The crisis engulfing many of the US tech banks – Silicon Valley Bank (SVB), Silvergate, and Signature Bank, among others – has created a financial crisis that is significantly impacting the technology sector, which relies on these banks for financing, payroll, and other services, including wealth management. The ongoing bank run will hit the technology sector globally, with key markets where the tech sector plays a big role in generating HNW wealth suffering more than others, says GlobalData, a leading data and analytics company.

Nandita Shukla, Wealth Management Analyst at GlobalData, comments: “The US financial crisis will have repercussions for the wealth of HNW individuals globally. However, HNW investors with high shares of wealth linked to the technology sector will be impacted the most. Countries like Israel, Sweden, and India, along with the US, where technology has been a big driver of HNW wealth, will suffer outsized and negative impacts on their wealth markets going forward.”

As per GlobalData’s HNW Customer Demographics Analytics 2022, 12% of global HNW individuals have wealth linked to the technology sector, excluding those inheriting family wealth, and the regions with the highest share of such HNW individuals are North America and Asia-Pacific.

Shukla concludes: “The US banking crisis raises immediate concerns about the wealth associated with the technology sector and also demands a new engagement strategy for private bankers catering to clients in the sector around the world. The impact is global but specifically acute for the countries with high technology-linked investments.”