Photo: flickr: informatique
It’s no secret that Asia is now home to a ton of new wealthy people, especially in India and China. In fact, McKinsey & Co. expects the number of rich people in Asia to rise 14% a year through 2015 (in Europe it will only rise 4%).So naturally, bankers have descended upon the continent to help these newly rich manage their wealth. But according to the WSJ, Asia’s rich don’t always see eye to eye with banks.
As in so many things, this is about how the money is managed (from the WSJ):
While clients in the West want to increase their wealth, they also are concerned with keeping what they have by sticking to conservative investments, and focusing on estate- and tax-planning strategies.
In Asia, clients also tend to be first generation rich, who want to make more money, rather than preserve it. They seek, as one banker said, “private brokers not private bankers.”
“Clients expect yield at a shorter time frame, and sometimes double-digit returns,” said Jeffrey Tang, a director at consultants Towers Watson.
According to McKinsey, Asia’s rich tend to have three or four private bankers. They want to know about the next hot product to make their money multiply, so sometimes smaller banks are left in the dust.
So if you’re heading to Asia thinking you’re going to rake in clients and have an easy time, think twice.