Hundreds of billions of dollars in Asia are expected to transfer from traditional financial institutions to wealthtech companies, according to a survey by McKinsey & Company.
Up to $700 billion of wealth from mass affluent and high net worth individuals in Asia Pacific is projected to shift from traditional financial institutions to wealthtech firms, according to a survey by McKinsey & Company. The findings were unveiled at the third edition of the Endowus WealthTech Conference in Singapore which saw 2,500 attendees.
«The WealthTech sector continues to enjoy a positive trajectory as more of Asia’s affluent become familiar and comfortable with the diverse digital offerings in the market,» said Samuel Rhee, co-founder and chairman of Endowus.
Digital Preferences
Around 50 to 60 percent of respondents expressed a desire to grow their assets through digital wealth platforms. 80 percent said they trusted such platforms for investment advice with many citing cost-effectiveness (59 percent), transparency and control (61 percent) as well as personalized strategies (57 percent) as key benefits. Despite the gravitation towards digitalization, 45 percent still prefer also having human assistance.
«[W]hile the adoption of technology rises across customer segments, the wealth management industry must also evolve to effectively address these new preferences and behavior,» Rhee added. «With increasing expectations for seamless experiences between the digital and human realms, WealthTech players must ensure that they can maximize convenience and accessibility, without compromising on quality and connections.»
The survey was conducted with more than 1,000 mass affluent, affluent, and high net worth investors across the APAC region.
