- According to World Wide Fund for Nature Singapore (WWF-Singapore), Asia’s wealth management revenue has a projected total of $90bn by 2025.
- WWF-Singapore states that 49% of young high net-worth individuals (HNWIs) are interested in making sustainable investments.
- Private banks are hoping to attract climate conscious HNWIs by introducing greener investment strategies.
According to WWF-Singapore, Asia’s wealth management revenue is expected to hit $90bn by 2025, with private banking and green investment options in the region expected to grow substantially in the coming years.
According to a pilot study by the independent conservation organisation WWF-Singapore, young HNWIs desire improved sustainability and an increased focus on climate change.
WWF-Singapore’s study, released on 5 June, indicates that 49% of HNWIs under 40 are interested in sustainable investments, and identifies a need for private banks to tailor their sustainability commitments to better reflect the reality of private banking.
The study was conducted from October 2022 to February 2023, and involved seven private banks located in Singapore with headquarters in the US, Europe and Asia.
Private banks can attract HNWIs by setting measurable targets and devoting more attention to climate and nature-related risks. Banks are preparing for the upcoming $84tn wealth transition by 2045.
HNWIs wishing to participate in the growth of Asia’s wealth management revenue and private banking will need to make international payments which will enable HNWIs who use private banks to move capital quickly and securely between countries.
The study concluded that private banks had committed to integrating sustainability into their investing operations. International HNWIs must use a safe money transfer method to protect their investments.
WWF-Singapore states that many private banks have implemented oversight committees to attract climate-conscious HNWIs.
The organisation suggests that private banks can avoid regulatory and reputational risk by incorporating environmental, social and governance (ESG) assessments and scenario analysis into their processes.
The WWF-SG Sustainable Private Banking and Wealth Management (SPRING) framework has emphasised the importance of ESG factors, which can help private banks determine their customers’ risk levels and investment choices.
HNWIs looking to use new private banking firms to ensure safe investments in a greener future can use our online money transfer comparison tool to find efficient and secure ways of transferring money domestically and internationally.
