In terms of population growth, the same survey estimated that the ranks of the wealthy swelled in 2003 by 30 per cent in Hong Kong and 22 per cent in India, compared with a paltry 7 per cent growth worldwide. In China, the number of high net worth individuals was estimated to have grown by 12 per cent to 236,000 people.

Such figures, however, may be underestimating personal wealth creation on the mainland. Initial public offerings of Chinese companies on Hong Kong and US stock markets in recent years and entrepreneurial success generated through external trade may have created more millionaires than the World Wealth Report estimates, according to some observers.

'It is difficult to get reliable statistics on the growth of different countries and regions. But given its economic growth rate and market liberalisation, the mainland is expected to be a major source of growth once the private banking market opens up,' said Shane Knowler, director, financial services practice, PricewaterhouseCoopers.

'Taiwan and Hong Kong are also expected to offer good opportunities for growth.'

HSBC Private Bank provided an indication of the success private banks are experiencing in the region when it recently reported its financial results.

Pretax profit for Asia Pacific excluding Hong Kong jumped 59 per cent last year compared with a 23 per cent increase for all its operations. The bank said Asia Pacific was 'by far the fastest growing region'.

Amid this rapid expansion, private banks have found it difficult to hire enough relationship managers to fill positions. This is because the region's pool of private banking talent has already been exhausted.

'The market is growing and private banks need to expand but they can't do that without experienced relationship managers,' Mr Knowler said.

'In view of the labour shortage, one thing that was consistent among the private banks we talked to in our last survey was that good people were hard to find.'

Some private banks are turning to management trainee programmes and grooming young associates for managerial roles. But Mr Knowler said this would not solve the immediate manpower shortage.

'It's a chicken and egg situation. Relationship managers need experience, credibility, depth of knowledge in a broad range of products and an established client base. Management trainees cannot walk into those roles at private banks,' he said.

To solve this problem, some private banks are looking outside their field to poach seasoned fund managers from the asset management industry.

Despite the market growth, competition for clients in Asia's private banking industry remains tough. Mr Knowler said Asia's private clients tended to focus more on price and performance than their western counterparts, creating intense competition for their wealth.

'The market in Asia is generally less relationship focused than in Europe. Private banking customers in Asia tend to be more focused on short-term returns and on fees. They also tend to spread their wealth over a larger number of bankers and perhaps shop around to get the best deal on any particular product,' he said.

Some private banks have responded to the competition by moving down the wealth spectrum to attract clients from below the high net worth bracket. There is anecdotal evidence that some are accepting clients willing to invest as little as US$500,000.