(1.03) Private Banking & Wealth Management

With assets under management expected to double to USD2 trillion by 2022, the growth outlook for the private wealth management (PWM) sector in Hong Kong remains strong.
ANZ is concerned about the growing inter-connectedness between banks and non-bank financial institutions through the selling of wealth management products that are off banks' balance sheets and are exposed to increasing credit risks.
Buoyed by a decade-long bull market, robo advisory firms have made significant inroads in the U.S. wealth management market since the financial crisis - assets on digital platforms are now expected to top $1 trillion by next year.
Asia will reach over US$900 billion in retail banking revenue by 2020, growing at about 14% per year, and is expected to be the second largest wealth management region globally after the US, with more personal financial assets residing in Asia than Europe.
Wealth managers who have not already positioned their firms for the future will have a tough go of it in the year ahead, as they face continued economic and market pressures.
Brazil's second-largest private bank Bradesco will ramp up its efforts around artificial intelligence to boost sales, improve customer experience and reduce operating costs in 2019.
Robo-advice is now the fastest growing area of wealth management globally, expected to grow to US$2.2 trillion, or five percent of all money managed, by 2020.
All banks will have to adopt artificial intelligence within the next five years to keep up with the demands of the next generation of customers, according to a former Barclays wealth manager.
Some banks' capital ratios will be further lifted over the coming year by the announced divestments of their wealth management and life insurance businesses.
In the next five years, 25 percent of the total wealth of HNWIs will convert into crypto.
64% of wealth managers agree that intergenerational wealth transfers will be a big source of new business in the coming years.
The wealth management industry has been undergoing transformation since the financial crisis, and 2017 will be another year marked with changes to business models and the way providers interact with clients.
Britain's government will introduce new investment regulations that will allow individuals and wealth managers to have their say on where their money is invested.
Any tax solely targeted at personal or private wealth could be counter-intuitive to the efforts the Government has put in place to develop Singapore into the premier hub for wealth management.
The China Banking Regulatory Commission has strengthened its oversight of wealth management products by requiring lenders to more clearly disclose risks to investors and prohibiting WMP issuers from investing in their own products.
A draft risk assessment carried out by the Bahamas authorities themselves admits the high risk of money laundering in its private banking and trust company sectors.
Over the next few years, wealth managers will be under pressure to humanize the financial planning process as well as scale it.
There are a variety of ways that the technology underpinning Alexa will likely spread throughout wealth management.
A majority of Indonesian wealth managers expect demand for advisory and execution-only mandates to increase in the next two years.
94% of insurers expect digital transformation to have the biggest impact on how they do business with customers over the next five years.
China's market for wealth management products is due for some pain as officials tighten regulations on the sector amid their campaign to curb financial risk.
In 2017 wealth management firms will gain a competitive advantage by adopting integrated digital capabilities that are aligned with their more holistic offline propositions.
US$4.7 trillion in revenues from financial services is at risk of being displaced by FinTechs in Canada.

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Last updated: 22 October 2019