Targeting business owners in Asia Pacific Wealth Management

Datamonitor
December 17, 2004
40 Pages - Pub ID: DFMN1076765

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Countries covered: Asia, Oceania

Targeting business owners in Asia Pacific Wealth Management

Introduction
This report examines the opportunities for wealth managers looking to attract the owners of small and medium sized businesses. Research by Datamonitor has shown that corporate banks in Australia, Hong Kong, Singapore and South Korea are under-serving their SME clients. This report asks whether this opens up an opportunity that wealth managers can grab.

Scope
Looks at the financial needs of businesses and their owners and examines ways in which wealth managers and business banking teams can work together.
Sizes the SME and HNW markets in Australia, Hong Kong, Singapore and South Korea.
Provides action points for wealth managers and SME banks looking to attract and retain businesses and their owners.
Highlights
There is an enormous opportunity in the market. Not only for wealth managers to take on the role of advisor to the business owner, but for SME banks to take an initiative and ramp up their value-added services and advisory capability.

By comparison with the number of SMEs, the HNW market is small. For example, South Korea the largest SME market of the four countries in this study is home to 2.9 million small and medium sized enterprises.

In the market there are very few targeted offerings from wealth managers to business owners and this gap can be exploited by proactive players. If SME banks, private banks and wealth managers target niches now then they have time to build up a reputation their chosen segments and will be well placed when this type of servicing becomes the norm.

Reasons to Purchase
Find out how big the markets are and what your potential share is or could be
Find out how big the gaps are and what the opportunities for growth will be going forward
Find out who is competing in the markets, what they are doing well and what innovative players are doing in overseas markets to attract these clients

TABLE OF CONTENTS
INTRODUCTION 8
Who is the target reader? 8
Research methodology 8
WHY TARGET BUSINESS OWNERS? 10
Financial needs 11
Personal versus business needs 12
The transition process 15
Market Size 17
Number of companies 17
Outstanding deposits and loans 18
Other targets 20
MEANS OF ATTRACTION 21
Internal referrals 21
Westpac 22
Sand Aire 22
Partnerships and JV’s 23
Product or service pushes 24
National Australia Bank 24
RBS Mentor Services 24
Coutts Asset Reserve 25
Fiducian 26
Sponsorship 27
St.George 28
SICCI-DBS 28
Community ties 29
BankWest 29
ACTION POINTS 31
Step lightly on each others toes 31
Fostering referral 31
Valuable visibility 32
Pertinent partnerships 32
Offering value-add 32
Proactively seeking clients 33
Business relations 33
APPENDIX 34
Data 34
The Global Wealth Model 35
The UK sub model 35
Asia-Pacific sub model 35
Forecasting methodology 35
Datamonitor’s wealth numbers compared with others’ numbers 36
Datamonitor’s SME Model 37
Bespoke Wealth Market Sizing 38
Further reading 39
Wealth Management in Asia-Pacific SPP: Reports 39
Wealth Management in Asia-Pacific SPP: Insight Reports 39
Wealth Management in Asia-Pacific SPP: Competitor Tracking 39
Datamonitor Financial Services Consulting 40
Asia-Pacific contacts 40

LIST OF TABLES
Table 1: Number of SMEs and HNWIs in Australia, Hong Kong, Singapore and South Korea, 2003 34
Table 2: Total SME deposits and loans outstanding in Australia, Hong Kong, Singapore and South Korea, 2003 34
Table 3: HNW liquid assets in Australia, Hong Kong, Singapore and South Korea, 2003 34
Table 4: Wealth markets that have been modeled using the Global Wealth Model 38

LIST OF FIGURES
Figure 1: Methodology diagram and report structure 9
Figure 2: A client can with multiple relationships with the bank which could cause problems of internal conflict between business units and cause problems for the client 12
Figure 3: There are many more SMEs than HNW individuals in Australia, Hong Kong, Singapore and South Korea 18
Figure 3: Loans outstanding to SMEs consistently amount to more than two thirds of deposits, indicating that not all SME owners would be appropriate targets to wealth managers 19

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