ASEAN Next-Generation Wealth Clients Move Beyond Parents’ Banks

ASEAN next-generation wealth clients are increasingly choosing financial institutions independently of their parents, creating a challenge for private banks seeking to retain assets through intergenerational wealth transfers.

A WealthSummit study of 1,049 clients across Southeast Asia found that 71% had their main banking relationship with a different institution from their parents.

Some 68% maintained relationships with at least three banks, reflecting demand for investment performance, transparent pricing and access to a broader range of products.

WealthSummit CEO Christoph Kunzle said banks and independent wealth managers could no longer assume that relationships with parents would ensure retention of the next generation’s assets.

Conducted from August to September, the research covered Generation X, Y and Z clients who have received or expect to receive transferred wealth.

The study said successful private banks will increasingly require borderless banking, consolidated wealth views, adviser continuity and AI-enabled efficiency combined with human judgement.