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Wealth management in Asia: Navigating the impact of coronavirus

Wealth management in Asia: Navigating the impact of coronavirus

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To adequately respond to the COVID-19 pandemic, wealth-management firms can implement four measures.

SUMMARY

This research examines the measures implemented by wealth management firms to adequately respond to the COVID-19 pandemic.

According to this study, the main challenges that wealth management firms have to face during the coronavirus crisis are the following: market volatility, operational risk, and increased reliance on digital channels.

Weakening GDP growth, high volatility, and significant capital-market losses across the globe and in Asia, in particular —where markets experienced significant drops since early February - can have an impact on how wealth-management firms operate. The priority in the short term is to sustain confidence among investors and protect business through continued engagement and communication with the customers, the paper notes.

Regarding the increased operational risks concerning business continuity, employee safety, and client confidentiality, wealth management firms are expected to strengthen their business-continuity plans with other measures, the paper points out.

With measures imposed globally due to the coronavirus pandemic such as social distancing and travel restrictions, wealth management firms may find it hard to acquire new clients. However, these measures can create at the same time a chance to emphasize digital channels to carry on engagement between investors and advisers, the document highlights. This new business scenario presents new ways of working and embracing different cultures.

Wealth management companies must deploy best practices to address client concerns and reduce the impulse to panic, the paper points out.

OUTLINE

Financial market volatility

Increased operational risks

Increased reliance on digital channels

Actions for wealth-management firms

DETAILS

Overview

Researchfinder Rating
5 out of 5 stars
Title
Wealth management in Asia: Navigating the impact of coronavirus
Sub-Title
To adequately respond to the COVID-19 pandemic, wealth-management firms can implement four measures.
Region
Asia Pacific
Published
March 15, 2020
Publisher
McKinsey & Company
Author(s)
Jacob Dahl, Sushant Dhar, Fumiaki Katsuki, and Vishal Kaushik
Price
FREE
Language
ENGLISH

Content

Number of Pages
8
Number of Tables
0
Number of Exhibits
4
Topics
business-and-corona
Tags
asia-pacific, banking, corona, coronavirus, Covid-19, financial crisis, financial services, financial system, global, health, McKinsey, Wealth Management
Author(s)
Jacob Dahl, Sushant Dhar, Fumiaki Katsuki, and Vishal Kaushik
Methodology
Not available.

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