With the number of mass affluent individuals in Asia reaching 17.58 million by 2022, the demand for an enhanced wealth management system is expected to increase manifolds. Since this segment is positioned higher than retail wealth clients, they expect an experience similar to private banking, including access to a relationship manager, customizable products, and prompt service.

Avaloq and IBS Intelligence have collaborated on a whitepaper that discusses how private banks in Asia, with the dynamic banking structures, are attempting to cater to that sector. This whitepaper strives to figure out the commonalities amongst the service models adopted by the banks as well as future trends.

Typically structured to serve the private and retail segments, the banks have been prioritizing the development of specialized offerings to accommodate the growing mass affluent segment while staying profitable. The whitepaper explores various aspects of the service models adopted by the Asian private banks including UBS Taiwan, HSBC Singapore; such as their geographical presence, technological infrastructure, organization, and pricing structure.

The whitepaper explores the optimal technology framework and points out the similarity between the service models with features including investment in technology, provision for a dedicated RM and additional lucrative investment products.

The success of the new banking model pivots on increasing segment scalability, customer engagement, and the use of self-serve channels. Capturing this segment could be a strong driver for the bank, helping both new client acquisition and retention of existing retail customers.

To read the whitepaper, please visit How Asian private banks are targeting the Mass Affluent segment.

by Megha Bhattacharya
Market Analyst at IBS Intelligence