7 connected strategy for asian wealth management ^Top 1. Wealth Management in Asia — Current State of Play W ealth management in Asia represents a $45-50 trillion market size3 and has been growing twice as fast (10-12% CAGR) as global wealth (5-6% CAGR). Wealth growth from Asia is projected to account for a third of total global wealth growth over the next five years. Of the total $65 trillion in new financial wealth that will be created by 2025, a third ($22 trillion) is projected to come from Asia. Moreover, wealth advisory and managed assets are under-penetrated at 15-20% of the total personal wealth pool, allowing for significant growth headroom. customer needs and journey From a client’s perspective, wealth management is about meeting a set of key needs such as making their current wealth work harder for them, funding their children’s edu- cation, ensuring sufficient income for retirement, preserving their wealth, and eventually transferring their wealth4 (see Figure 1). Customers in most major markets5 in Asia see these as their top five goals. Clients in Asia are typically segmented based on their level of wealth from mass market and mass affluent through to ultra-HNW6. As investible as- sets increase through these wealth bands, the scope, sophistication and range of wealth management services needed increase. Wealth management services and advice are often generated and delivered by a human advisor while trade execution for clients is increasingly automated. There are three broad behavioral types of clients in Asia based on the degree to which they rely on an advisor (see Figure 27). Those who are self-directed or “do it yourself” (DIY), those who are ad- vice seekers and those who are delegators. While precise estimates of these segments vary across markets in Asia, most consumer studies8 indicate that the two largest groups by far are the self-directed (30-50% of consumers) and the advice seekers (40-65% of consumers). A relatively small group (5-10% of consumers) are delegators. Particularly 3 BCG Global wealth reports, 2009-20; Includes cash, deposits, bonds, stocks, funds, insurance, pensions and select other assets 4 “One step forward, half a step back: Meeting financial goals in Asia”, Manulife Asset Management, 2015 5 Based on survey results in China, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Singapore and Taiwan 6 Investible assets per client: Mass $30m 7 “Asia: Hong Kong FinTech company launches roboadvisor app”, RFI Group, 2017 8 Triangulated across Deloitte, Accenture, RFI