2012-04-02-奥纬咨询-Targeting_the_White_Space_24页_273kb

Emerging Asia Wealth Management: The US$11 TN Opportunity

Market Overview

Emerging Asia offers a significant growth opportunity in wealth management, with over US$11 trillion in unmanaged wealth expected to grow at a 11.4% CAGR globally. However, the industry faces challenges:

• Margin Pressures: Cost-to-income ratios exceed 90%, limiting profitability growth.
• Segment Blind Spots: Most institutions focus on Ultra-HNW (UHNW) and High-Network Wealth (HNW+) segments, neglecting the "Core-Wealth" segment (US$1M-5M+) which represents the largest untapped opportunity.
• Client Experience Gaps: Lack of tailored propositions, over-reliance on non-advised products, and high operational costs hinder client retention and acquisition.

The "White Space": The Core-Wealth Opportunity

• Characteristics:
  • Largest client base and total wealth but under-served.
  • Higher revenue margins (90-125bps) compared to managed wealth.
  • Heterogeneous client base (entrepreneurs, professionals, executives, inheritors).
• Under-Serviced Reasons:
  • Inadequate talent (insufficient relationship managers for scale).
  • Lack of scalable processes.
  • Missed branding and segmentation opportunities.

Eight Levers for Success

To capture the Core-Wealth opportunity, organizations must address:

1. Brand

• Develop a differentiated brand focused on quality and innovation.
• Align messaging and experiences with client clusters (e.g., risk personality, wealth aspiration) to build trust and deepen wallet share.

2. People

• Shift from hiring stars to building a broadly high-performing talent pool.
• Align RM roles with client segments, utilize career frameworks, and enhance training.

3. Segmentation

• Move beyond simple wealth tiers to source-based segmentation (e.g., entrepreneurs, professionals).
• Link segmentation to RM skill sets and training.

4. Product

• Transition from bespoke product construction to mass-customerized, guided portfolios.
• Use goal-based investing and compliance-driven frameworks to cater to diverse needs.

5. Service

• Scale cross-functional expertise to deliver integrated services (e.g., tax, property, wealth planning).
• Leverage technology for consistency and efficiency.

6. Pricing

• Adopt transparent, profit-linked fee schedules and use data analytics to optimize RM pricing.
• Increase price consistency across segments to align with client expectations.

7. Process

• Implement structured sales and advisory processes (e.g., cluster analysis).
• Enhance CRM systems for client insight and real-time enablement.

8. Operations

• Unify data systems across banking and investments to deliver personalized, scalable service.
• Invest in client-knowledge centralization and cross-functional teamwork.

Conclusion

The Core-Wealth segment in Emerging Asia presents a substantial US$11 TN opportunity, but capturing it requires a strategic overhaul. Organizations must prioritize Core-Wealth through:

• Targeted market coverage: Define priorities for onshore/offshore strategies.
• Actionable segmentation: Leverage data insights to design client-specific propositions.
• Integrated operations: Unify technology and talent to deliver a seamless client experience.

Success lies in aligning brand, talent, and processes with the unique characteristics of Core-Wealth clients to drive sustainable growth.