Rethinking private banking in Asia-Pacific

A look into the future

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We expect private banks to undergo major transformation in the next few years

Given the change and challenges facing private banks, we expect to see a dynamic, consolidating market in Asia-Pacific in the years to come. To adapt to the growing trends outlined in the previous section, we expect all private banks to undergo major transformation in the next few years.

The top tier will become digital private banks, with RMs used strategically, where they can demonstrably add client value. The middle layers will consolidate. Several boutiques keep going via personal relationships and a clearly differentiated offering.

With the wealth hubs of Hong Kong and Singapore highly saturated, the next battle ground will be onshore, in markets such as Mainland China and Indonesia.

We envisage private banks of the future offering supporting/enabling platforms for HNWIs to hold their real estate assets with value-add services, such as financing, property management and tax planning.

Looking out even further, we can also imagine the eventual uncoupling of advisory from execution, with some private banks stepping back from portfolio management, leading to an interesting bifurcation in the market.

In this scenario, the role of the bank will change from selling a transactional product to protecting the client’s long-term well-being — far beyond recommending financial products. This may be the key to future competitive advantage, creating stronger relationships with HNWIs.

This is an online summary of key findings. Download the full report.