| We see the Filipino wealth management and private banking market go through a transition phase, which presents a variety of challenges and opportunities for wealth managers. The industry has not yet seen a fundamental transformation toward a client-centric business model and still appears to be in a sales oriented phase. At the same time, we are seeing major banks and mid size banks commoditizing their wealth management products especially in investment offerings. The top banks in the country must continue to build trust with their clients and develop a deeper and personal understanding of their changing needs. |  |
The main questions that Filipino banks will have to ask to make the change from a sales oriented to a customer centric business model are the following:
The client’s relationship with the wealth manager is changing dramatically in the Philippines. The next generation of wealth is becoming more important; they are younger, more technical savvy, and understand what they want in more depth. There is a growing trend toward segmenting wealth across providers as client loyalty fades due to intense competition in the playing field. Demand in the market for comprehensive advice, financial and non-financial, is rising, and it must add real value and build a strong and personal relationship with the client.
Filipino client’s needs are changing in terms of solutions. Their focus on absolute returns is fading as they turn their attention to real returns (Returns after inflation and taxes resulting from an investment in tangible assets, it is not about absolute performance). We are seeing a rise in additional services such as services related to heritage and estate planning. Flexibility is gaining importance in HNWI and UHNWI lives as their situations become more stable and as they seek to preserve and grow their growth. We believe that the Philippines new generation of HNWI will choose a wealth manager based on his personalized services and understanding of his needs, and their trust between each other. And most importantly, wealth managers will need to know how their clients perceive them and exactly where they are adding value.
- How can we ensure that we understand our client? Can we predict their behavior? Do I know exactly what they want?
- How can we adapt to an ever demanding heterogeneous customer behavior and their more complicated needs?
- How can we respond to an ever-growing client heterogeneity without completely changing our business model.
The client’s relationship with the wealth manager is changing dramatically in the Philippines. The next generation of wealth is becoming more important; they are younger, more technical savvy, and understand what they want in more depth. There is a growing trend toward segmenting wealth across providers as client loyalty fades due to intense competition in the playing field. Demand in the market for comprehensive advice, financial and non-financial, is rising, and it must add real value and build a strong and personal relationship with the client.
Filipino client’s needs are changing in terms of solutions. Their focus on absolute returns is fading as they turn their attention to real returns (Returns after inflation and taxes resulting from an investment in tangible assets, it is not about absolute performance). We are seeing a rise in additional services such as services related to heritage and estate planning. Flexibility is gaining importance in HNWI and UHNWI lives as their situations become more stable and as they seek to preserve and grow their growth. We believe that the Philippines new generation of HNWI will choose a wealth manager based on his personalized services and understanding of his needs, and their trust between each other. And most importantly, wealth managers will need to know how their clients perceive them and exactly where they are adding value.
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