Key Takeaways:
- Crypto demand is on rising among investors in Asia.
- Primary wealth managers are not able to trust the volatile market and are not offering digital assets currently.
The crypto market is currently following a downward trend and the market volatility is scaring away consumers. A report published by Accenture reveals a recent clash happening between investors and their wealth managers in South Asia as both have opposing views in terms of investing in crypto.
The report named, “The Future of Asia Wealth Management” includes data collected from surveys of investors and financial advisors at wealth management firms in Asia. It shows that more than half of investors are dissatisfied with their wealth manager, even though a fair share reported successfully meeting or even exceeding their goals last year.
The report also shows that wealth managers are hesitating to allow investors from investing in digital assets like virtual currencies, tokenized assets, and crypto investment funds. However, more than half of investors in Asia have already heavily invested in these assets, and it is expected that more than 21% will be investing by the end of this year.
The demand for crypto assets is so high among investors in Asia that it accounts for 7% of investors’ portfolios who were a part of the survey. It is also recognized as the fifth largest asset class in Asia. Despite the promising numbers, almost two-thirds of the wealth management firms have not yet planned to offer virtual assets.
Accenture’s Capital Markets industry group lead for Growth Markets, Nicole Bodack, said, “To reimagine the client experience and differentiate themselves in key areas, including digital assets and ESG, wealth managers will need to find a balance in their advisory offerings between effective human relationship-management and smart, automated systems that can generate insights for clients and financial advisors”
He further added that firms can do a ‘trial and error’ with digital assets by focusing on a ‘minimum viable product’ theory while creating or advancing their internal digital assets capability.
According to the report, the reasons for reluctance may vary. Some firms may be waiting to have a better understanding of the market, some may not be a believer in this group of assets, and a few may find the technology and its mechanism complex.
The Head of Strategy and Business Operations APAC, Sacha Walker, said, “We would need to be able to provide an informed view on key crypto coins, which requires specialized research capabilities. In addition, we are currently exploring a compliant offering for suitable clients. This entails educating and training both relationship managers and clients on the risks, suitability, and mechanics of digital assets.”
