Wealth management and asset management are already prevalent in the lifestyles of many people in the APAC region. This is set to increase dramatically as a rising youthful workforce offers an attractive hedge against an ageing population. The region is home to more than 600 million youths aged between 15 and 24. The potential is enormous in relation to wealth management and asset management. So, what does the future hold?

 

Changing employment market

 

The youthful demographic emerging in the APAC region will be the key to short, medium and long-term economic growth. In recent times there have been numerous barriers to entry for those looking towards the employment market. Discrimination and inequalities have been all too commonplace across the region. This is set to change due to a mixture of:-

 

• Technology
• Climate change
• Lifestyle changes

 

The youthful employment market of today is very tech-savvy, with many holding strong principles concerning the environment and ESG. Considering that the APAC region is one of the leading FinTech markets, it is as if the two parties were destined to work together.

 

Economic power will increase disposable income

 

As the full power of China emerges from the shadows, with the authorities working hand-in-hand with Hong Kong, foreign investment continues to grow. Then we have the likes of Vietnam, India, Indonesia and the Philippines, which continue to show innovation and forward-thinking strategies in equal measures. The APAC region is expected to account for more than 40% of global GDP by 2040 as the youthful population are released into the employment market.

 

Wealth management and asset management

 

The FinTech sector has not only brought finance to the mass market, but it has also made many people consider long-term wealth management services. While a youthful population will be enjoying a very different lifestyle in the future, there are signs of a more structured approach to finance. Asset management will play a key role going forward, with tech-savvy investors likely more open to different investmentclasses and an active asset management style.

 

Success breeds success

 

Many factors are coming together that will impact the APACwealth management industry in the longer term. We have:-

 

• Ever-increasing international investment
• A technology revolution
• The opening of the Chinese economy
• Hong Kong’s growing status as a global financial hub
• More private equity investment than ever before
• Ever-increasing inward trade within the APAC region

 

Consequently, net disposable income is expected to increase dramatically over the next few decades, which will continually feed demand for wealth management services. The Chinese authorities are also now more open to working with international wealth management companies to service a growing market. This is a boom that has been many years in the making, and post-Covid, the stage is most certainly set for sustained economic growth.

 

Conclusion

 

If we look back to the 1980s, Japan dominated the Far East, which had a considerable influence over global financial markets. Unfortunately, an extended period of economic mismanagement, deflation and subdued economic growth (to say the least) set the APAC region back many years. While there is no doubt that China has recently provided the economic fuel to propel the region forward, there is growing support from countries such as Vietnam, India, etc.

 

The technology sector, especially FinTech, is expected to grow significantly in the short, medium and longer term. This will help boost disposable income, demand for wealth management services, and a more "modern-day" approach to asset management.

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