Singapore’s wealth management industry must balance ‘high touch’ and ‘high tech’ to meet emerging client expectations – new Capco survey
85% of Singapore respondents have increased their use of digital channels to access wealth management offerings over the past two years
59% say they are comfortable with AI guiding wealth management decisions
SINGAPORE, JUNE 17, 2024 – Growing use of digital channels, the adoption of robo-advisory services, and a positive attitude to AI-guided wealth management are key themes to emerge from a new survey of 500 Singaporeans with minimum investable assets of US$100,000 conducted by Capco, the global management and technology consultancy.
As the wealth management industry competes to attract the next generation of investors, Capco’s survey reveals that 91% of those under 35 years of age have increased their use of digital channels for wealth management purposes in the last two years. This also holds true for a lower but still significant percentage (75%) of respondents aged 45-64 years. In sharper contrast, 76% of respondents under 35 years old say they are comfortable with AI guiding their wealth management decisions compared to just 42% of respondents aged 45-64 years.
The survey also found that many respondents under 35 years of age now use robo-advisory services – 40%, compared to 16% of respondents aged 45-64 years. Among those not currently using robo-advisory services, a higher proportion of this younger demographic say they are ‘very likely’ to do so in future (27% compared to 8%).
Capco’s survey report explores how Singaporeans are managing their wealth, how they choose and prefer to communicate about wealth management, where they turn for investment ideas, and their preferred balance of digital self-service and human interaction. It offers recommendations to wealth managers seeking to determine how and where they should position themselves on the digitalization spectrum, and how they can communicate most effectively with clients across multiple channels.
James Arnett, Managing Partner, APAC & Middle East at Capco, said: “Our new survey highlights that change is coming to Singapore’s wealth management industry. Providers and advisers are exploring how to strike an optimal balance between technology-powered innovation and a more traditional high touch business model as they look to attract and retain the next generation of clients.”
Hayley Haupt, Partner and APAC Wealth Management Lead at Capco, said: “We see that younger wealth clients have a greater predisposition to use digital channels and tools, including robo-advisors and AI, to engage with wealth management offerings. Standing still is no longer an option, and wealth managers need to ask themselves if they are ready to take full advantage of emerging technologies and modern data tools or architectures.”
Laurens Koppelaar, Singapore Wealth Management Lead at Capco, said: “Face-to-face communication remains attractive to many wealthy investors, but sophisticated digital communications are now also ‘table stakes’. To stay aligned with client expectations, particularly those of a new generation of digital native investors, wealth managers should pursue a robust omnichannel strategy that both enhances the client experience and helps relationship managers better understand what clients want – and respond rapidly and appropriately.”
Other key findings in Capco’s Singapore survey report include:
Three-quarters (74%) of respondents say they manage at least part of their wealth themselves, while 31% use wealth managers and financial advisors.*
When using an investment or wealth management service remotely, the largest number of respondents (43%) prefer a hybrid model that combines digital self-service and human interaction.
Respondents use a wide range of resources to look for investment advice and ideas, particularly online research (69%).*
Respondents under 35 years of age are particularly open to changing their wealth or asset management provider.
Capco’s Singapore wealth management survey report can be found here.
Media contact
Hannah Polson, Cognito
capco@cognitomedia.com
About Capco
Capco, a Wipro company, is a global management and technology consultancy specializing in driving digital transformation in the financial services industry. Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.
*Multiple responses permitted
Capco’s new Singapore wealth management survey explores the attitudes of 500 Singaporeans with minimum investable assets of US$100,000 to reveal their growing use of digital channels, views on AI-guided wealth management, and adoption of robo-advisory services.
READ FULL REPORT HERE