How to capture the growing Asian wealth tier?
Find out at Retail Wealth Asia 2012!
The growth rate in Asia’s retail wealth sector has grown three times faster than European and North American markets resulting in Asia’s share of global wealth to increase from 12% in 2005 to 23% in 2015. With this significant increase in the Asian wealth tier, banks are rushing to capture market share and the competition is stiff.
Large multinational banks such as Citibank, Standard Chartered, and HSBC are facing tough competition with regional players such as DBS and UOB. How are these big players, regional and international planning to capture this growing wealth tier? According to the report Global Retail Banking – Key Trends for Retail Estate:
1. Retail banks increased focus on “multi-channel”; with banks focussed on getting the right physical presence in the right place, supplemented by mobile and internet banking services.
2. Increased customer segmentation; focussing efforts on which services to provide to whom, where and how.
3. Hi-tech experimental branches; with 24-hour access to call centre staff through video conferencing and other technological developments, and a move to mimicking customer-centric retail environments.
Banks can no longer conduct business with just a large branch network. According to James Brown, Head of EMEA Retail Research & Consulting – “50% of retail branches in these developed markets will be obsolete in their current format by 2020.” Furthermore, with internet and mobile platforms growing in importance, it seems like the use and requirement of physical branches is diminishing further. Banks are rightfully changing their game plan to a more customer focused strategy, but are they doing enough?
What else do you think banks can do to capture this growing wealth tier?