PwC Asia Private Banking Pulse Survey 01/2015 Growth, Product Development, Asset Managers

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PwC Asia Private Banking Pulse Survey
01/2015
Growth, Product Development, Asset Managers
Private Banking Centres
Asset Managers
PwC’s inaugural Asia Private Banking
Pulse Survey, a thematic survey designed
to capture the industry pulse on a regular
basis, reveals that Singapore will remain
ahead as a private banking centre,
although Hong Kong and Shanghai are
close at its heels.
Private banks continue to define criteria
to assess and evaluate asset managers.
Strong investment performance,
governance and control environment and
independence and objectivity are some of
the key criteria for private banks
assessing third party products. Asset
managers are expected now more than
ever, to invest in their communication
with private banks on investment outlook
and research ideas. By having the right
relationship managers on the ground,
asset managers can increase their service
potential to private banks. Clients will
continue to value Relationship Manager
interaction and engagement, however fee
considerations are expected to become a
talking point.
Growth
Overall growth in revenue and AUM will
largely be driven from broadening the
engagement with existing clients,
however the industry view around actual
revenue and AUM growth is fragmented.
Nevertheless, the consensus is that
recruiting the right talent is critical to
deliver on their growth strategy.
Market Focus & Product
Development
Private banks across Asia continue to
evaluate their business market focus,
particularly with regards to service
priorities. Over the next two years,
discretionary portfolio management,
family office services as well as financial
planning are expected to grow in
importance relative to advice-led
portfolio management.
There is also a trends towards building
more capabilities in-house and providing
an overlay to third party managed
products.
Technology
Cybersecurity is now at the forefront for
private banks and over the next two
years, it will progressively shift upwards
in priority and be one of the key areas to
focus on for private banks. With mobile
and social media playing a key role in
everybody’s lives, private banks will
continue to look at opportunities that are
created as a result. Sales penetration and
customer engagement are two key areas
which can be improved using mobile and
social media – which also leads to greater
data collection and data analysis for
product and client behavioural
assessment.
Private Banking Centres
Singapore will remain
ahead as a private
banking centre
66%
Singapore
33%
Hong Kong
Source: PwC Asia Private Banking Pulse Survey 01/2015, ranked responses
Ingredients to making a successful private banking centre:
What matters most isn’t just about gathering assets, but a
robust environment to operate in
Ease of doing
business
Talent Pool
Clear consistent
standards in client
suitability, KYC and
AML requirements
Availability of
relationship
management talent
pool
Regulatory
Governance
Strength of regulatory
governance and
oversight
Source: PwC Asia Private Banking Pulse Survey 01/2015, number of responses
Growth
Growth will largely come from broadening the engagement
with existing clients, but talent grabs will continue
31%
25%
15%
Deepening existing
client segments and
wallet share
Recruitment of more
relationship
managers/teams
bringing in AUM
Source: PwC Asia Private Banking Pulse Survey 01/2015, frequency of responses
New products and
services
Asset Managers
What private banks look for in assessing and evaluating
asset managers: Where third party product providers are
used, a balanced scorecard assessment across a range of
criteria remains in place
Strong investment
performance
Established and proven
portfolio management
methodology
Governance and
control environment
Independence and
objectivity
Consistent team
effort and longevity
Source: PwC Asia Private Banking Pulse Survey 01/2015
What asset managers can do to increase their service
potential to private banks: Asset managers need to up the
ante on communication and put more experienced boots on
the ground
Communicate better on
investment outlook and
research ideas
Better relationship
management
engagement through
more experienced
product development
hires
Source: PwC Asia Private Banking Pulse Survey 01/2015
More frequent training
on products
Technology
Most strategically important technological developments
for private banks: Cybersecurity remains top of the agenda,
but technology adoption in the future will be more proactive
rather than reactive
Cybersecurity and the
risk on theft of
customer data
Mobile technologies for
sales penetration
Social media for
customer engagement
Internet and the
interconnectivity
from front to back
processes
Data analytics for
product and client
behaviourial
assessment
Source: PwC Asia Private Banking Pulse Survey 01/2015, responses to “Very Important” and “Somewhat Important”
Key takeaways
► Fee models are starting to change, and the advent of regulatory
developments in the West will impact on Asia
► Asset manufacturers need to do more to demonstrate value and
stay in the game
► Technology is bringing both positive and negative disruption, and
private banks must continually innovate to stay relevant
Contact us
Antony Eldridge
Singapore Financial Services Leader
+65 6236 7348
[email protected]
Justin Ong
APAC Wealth Management Leader
+65 6236 3708
[email protected]
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