Asian wealth managers wary of digital assets despite rising demand
Wealth managers in Asia are holding back from offering digital assets to investors despite increasing demand due to a lack of understanding of these assets, according to an industry survey published by consulting firm Accenture on Monday.
Global banks have been moving cautiously into crypto for several years now, some building it within existing operations and others setting up new businesses.
“Currently, 52 percent of affluent investors in Asia hold some kind of digital asset. Accenture’s research indicates this could reach 73 percent by the end of 2022,” Accenture said on Monday.
“Digital assets represent 7 percent of the portfolios of investors surveyed – making it the fifth largest asset class in Asia – they allocate to foreign currencies, commodities or collectibles. Yet two-thirds of wealth management firms own There are no plans to offer digital assets,” Accenture said.
The findings were part of Accenture’s report on the future of Asia’s wealth management industry based on two surveys – one of nearly 3,200 investors and one of more than 500 financial advisors at wealth management firms in Asia. The surveys were conducted in December 2021 and January 2022.
“For wealth management firms, digital assets are a $54 billion revenue opportunity – which most are ignoring,” Accenture said.
“Barriers to firms in action are a lack of trust (and understanding) in digital assets, a wait-and-see mentality, and – given that launching a digital asset proposition is operationally complex – prioritizing other initiatives. choose to give,” it said.
South East Asia’s largest bank DBS Group launched a standalone cryptocurrency trading platform in December 2020, providing crypto trading services for a range of digital assets to corporate investors and accredited investors.
Last month, Nomura Holdings said it would create a digital asset company this year that would allow institutional investors to trade crypto-related products.