BANK­ING 2027

The Peak (Hong Kong) - - Editor's Note - RYAN SWIFT As­so­ciate Pub­lisher and Chief Ed­i­tor

In this is­sue of Peak Wealth, we take a look at some of the big trends af­fect­ing pri­vate bank­ing and wealth man­age­ment, and what that might mean a decade from now.

Some trends are fa­mil­iar. Ni­cola Chur­chouse con­sid­ers what ef­fect that high-fly­ing world of fin­tech will have on the much more dis­crete and closed off world of fam­ily of­fices. Oth­ers are less ob­vi­ous but cer­tainly star­tling. Richard Lord takes an in-depth look at the grow­ing world of alldig­i­tal banks. They can be found in China, where large tech play­ers are keen to move fur­ther into fi­nance, as well as emerg­ing mar­kets like Viet­nam, where small play­ers are hav­ing an out­sized im­pact.

Of course, the world’s big­gest eco­nomic story is the rise of China. In all ar­eas of busi­ness ac­tiv­ity, China’s com­pa­nies have demon­strated nerve and am­bi­tion. But up un­til now, pri­vate bank­ing and wealth man­age­ment have largely been the pre­serve of Swiss, British and Amer­i­can banks. But as De­van­shi Bhat­na­gar finds, China’s banks are keen to add this busi­ness to their ros­ter of ser­vices, both as China’s own wealth de­vel­ops, and as a way to reach out to the larger world. By 2027, could we see Euro­pean clients look­ing to Chi­nese pri­vate banks for wealth man­age­ment?

One of the big trends over the last eight or nine years has been the drive to open up so-called “tax havens” – le­gal ju­ris­dic­tions that al­lowed ex­treme dis­cre­tion in own­er­ship and tax struc­tures. Western gov­ern­ments, stung by the ef­fects of the global fi­nan­cial cri­sis and PR dis­as­ters like the Panama Pa­pers, un­der­took to open the books on such coun­tries with in­for­ma­tion shar­ing and re­port­ing stan­dards. So what does the fu­ture hold for the tax haven?

No dis­cus­sion about wealth can go on with­out look­ing at the ever-present is­sue of as­set al­lo­ca­tion. For some, it’s the coolest part of wealth man­age­ment. Nicky Bur­ridge talks to some in­vest­ment an­a­lysts and gets their views on where the smart money goes when con­sid­er­ing a ten-year in­vest­ment time­line. Tech­nol­ogy of course is im­por­tant, but on this time­line, so is de­mo­graph­ics.

Fi­nally, suc­ces­sion plan­ning is al­ways a big is­sue for fam­i­lies. Christy Choi tack­les this sub­ject from a new an­gle: what is the best type of job to groom a busi­ness suc­ces­sor? Nu­mer­ous third and fourth gen­er­a­tion kids are try­ing their hand at run­ning start-ups, rather than a stint in an in­vest­ment bank. Is it bet­ter? Christy gets to the heart of the mat­ter in dis­cus­sion with three vet­eran en­trepeneurs.

The twin trends of wealth cre­ation in new mar­kets and the on­set of dig­i­tal tech­nol­ogy make it harder than ever to peer into the fu­ture. And yet, it’s all the more im­por­tant to try.

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