Tech-driven wealth management gains momentum among young investors
The wealth management landscape in the Asia Pacific (Apac) region is undergoing a significant transformation, driven by a rising number of mass affluent investors and the intergenerational transfer of wealth. In particular, younger high net worth (HNW) and ultra high net worth (UHNW) individuals are increasingly turning to technology-driven wealth solutions, accelerating innovation across the sector.
According to a recent Singapore wealth management survey by consulting firm Capco, digital adoption among younger investors is surging. The survey found 76% of investors under 35 are comfortable with artificial intelligence (AI) playing a role in their wealth management decisions, compared with just 42% of those aged 45 and over. This shift highlights a growing reliance on technology for investment strategies and financial planning.
Beyond digital adoption, younger investors also exhibit greater willingness to switch wealth management providers. The survey revealed that 57% of investors under 35 are likely to change their provider in the next 12 months, compared with just 35% of older investors.
Laurens Koppelaar, Capco’s Singapore wealth management lead, told AsianInvestor: “The propensity to change wealth managers could increase further as technology lowers switching costs and leads to a faster rate of competitive innovation.”
One of the key challenges for younger investors, however, is identifying the right wealth manager or advisor. Just over one-third (37%) of respondents under 35 cited this as the biggest barrier to accessing personal wealth management services.
As wealth managers adapt their operating models to cater to the next generation, they must consider shifting preferences in service delivery and engagement. Digital channels have become a necessity rather than an option. Capco’s report found that 91% of younger investors have increased their use of digital platforms over the past two years, compared with 75% of those aged 45 and over.
Despite this digital shift, in-person consultations remain relevant. Thirty-seven percent of younger investors still prefer face-to-face meetings with wealth managers, though this figure is notably lower than the 49% recorded among older investors.
Koppelaar emphasised the need for wealth managers to offer compelling product offerings, seamless multi-channel service delivery and strong brand positioning to attract and retain younger clients. “With digital becoming table stakes, wealth managers must work harder to build trust and engagement with the next generation of investors,” he said.
As wealth transitions across generations, wealth managers that successfully integrate technology with personalised service stand to benefit the most from the evolving investment landscape in APAC.