Many wealth managers in Asia are currently holding back from offering digital assets to the investors despite growing demand because of a lack of understanding of the assets, according to an industry survey by Accenture consulting firm published on June 6.
Global banks have been carefully moving into crypto for many years, some of them building it within their existing operations while others setting up new businesses.
Accenture said in its publication:
“Currently, 52 percent of affluent investors in Asia hold digital assets of some sort. Accenture’s research indicates this could reach 73 percent by the end of 2022. Digital assets represent 7% of surveyed investors’ portfolios — making it the fifth-largest asset class in Asia — more than they allocate to foreign currencies, commodities, or collectibles. Yet two-thirds of wealth management firms have no plans to offer digital assets.”
These findings were a portion of Accenture’s report on the future of Asia’s wealth management sector based on two surveys; one of about 3,200 investors while the other of over 500 financial advisors at different wealth management companies in Asia. These surveys were done in December 2021 and January 2022. Accenture added:
“For wealth management firms, digital assets are a $54 billion revenue opportunity – which most are ignoring. Among firms’ barriers to action are a lack of belief in (and understanding of) digital assets, a wait-and-see mindset, and – given that launching a digital asset proposition is operationally complex – choosing to prioritize other initiatives.”
Southeast Asia’s largest bank DBS Group unveiled a standalone crypto trading platform in December 2021 providing corporate investors and accredited investors with crypto trading services for most digital assets.
In May 2022, Nomura Holdings stated that it will develop a digital asset firm this year enabling institutional investors to trade products that are linked to cryptos, among others.
