Wealth tech entrepreneur Derrick Tan discusses the increased demand for wealth management services as a result of growing inflows of money to Asia.
For the wealth management industry, Asia is a very exciting place to be right now as the industry is evolving by the day. New regulations, digital innovations, market forces, and global economic conditions are shifting the wealth landscape in all directions.
«No one knows for sure what the full impact of this wealth influx would be, but it is certainly interesting to witness the change as it happens before our eyes,» Derrick Tan, chairman and CEO of the wealth tech company WRISE Wealth Management told finews.asia.
The way family offices conduct wealth management is also changing and digital wealth tech services play an important role. However, the human factor remains an important aspect of the holistic servicing of family office needs. This demand for both of them is the reason why many ultra-rich families set up investment offices in established financial hubs, he said.
Hybrid Environment
Today and going forward, the family office will require a hybrid environment, Tan said. The skills and expertise of in-house staff will be supplemented by third-party consultants, investment specialists, and digital tools.
For WRISE, its proprietary wealth management system TREX will help investment offices streamline processes and bridge skill gaps. TREX can aggregate views of clients’ total assets with 24/7 access and full transparency, so they can gain greater control over the management of their wealth.
Money Moves in Asia
It is already common knowledge that Singapore and Hong Kong are the main destinations for money inflows from wealthy individuals. After the Covid-19 pandemic, Singapore is said to have attracted more interest and surpassed Hong Kong in that regard.
Now after the re-opening, will the money flow back to Hong Kong? «It is not likely that any of them would quickly migrate out of their chosen destination without a compelling reason to do so,» Tan said.
There are several considerations involved in a family office transferring its wealth to a different location. All financial hubs will have laws that mandate family offices to apportion a part of their wealth for local investments, he continued.
Near to Customers
Launched in August 2022 in Singapore, WRISE opened an office in Hong Kong in January 2023. «As a business, we want to be where our customers are,» Tan said.
There is a strong demand for wealth management services in Singapore and Hong Kong. Hence, WRISE believes that penetration into these two markets would be ideal for our business growth, he added.
At the end of the day, WRISE will continue to set up a presence in financially conducive locations to better serve clients, Tan said.
WRISE is a wealth management organization that specializes in wealth tech, advisory, and professional services for the UHNWIs and their family offices.
