With 1.2 Million HNW Expats, Wealth Managers Must Offer Tailored Products
global high-net-worth (HNW) expat market expanding from one million individuals
in 2014 to 1.2 million individuals in 2017, wealth managers will have to offer
tailored products to customers to succeed in this rapidly growing but fiercely
the company’s latest report, ‘Seizing the Global HNW Expat Opportunity’, 65% of
wealth managers target HNW expats. Admittedly, a larger proportion of wealth
mangers target professionals and entrepreneurs (81% and 85%, respectively), but
these segments make for a much larger market.
den Hövel, Wealth Management Analyst at Publisher, says: “The sheer size of the
global HNW expat market represents a significant opportunity for wealth
managers to target these mobile, affluent customers with tailored products.
However, adopting a differentiated strategy is becoming increasingly important
as competition is on the rise.
is fierce in key expat hubs such as Hong Kong, Singapore and the UAE. For
example, more than half of the HNW residents in the UAE are expats, and it will
be hard pressed to find a wealth manager who does not employ a dedicated expat
team in the UAE.”
11% of the global HNW expat population (more than 131,000), HNW expats from
India represent a particularly lucrative target market. Similarly, migrants
from China can be found all over the world, justifying a global targeting
As a result,
wealth managers have been eager to differentiate themselves from the
competition by focusing on particular segments of the market. Many providers
have developed dedicated offerings aimed at particular diasporas, such as
Chinese or Indian HNW expats.
smaller players will struggle to compete in that space, given that all the big
brands operate dedicated non-resident Indian or China desks, allocating
significant resources to appeal to these segments.
Hövel concludes: “Smaller or domestically-focused players should consider
adopting a more niche business model focused on smaller diasporas or less
competitive markets, such as Canada. While expats only constitute 5.6% of the
local HNW population in the country, this still equates to just over 10,800
individuals – not the largest of markets, but one that is not as hotly
are big business, but it’s becoming more important to stand out from the crowd
as competition picks up. Going after the biggest slice of the pie may not
necessarily be the best strategy for everyone; a more targeted approach focused
on niche segments can go a long way.”