China and India are regarded as presenting the greatest wealth management opportunities in Asia. However, because the private banking market in both countries is still in its early stages, companies face several challenges.
China
The mainland has the second-largest number of high-net-worth individuals in Asia-Pacific, after Japan. However, according to Andrew Tung, Citi Private Bank's managing director and global market manager for China, despite the brisk growth of high-net-worth individuals there, only a few understand what private banking can offer because the sector is still in its infancy.
The mainland market is also regulated and limited in possibilities for service range and products. According to Anuj Khanna, managing director and head of private banking North Asia, Credit Suisse, the mainland is a priority market. And it is likely to increase in importance thanks to market liberalisation, which will allow international private banks to establish their businesses there, leading to greater demand for new investment opportunities.
Finding professionals appears to be a major issue facing private banks operating on the mainland. The main players are looking for people with the language skills and local knowledge who can then be trained to acquire the knowledge of financial markets and other wealth management skills.
India