
Scorpio partnership has been voted best global consultancy to the wealth management industry for three consecutive
years (2007-2009), runner up for Agency of the Year two years in succession (2010-11) and was the 2012 runner up
for the Judges Award for financial services insight. The firm is currently in the final shortlist for the 2013 Thought
Leadership of the Year in Asia.
The firm is independent and owned by managed.
You can find our other reports, UHNW consumer insight and HNW financial research in the Knowledge bank of our
website: http://www.scorpiopartnership.com/knowledge.php

APAC Gen Y presentation to Fund Forum sharing UHNW and HNW investor insight

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