Asian wealth managers are cautious about digital assets, even though demand is rising.
(Reuters) – SingaporeAccording to an industry survey released on Monday by consulting firm Accenture (NYSE:ACN), wealth managers in Asia aren’t offering digital assets to investors even though demand is rising. This is because they don’t understand what these assets are.
Since a few years ago, global banks have been slowly moving into crypto, with some adding it to their already-running businesses and others starting new ones.
“At the moment, 52 percent of wealthy investors in Asia own some kind of digital asset. Accenture’s research shows that by the end of 2022, this number could reach 73% on Monday, Accenture said.
“Digital assets make up 7% of investors’ portfolios, which makes them the fifth-largest asset class in Asia. This is more than they put into foreign currencies, commodities, or collectibles, which makes them the fourth-largest asset class in Asia. But two-thirds of wealth management firms have no plans to offer digital assets, “Accenture said.
Accenture’s report on the future of the wealth management industry in Asia included these results. The report was based on two surveys: one of about 3,200 investors and the other of more than 500 financial advisors at wealth management firms in Asia. The polls were taken in December 2021 and January 2022.
Accenture said that digital assets are a $54 billion revenue opportunity for wealth management firms, but that most of them are ignoring it.
“Firms don’t act because they don’t believe in (or understand) digital assets, have a “wait and see” attitude, or choose to focus on other projects because launching a digital asset proposition is hard,” the report said.
The biggest bank in Southeast Asia, DBS Group (OTC:DBSDY), launched a separate cryptocurrency trading platform in December 2020. This platform allows corporate investors and accredited investors to trade a wide range of digital assets.
Nomura Holdings (NYSE:NMR) said last month that it will start a digital asset company this year. This will allow institutional investors to trade products related to cryptocurrencies and other things.
