The affluent and mass-affluent segments in Asia, particularly in developing economies, are at a tipping point, creating a new market opportunity for banks and wealth managers.
The wealth pool of this group, defined as households with investable assets of $100,000 to $1 million, is projected to hit $4.7 trillion by 2026, up from $2.7 trillion in 2021, as incomes rise, according to a McKinsey analysis.
For banks and wealth managers, the potential incremental revenue from serving these clients will be $20 billion to $25 billion, contributing more than half of the industry’s revenue growth in Asia over the next three years.
Over a third of affluent customers in India have said they prefer a self-service digital platform for wealth management, with need-based human advice, McKinsey’s latest report, Digital and AI-enabled Wealth Management for Mass Affluent Customers in Asia, said. In addition, more than half of those who said they prefer a self-service digital platform already have relationship with at least one advisor, according to the survey of 2,400 respondents.
The survey results are significant considering that affluent and mass affluent segments in Asia, particularly in developing economies like India, are creating a new market opportunity for banks and wealth managers in the region.