Singapore, Hong Kong, October 21, 2014 – Eighty-two percent of High Net Worth Individuals1 in Asia-Pacific (excl. Japan)2 expect most or all of their wealth management relationship to be conducted through digital channels in five years, in contrast to 61 percent of HNWIs in the rest of the world3, according to the Asia-Pacific Wealth Report 2014 released today by Capgemini and RBC Wealth Management. Demand for digital interactions, including through the emerging channels of mobile applications, social media, and video, is high across Asia-Pacific HNWIs of all ages4 and wealth levels.
The report notes that the stakes are high for firms that do not deliver a sufficient digital experience to the region’s HNWIs: 83 percent of those in Asia-Pacific (excl. Japan) would consider leaving firms that lack an integrated channel experience versus 62 percent of those in the rest of the world.
“The risk of not getting digital right is high for wealth management firms in Asia-Pacific, as its high net worth individuals are distinguishing themselves as more digitally-minded than their peers in the rest of the world,” said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services. “Asia-Pacific wealth management firms will need to offer a deep, multi-channel experience that takes into account regional variations in order to meet these high expectations.”
Digital contact essential for region’s HNWIs
Almost three-quarters (73 percent) of Asia-Pacific (excl. Japan) HNWIs considered most or all of their current wealth management relationship to already be digital compared to only 55 percent of those in the rest of the world.
Asia-Pacific is also the only region in the world where HNWIs feel digital contact is more important than direct contact with their wealth managers, offering great opportunities for wealth management firms to better meet HNWI needs through digital channels.
Asia-Pacific (excl. Japan) HNWIs uniquely cite digital contact as more important for every type of interaction with firms, including gathering information, engaging with wealth managers, and executing transactions. In particular, they have the highest preference globally for real-time reporting (45 percent) over scheduled reporting (26 percent), though those in Hong Kong proved an exception, preferring reports on a scheduled basis.
Significant variations in digital infrastructure and HNWI demands across markets
Digital infrastructure, as well as the level of demand for digital services, varies greatly across Asia-Pacific, making it difficult for firms to develop a pan-Asia-Pacific strategy for digital technology and a multi-channel experience.
At the same time, the report profiles the critical importance of offering a multi-channel experience to the region’’s HNWIs. Their demands are more complex, requiring capabilities across direct, in-person, and traditional digital channels such as websites, as well as emerging digital channels of mobile applications, social media, and video. Integration of these newer channels is particularly appropriate in the region as mobile usurps broadband capabilities in some areas, social media complements the cultural emphasis on peer feedback, and video consumption surpasses that of Western markets.
“Digital technology offers Asia-Pacific wealth management firms significant opportunities to provide high net worth individuals with an enhanced client experience,” said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance. “While wealth managers remain the centrepoint of the connection high net worth individuals have with their firms, there is no question that digital channels and interactions are becoming an increasingly important element of the client-wealth manager relationship.”
Digital also can help firms with automation and compliance
The report emphasises that digital technology can help firms capitalise on the growth potential of the Asia-Pacific wealth market. On top of enhancing the client experience, digital capabilities also can help firms address varying business challenges: digital automation can reduce operating costs and improve wealth manager productivity, while helping firms achieve scalability. As regulations develop and are implemented in the region, compliance technology can help firms ensure that they are current with evolving requirements.
View the report at www.asiapacificwealthreport.com.
With almost 140,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organisation, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
About Capgemini’s Financial Services Global Business Unit
Capgemini’s Global Financial Services Business Unit brings deep industry experience, innovative service offerings and next generation global delivery to serve the financial services industry. With a network of 24,000 professionals serving over 900 clients worldwide Capgemini collaborates with leading banks, insurers and capital market companies to deliver business and IT solutions and thought leadership which create tangible value. Our wealth management practice can help firms from strategy through to implementation. Based on our unique insights into the size and potential of target markets across the globe, we help clients implement new client strategies, adapt their practice models, and ensure solutions and costs are appropriate relative to revenue and profitability expectations. We further help firms develop, and implement the operational infrastructures—including operating models, processes, and technologies—required to retain existing clients and acquire new relationships. Learn more about us at www.capgemini.com. Learn more about our Wealth Management solutions at www.capgemini.com/financialservices.
About RBC Wealth Management
RBC Wealth Management is one of the world’s top five largest wealth managers*. RBC Wealth Management directly serves affluent, high-net-worth and ultra-high net worth clients in Canada, the United States, Latin America, Europe, the Middle East, Africa, and Asia with a full suite of banking, investment, trust and other wealth management solutions. The business also provides asset management products and services directly and through RBC and third party distributors to institutional and individual clients, through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC Wealth Management has more than C$700 billion of assets under administration, more than C$442 billion of assets under management and approximately 4,400 financial consultants, advisors, private bankers, and trust officers. For more information, please visit www.rbcwealthmanagement.com
*Scorpio Partnership Global Private Banking KPI Benchmark 2014. In the United States, securities are offered through RBC Wealth Management, a division of RBC Capital Markets, LLC, a wholly owned subsidiary of Royal Bank of Canada. Member NYSE/FINRA/SIPC.
Royal Bank of Canada is Canada’s largest bank, and one of the largest banks in the world, based on market capitalisation. We are one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. We employ approximately 79,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 40 other countries. For more information, please visit rbc.com.
RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2013, we contributed more than $104 million to causes worldwide, including donations and community investments of more than $69 million and $35 million in sponsorships. Learn more at www.rbc.com/community-sustainability.