67 connected strategy for asian wealth management ^Top Implication #3. The channel mix will change materially in Asia, reducing market share for traditional bank-based wealth management businesses As technology allows players to create direct connections with customers, disinterme- diation and a reconfiguration of channels will continue. Today, nearly two thirds (63%) of asset managers in Asia see banks as their most important channel for investment product distribution. In five years, less than 30% think it will remain their most important channel for wealth management with digital platforms and direct to consumer models gaining greater importance (see Figure 30). A reduced share of wealth management fees together with low interest rates, the continued digital adoption by clients against a backdrop of banks’ legacy branch and technology will be headwinds for bank-based wealth manager earnings. The changed channel mix will be a function of more players stepping up their own con- nected distribution efforts and increased client migration to newer connected channels and experiences. • Asset managers will expand their Connected Producer relationships with clients via third-party digital marketplace platforms and via proprietary direct-to-con- sumer platforms. Asset managers see increasing the use of digital sales as a top Trending: The war for new talent As wealth managers in Asia seek to hire thousands of new advisors and bankers, triggering a war for traditional talent, demand for frontline talent will continue to exceed supply. A less publicized battle is also underway to attract talent for the digital transformation of the industry with roles such as product owners, UI/UX designers, programmers, Machine Learning specialists and risk and compliance personnel with digital experience. To respond to clients’ needs for more convenience and with the higher employee-related costs, banks will have to realize higher productivity by enabling advisors via hybrid relationship models, requiring advisory and technology talent. The challenges of recruiting technology talent are likely to outweigh the arms race for human advisors in the longer term as wealth managers are not just competing within their industry but across all industries for such talent. Clearly, wealth managers will have to prioritize which client journeys or which engagement models are critical for them and allocate resources accordingly to execute their connected strategy.