From Emerging to Established: Why Asia Could Leapfrog Global Rivals in Wealth Management

Global trends in wealth management are undergoing a seismic transformation, driven by a convergence of technological advancements, demographic shifts, and evolving investor expectations. Across the globe, wealth managers are grappling with how to cater to a new generation of digitally-savvy investors, while also navigating economic and geopolitical uncertainty. However Asia, while diverse across the continent’s many markets, stands out as a region uniquely poised to capitalize on these forces and reshape the future of the financial ecosystem.

The rapid economic ascent of many markets across Asia, coupled with its unparalleled digital growth, has set the stage for a leap in wealth management capabilities. As the global epicenter of fintech innovation, the region boasts some of the highest adoption rates for digital financial services, bolstered by governments and institutions that are eager to modernize. The question is no longer whether Asia will emerge as a leader in wealthtech—it’s whether it might outpace global competitors altogether.

Asia is home to four of the biggest Fintech Unicorns. China, along with Japan and Korea, India, and Taiwan, accounted for nearly three-fourths of the Fintech patents filed worldwide last year.

I think that says a lot about just how bright the future is for the financial ecosystem in Asia.

I was honored to speak at the Singapore Fintech Festival recently where I had some fantastic conversations about the wealth management opportunity in this region.

The industry faces converging megatrends that are redefining investor needs and reshaping the future of wealth. These include demographic shifts but also rapid technology innovation, evolving regulation, heightened competition, and economic and geopolitical uncertainty.

Asia, while vast and full of different business cultures and societies, has a unique opportunity to capitalize on these shifts and to leapfrog its rivals in terms of wealthtech.

Younger demographics are key, but unlike other regions where legacy systems and established ways of working can sometimes slow innovation, Asia’s tech environment is far less encumbered by outdated infrastructure.

And this could be the ace up the sleeve for the region’s aspiring wealthtech disruptors.

The next generation of investors will drive innovation

As I visit our FNZ offices across the APAC region, it’s impossible to ignore both the accumulation and transfer of wealth each and every year.

Wealth-X predicts a $15 trillion wealth transfer from older to younger generations by 2030.

Younger investors in Asia are increasingly looking for personalized, digital wealth management options that provide flexibility and accessibility. Our research shows that within APAC, 75% of investors expect providers to offer digital experiences on par with leading born-digital companies. And half say they would invest through big brand retailers or tech companies if given the opportunity (54%).

The wealth managers that deliver advanced digital platforms that simplify investment processes, automate operations, and enable real-time, user-friendly experiences are setting themselves up for success.

Unencumbered by legacy systems institutions across Asia can innovate quicker

Unlike other regions, the technology environment in markets such as Singapore is far less encumbered by outdated infrastructure.

Many banks across Asia have only expanded into wealth management in the last decade, and operate on far newer systems. This enables these institutions to focus more on innovation and rapid growth rather than navigating the costly and complex process of legacy upgrades.

Our research shows over the next three years, 67% of APAC wealth firms expect a move to a hybrid, majority tech-driven business strategy.

Instead of retrofitting systems to suit older processes, the key is to deploy modern, scalable technology platforms designed to meet today’s demands from the outset.

By capitalizing on Asia’s readiness for rapid technological progress, wealth managers can empower clients and deliver digital experiences that not only improve operational efficiency but also provide end investors with greater control, choice, and opportunity for growth.

Looking to the future

FNZ’s vision is about "Opening up Wealth”, ultimately driving more personalized, efficient services that help more people access better returns and invest in the areas they care about. Technology is the engine behind this transformation and we’re seeing this shift in regions across Asia.

As we work with banks, asset managers and securities firms that are expanding into wealth, we see bright prospects across the sector – and maybe even the opportunity for some financial institutions to leapfrog their rivals across the Ocean.

Now over to the brilliant firms in the US and Europe to prove me wrong.