50 connected strategy for asian wealth management ^Top • Even in mature Asian markets such as Korea, connected producer architectures have emerged. For example, Hanwah Asset Management, Korea’s 4th largest local asset manager with $90bn in assets, recently launched an app54 allowing investors to buy directly from a curated offering of equity and bond funds. Investors subscribing di- rectly do not incur a sales charge and benefit from reduced fees. Its proprietary fund marketplace is designed to bypass third-party channels such as banks, brokerages and insurers. Regulatory support is also encouraging Korean players to build direct platforms. • Insurers too continue to expand their presence in wealth management, driven both by overlapping client needs around wealth management and financial planning in Asia as well as a desire to build direct or hybrid distribution models with consumers directly, bypassing bank distribution models. In addition, they are also attempting to build connected relationships via health and wellness apps such as PRU Pulse and AIA Vitality to drive data driven engagement and sales over time. Potential evolution of archetype Asset managers will continue to increase their share of sales both via direct-to-consumer platforms and third-party platforms. They will continue to expand channels of connec- tion to customers e.g., holding live streaming workshops, podcasts and other channels to communicate with customers to allow for investor education and product marketing. Since customers still generally prefer hybrid approaches to wealth management involv- ing people and digital services, it will potentially be economically infeasible for asset managers to replace the distribution power of local banks. The DIY segment will likely be dominated by superapps, neobanks and the digital banking units of universal banks. This will make it challenging for pure, standalone asset managers to build direct distribution. However, increasing shelf space on the superapps and the distribution arms of parent entities offer asset managers ways to achieve viable connected producer architectures. connected market makers Archetype description: A connected market maker is a digital platform that connects clients to multiple asset managers and wealth services (e.g., financial planning, advi- sory). Market makers often make a wider range of daily lifestyle services available to clients and curate popular, personalized investment products. This is a relatively new model in Asia but one that has demonstrated significant growth over the last decade 54 “Hanwha Asset unveils fund marketplace app”, The Korea Herald, 2021