Japan’s wealth managers face a problem for the ages
Local banks believe that reinventing wealth management will supply them with domestic growth in a dismal macro environment. But the challenge is that the bulk of assets are held by elderly people, who aren’t used to investment, aren’t used to paying for it and don’t care much about digital innovation.
Wealth management in Japan is a totally different story to anywhere else in the world. In most of Asia it is about rising youth, an emerging middle class and the technology required to serve them.
In Japan, it’s nothing like that.
Daiwa president and chief executive Seiji Nakata shows Euromoney a chart revealing the segmentation of the wealth in Daiwa’s retail business by age. Today, the biggest five-year group in terms of wealth is aged between 70 and 74 – the Baby-boom generation.