Global figures from the 20th edition of the Capgemini World Wealth Report show that in 2015 high net worth individual wealth saw only a modest growth of 4 per cent. However, wealth in Asia-Pacific grew by 10 per cent, propelling Asia-Pacific into the lead position as the region with the most HNWI wealth globally.
This is the first time that Asia-Pacific is ahead of North America for both HNWI wealth and population. In 2015, Asia-Pacific held USD17.4 trillion in wealth with a 5.1 million HNWI population in comparison to North America’s USD16.6 trillion in HNWI wealth and 4.8 million in population.
Global HNWI wealth reached USD58.7 trillion and the HNWI population grew at 4.9 per cent to be 15.4 million in 2015. Since 1996, global HNWI wealth growth has expanded by four times equalling nearly USD59 trillion, and if current modest growth rates hold, wealth is projected to reach USD100 trillion in 2025. Despite these record wealth levels, the report also found that only one-third (32 per cent) of global HNWI wealth is currently being managed by individual wealth managers, representing a challenge and an opportunity for firms to consolidate assets.
“It is remarkable that only one-third of HNWI wealth is currently with wealth management firms which shows how great the growth potential is for firms that can combine digital technology and FinTech capabilities with human expertise and relationships, to reflect state-of-the-art services for clients,” says Anirban Bose, Head of Banking and Capital Markets, Capgemini’s Financial Services Business Unit. “Those firms that can offer a digitally-integrated customer experience that builds on high levels of trust and confidence in firms and captures the characteristics of speed, flexibility and ease of use will be well positioned to become leading firms of the future.”
Asia-Pacific has been a driving force, doubling HNWI wealth and population over the decade. Asia-Pacific’s HNWI wealth grew by 10 per cent in 2015 which is almost five times North America’s 2 per cent wealth growth in 2015 decelerating substantially from 2014’s 9 per cent growth rate.
Using a more aggressive growth projection, if markets in Asia-Pacific continue to grow at its 2006 to 2015 rate, Asia-Pacific will represent two-fifths of the world’s HNWI wealth in ten years, more than that of Europe, Latin America, and Middle East and Africa combined. The report found that Japan and China stand out as regional dynamos, driving almost 60 per cent of global HNWI population growth in 2015.
Asia-Pacific’s HNWI population growth of 9 per cent in 2015 also far outpaced that of North America (2 per cent), and was nearly double that of Europe (5 per cent). Latin America was impaired by the poor performance of Brazil, which lost momentum in both HNWI population (-8 per cent) and wealth (-6 per cent). Dampened by Latin America, ultra-HNWI wealth, long a driver of overall HNWI wealth did not provide its usual boost in 2015, the report says. Excluding Latin America, however, ultra-HNWI wealth grew more than the other wealth segments, both in 2015 and for annualised growth over 2010 to 2014.
