As in other regions that have witnessed similar economic performance, the Philippines are now home to a rapidly growing middle class, characterized, as elsewhere, by higher levels of disposable income. Not surprisingly, the luxury brands now on display in the malls of Makati were quick to capitalize on this new customer segment, however the wealth management industry, usually at the forefront of such changing demographics, seems to have been slow to respond.
Initially hampered by high barriers to entry, low levels of financial literacy and rapidly changing regulations, the wealth management industry now seems to be gaining traction in this frontier market but what opportunities exist? What are the hurdles that must be overcome and what are the threats to success?
In order to reduce costs and maximize potential revenues, banks will seek integrated platforms that can integrate quickly to other systems and deliver high levels of STP. They will also need mature front office and CRM functionality capable of enhancing the overall client experience, supporting both internal and third party digital applications and streamlining the overall advisory process.Eric Mellor, Wealth Management Specialist, APAC, Temenos