The region's economy is as big as Canada and offers the industry opportunities according to a new report
The rise of the wealth management industry in Asia is well documented with substantial increases in the region’s population of middle class and super-wealthy individuals.
One region is being touted as a potential source of opportunity for financial services firms: China’s Greater Bay Area.
A new report from Bain & Company says that customer demand is set to rise in the area, which has a population of more than 70 million and a GDP of around US$1.7 trillion with roughly 8% annual growth. That gives it an economy around the size of Canada’s.
“Now is the time for financial services companies to take advantage of the opportunities stemming from the Greater Bay Area, in order to ensure that they are primed to meet the customer demand moving forward” said Henrik Naujoks, co-author of the report and Bain & Company's Asia Pacific Financial Services Leader, based in Hong Kong. “It’s clear that customers are interested and see the value in cross-boundary products, so it’s an important time for firms who must start investing in strategic ways to ensure that they are ready to meet the moment.”
Insights analyzing opportunity show an immediate opportunity for growth in wealth management along with – to a lesser extent – life insurance.
Digital impact
Asia’s financial services consumers are already well-versed in digital platforms and the report advises ensuring that this is addressed.
“Connectivity is the name of the game here and firms should be looking at investing to perfect their omnichannel experience, marketing and digital solutions as customers expect an innovative, connected and seamless experience or else they will sign up with someone else,” said Priscilla Dell’Orto, Bain & Company partner and a co-author of the report.
Bain & Company’s report concludes that: “At this point of time, cross-boundary wealth management connect and insurance service centers are among some of the key GBA initiatives under active discussion and may come soon.”
The full report is available at bain.com/insights
