The market potential in the affluent and mass-affluent segments is not new. Leading wealth managers and banks have long recognized the opportunity, but several challenges prevented them from winning over these investors. One is the traditional high-cost servicing model, which is based on in-person meetings with relationship managers. In addition, many affluent and mass-affluent investors have been reluctant to pay advisory fees. They have generally preferred basic asset classes (such as cash and real estate) and have not seen the value in professional wealth management.

These challenges have started to ease in the past several years as technology has reduced costs for wealth advisors and increased access for their clients. In McKinsey’s latest Personal Financial Services Survey,1 approximately 80 percent of affluent and mass-affluent respondents in Asia say they would or might consider receiving advisory services remotely through digital channels (Exhibit 2). Moreover, 87 percent of investors in developed markets within Asia and 64 percent in developing markets say they are willing or may be willing to pay advisory fees.