Wealth Management Firms In Asia are Cautious To Promote Digital Assets

Wealth Management Firms In Asia are Cautious To Promote Digital Assets

  • Asian investors are interested in digital assets, but wealth management firms are hesitant to support them.
  • A survey in the report shows that over half of Asian investors own virtual assets in some way.
  • 91% of investors indicated that their investing goals were neither met nor exceeded in 2021.

According to a recent Accenture report, investors in the Asia-Pacific area increasingly expect their main asset manager to provide them with additional financial advice services as the market becomes more difficult. Asian investors have a great interest in digital assets, but wealth management organizations are reluctant to provide that need.

Many Asian investors have already committed funds to digital assets, and many more are expected to do so this year, according to the Accenture report titled ‘The Future of Asia Wealth Management’. However, only a small number of advisory companies are willing or able to assist them with this.

Research shows that wealth management businesses have set plans to almost quadruple assets under management and increase revenues by 60% by 2025 relative to 2021 levels in Asia, which is the primary center of operation for these firms.

Despite this, in order to achieve their lofty growth targets, companies would have to concentrate on retaining and attracting rich clientele. Their present relationship managers (RMs) would have to be retained, and new ones would have to be recruited, all in a market where competent RMs are in limited supply.

Less than half of investors are happy with their primary wealth manager, even though 91% indicated their investing goals were met or exceeded last year. As market volatility rises, providing investment returns will become more difficult, according to the report.

Accenture-Asia-Affluent-Investor
Source: Accenture

Offering financial guidance and addressing a wider variety of investor objectives would boost customer satisfaction. Investors who are happy with their adviser hold six percent more assets with their main finance advisor.

It is apparent that investors are seeking new things to invest in and that this includes digital assets, said Nicole Bodack, Accenture’s Growth Markets group head.

Some financial managers have already begun the transformation and integration of next-generation advising into their offering. Companies, on the other hand, will need to develop RMs in key aspects so that they can satisfy the demands of their current customers and gain new clients in the long term, according to Accenture.