Winning the wealth tech revolution

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By 2018, Asia-Pacific will be the world’s largest wealth management market, with US$61 trillion in assets — bigger than either the US or Europe — and growing at three times the rate of the rest of the world. By 2030, wealth in China alone will be similar to that of the US today.

But this growth bonanza won’t necessarily fall to incumbents. Each element of the wealth management value chain is being disrupted by new technologies, driving the sector’s transformation. The winners will be existing institutions and new players who harness the following disruptive technologies most effectively:

EY - Advice and distribution
EY - Roboadvisory
EY - Account administration
EY - Robotics
EY - Artificial intelligence
EY - Asset management
EY - Blockchain
EY - Asset servicing

 How can the industry make the most of wealth tech?

To make wealth tech solutions realize their potential in Asia-Pacific, the sector will need to:

Our view

By the time Asia-Pacific becomes the world’s largest wealth market, the sector will be fundamentally different. The investor experience will improve dramatically, with more convenient onboarding, better quality advice and access to more investment opportunities.

At the same time, advisors will become more effective and be able to fully align themselves with the best interest of their clients, the back office will become fully automated and trading functions will gain great efficiencies.

We are seeing a lot of hype around many of these developments. In reality, we expect steady evolution — not revolution — as it will take time to proof and embed technologies in business as usual.

However, the winners will be those who grasp the potential of wealth tech and start to innovate now.