This is now an inflection point for foreign asset managers as China vows to allow foreign players to take controlling stakes and operate domestically in the private securities fund management (PFM) and even mutual fund management markets.
Despite the global economic and regional political uncertainty leading to a cautious approach towards M&As, the financial services sector in Southeast Asia’s (SEA) developing markets has seen buoyant activity.
Investment banking in Asia has been affected by weak earnings forecasts in the profits of targets (thus resulting in fewer large deals), increased capital adequacy regulation from regulators (so less liquidity they can put into deals which results in a reduced risk appetite for deals) and the general weak macro economy.
By focusing on operational excellence, a path to creating value for their customers, banks could build customer loyalty, increase earnings while reducing fees charged to recover transaction costs.
If you look out the window of the banking industry, you will quickly realize that banks are focused more in creating wealth for their employees and shareholders and perhaps not working hard for creating value for their customers.
Asia Pacific has overtaken North America for the first time as the region with the highest number of high net worth individuals (HNWI), 3.37 million in 2011, according to the latest World Wealth Report, jointly published by RBC Wealth Management and Capgemini, and this figure is set on an upward trend.