15 connected strategy for asian wealth management ^Top It is important to note that since our whitepaper is an analysis at the industry level, we depict the efficiency frontier across a range of industry sub-sectors and customer segments, ranging from private banks for HNW clients through to roboadvisors for mass market clients. We also believe that capturing the full range of potentially competing of- ferings makes individual firms more alert to developments in and new competitors from adjacent sub-sectors in the industry. A variation of this approach would be to consider a client’s willingness-to-pay for wealth management services that are in practice available to her. For example, a mass market client would also appreciate the brand and services of a private bank but may simply not have the Assets under Management (“AuM”) to be able to become a private bank client. As such, the efficiency frontier could be created for a specific customer segment such as, say, only HNW individuals and players focused on that segment. Figure 5: The current efficiency frontier for wealth managers in Asia In the next section, we describe the concept of a Connected Strategy and make the case that it offers wealth managers a solution to break from the current efficiency frontier, enabling competitive differentiation and scale.  $50k 100% 75% 50% 25% 0% Private Banks Fulfillment cost (cost income ratio) Willingness to pay (Avg. rev. per customer) Bank-based wealth managers Online trading platforms Robo advisors** **A typical roboadvisor’s cost income ratio is estimated on a marginal basis Source: Authors' analysis