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Explore the latest trends and actionable insights on the Retail Banking and Lending market to inform business strategy and pinpoint opportunities and risks.

Retail Savings and Investments in APAC Continues to Grow Despite Uncertain Economic Environment

Industry: Retail Banking and Lending
Current: Market Sizing & Shares

In 2021, the Asia-Pacific (APAC) region had 143.4 million affluent population - individuals with more than $50,001 in onshore liquid assets. This is nearly 5% of the adult population in region. It has almost doubled in the last decade, increasing from 81.6 million people in 2011
Affluent population held 86.8% of the region’s onshore liquid assets, while emerging affluent and mass market segments collectively accounted for the remaining 13.2%
Retail investors allocated 69.2% of their liquid assets in deposits while equities remain second with 19.5% share in 2021

The affluent segment in the APAC region remained resilient throughout the COVID-19 pandemic, growing by 5.3% in 2021 to reach 143.4 million. With economies recovering from the pandemic, this segment is expected to record an average annual growth rate of 4.8% between 2022 and 2026 to reach 181.5 million.

As per GlobalData's Asia Pacific Wealth Management: Market Sizing and Opportunities to 2026 report, APAC’s affluent individuals held 86.8% of the region’s total onshore liquid assets in 2021. Between 2016 and 2021, liquid wealth held by the affluent investors recorded a CAGR of 8.3%, reflecting the positive performance of asset classes such as deposits and equities.

COVID-19 had an unprecedented impact on the APAC economy, pushing the region into a recession with GDP declining by 1.5% in 2020. However, most of the economies in the region saw a significant recovery in the second half of 2020 due to the easing of lockdown restrictions, rebound in domestic consumption, and increase in exports.

Despite the uncertain economic environment, retail savings and investment in the region grew by 8.8% in 2021 to reach $48.6 trillion.

APAC retail savings and investments market will record a CAGR of just over 7% over 2022–26, which is relatively moderate considering the region’s historical growth. Rising inflation, Russia-Ukraine conflict and associated supply bottlenecks and rising energy prices, the possibility of new COVID-19 variants, a slowdown in the Chinese economy, and tightening financial conditions would pose challenge for faster growth over the forecast period.

In APAC, retail investors allocated 69.2% of their liquid assets to deposits as investors preferred to hold their majority wealth in safe assets such as deposits over riskier asset classes during the COVID-19 crisis. Equities is second with 19.5% of total retail savings and investments in 2021, followed by mutual funds and bonds with 8.8% and 2.5% respectively.

Access the full report: Asia Pacific Wealth Management: Market Sizing and Opportunities to 2026

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