High net worth wealth tied to technology, notably in Asia, will be hit the hardest by the ongoing banking crisis in the US, according to GlobalData.
Tech reliance on US lenders like Silicon Valley Bank, Silvergate and Signature Bank for services like financing, payroll or wealth management will hit the riches of those from the sector itself especially hard, according to GlobalData.
«The ongoing bank run will hit the technology sector globally, with key markets where the tech sector plays a big role in generating high net worth (HNW) wealth suffering more than others,» the London-headquartered data and analytics firm said in a report.
Tech Wealth in Asia
According to GlobalData’s «HNW Customer Demographics Analytics 2022» report, 12 percent of global HNW individuals have wealth linked to the technology sector – excluding those inheriting family wealth – with North America and Asia Pacific owning the highest share of such people.
«Countries like Israel, Sweden, and India, along with the US, where technology has been a big driver of HNW wealth, will suffer outsized and negative impacts on their wealth markets going forward,» said GlobalData wealth management analyst Nandita Shukla.
«The US banking crisis raises immediate concerns about the wealth associated with the technology sector and also demands a new engagement strategy for private bankers catering to clients in the sector around the world. The impact is global but specifically acute for the countries with high technology-linked investments.»
