Ed Lopez, executive vice president of SunGard’s Ambit Wealth & Private Banking business unit, said, “Today Asia houses the world’s largest high net worth population*: this new revenue stream has made it one of the world’s most attractive banking regions. As a result, competition is intensifying, client demands are growing and regulatory pressures expanding. Wealth managers and private banks in the region will need to boost their operational efficiency to more effectively respond to these widespread changes and capitalize on new opportunities in order to help secure long-term profitability.”
SunGard has identified ten trends shaping the Asian wealth management and private banking industry:
1. With domestic retail players expanding into wealth management, and international counterparts and new entrants such as family offices, competition is diversifying.
2. As the Asian high net worth individual sector matures, demand increases for more sophisticated investment products.
3. Asian banks moving towards advisory-based services face challenges in building client trust and confidence, complicated by client propensity to invest a small portion of their wealth with any one advisor.
4. To deliver better, more competitive client service, relationship managers will play a more advisory-based role, which requires a single client view across the bank and process efficiency.
5. With margins under pressure, staff productivity is under greater scrutiny as banks strive to reduce cost to income ratios.
6. Banks are increasingly investing in front-office tools to help empower advisors to establish deeper, sustainable and more targeted relationships.
7. Banks are seeking more control of client relationships through better management of customer information as competition intensifies staff attrition.
8. Local banks need strategies to help entice and retain wealth onshore, while regional retail players need private banking strategies to help capture new opportunities.
9. The shift towards mobility of services and information means relationship managers are required to interact and provide account updates to clients ‘on the go’ with relevant, real-time information.
10. An increasing focus on governance, risk and compliance around sales, product suitability, appropriate disclosures and advisor competency standards, will help Asian private banks better manage counterparty risk.
SunGard’s Ambit Wealth Management solution suite is a complete wealth management system that helps banks and family offices across Asia develop highly personalized client services, to help them attract, retain and grow profitable client relationships. The solution suite also helps financial institutions improve staff productivity through better workflow management and helps improve cost control and operational efficiency for better profitability management.
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