Mass Affluent Banking in Greater China – Regional Breakdown by Market Trends, Investment Preferences and Competitor Benchmarking

Mass Affluent Banking Market in Greater China Report Overview

Emerging affluents and mass affluents make up most of the affluent population in the Greater China region. The population of affluents has been exponential in the last decade in the region. However, the growth is expected to slow down in the upcoming years as the economies mature. Despite low growth, the number of mass affluent customers in the region is exceedingly large, offering a huge market to the financial providers looking to cater to this segment in Greater China. The mass affluents of Greater China are focused on savings and investments, and their financial goals are aligned towards the same to secure their financial future as the social security system in the region is still evolving. Additionally, most of the mass affluents in the region are high earners, with working-class individuals falling under the highest-earning band.

The ‘Mass Affluent Banking Market in Greater China’ report analyzes Greater China’s mass affluent market of China, Hong Kong (China SAR), and Taiwan. This includes overall mass affluent market size (number of individuals) and their distribution in the region. The report provides an analysis of the factors driving affluence and examines mass affluent individuals’ financial goals, banking patterns, investment preferences, and insurance preferences. The report also covers the region’s competitor benchmarking and case studies.

Mass Affluent Banking Market in Greater China – Key Drivers

The emergence of Greater China as a supply chain hub, coupled with technological advancements, has driven the wealth of mass affluent customers in the region. The region was strategically positioned to be the key player in the global supply chain industry. This has also led the wider Asia-Pacific region to become a crucial hub for trade and logistics. The emergence of new industries, technology, and e-commerce has created opportunities for entrepreneurship and well-salaried white-collar employment across the region, not just on the mainland but earlier in Taiwan and Hong Kong. For instance, Taiwan’s manufacturing transition from low-value to high-tech or Hong Kong’s transition to high-value has bolstered financial services. The economic progress has also played an important role in improving access to employment.

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Mass Affluent Banking Market in Greater China – Regional Breakdown

In Greater China, the mass affluent banking market can be regionally divided into China, Taiwan, and Hong Kong. China had the largest mass affluent population within the Greater China region primarily due to its huge population in 2023. The country also gained access to financial resources. Additionally, the highest growth within the region is expected from China in the coming years despite economic headwinds.

Mass Affluent Banking Market Analysis in Greater China by Region, 2023 (%)

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Mass Affluent Banking Market in Greater China – Banking Overview

A strong emphasis on financial security via secure means has attracted the mass affluents of Greater China towards deposits. Deposits are prominent among all mass affluents of Greater China as more than 50% save money through the asset class. Current accounts are more popular as most of the population in the region keeps their funds in this type of account. Deposits tend to be the traditional mode of savings and are significant due to the strong saving culture in Greater China, and they are highly preferred by all segments, including mass affluents. The mass affluent bank more frequently, often weekly via online channels, due to greater engagement with their finances. Health and motor insurance are highly preferred in Greater China. The key preferred channels mass affluent consumers use are banks & mutuals, digital wallets, neobanks, IFA or broker, and others. In 2023, banks superseded all other providers in Greater China as a preferred investment channel, but they are facing strong competition from digital wallets. Moreover, digital wallets are the most preferred channel in China for conducting investments.

Mass Affluent Banking Market Analysis in Greater China by Preferred Channel, 2023 (%)

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Mass Affluent Banking Market in Greater China – Investment Preferences Outlook

The key investment preferences of the mass affluent banking market are bonds, deposits, equity, ETFs, and mutual funds. The mass affluents of Greater China were most inclined towards equity investments in exchange for potentially higher returns over the long term in 2023. Mass affluents in Greater China have the highest preference for equities as they have a strong understanding of this asset class and recognize that equity has the potential to deliver higher returns compared to other investments. An expectation of better returns is the primary and most significant driver for investing in the offshore market in Greater China. Attractive growth stories or a history of returns will be the dominant considerations, just as they are with other investment decisions, and advisors should prepare accordingly.

Mass Affluent Banking Market Analysis in Greater China by Investment Preferences Outlook, 2023 (%)

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Mass Affluent Banking Market – Competitive Landscape

The big parastatal banks of the mass market have largely retained their leading market shares among the mainland’s mass affluent. In China, ICBC was the market leader within the Chinese market with a strong hold on the mass affluent segment too in 2023. China Construction Bank and Bank of China followed the lead among other banks for mass affluent consumers in China.

Mass Affluent Banking Market Analysis in China by Banks, 2023 (%)

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Scope

• China has the largest mass affluent population within the Greater China region primarily due to its huge population, which has also gained access to financial resources. Additionally, the highest growth within the region is expected from China in the coming years, despite economic headwinds

• The HNW individuals of the region are expected to grow at a more solid rate from 2023-27 than the mass affluents and the emerging affluents.

• The emerging affluent have always been the biggest shareholder among all the affluents of Greater China and will continue to maintain the same in the forecast years.

Key Highlights

• Make strategic decisions using top-level historical and forecast data on Greater China’s mass affluent banking industry.
• Identify the most promising client segment by analyzing the penetration of mass affluent individuals.
• Receive detailed insights into factors driving the interests of mass affluents.
• Understand competitive dynamics by learning about existing competitors in the Greater China region.

Reasons to Buy

• Make strategic decisions using top-level historical and forecast data on Greater China’s mass affluent banking industry.
• Identify the most promising client segment by analyzing the penetration of mass affluent individuals.
• Receive detailed insights into factors driving the interests of mass affluents.
• Understand competitive dynamics by learning about existing competitors in the Greater China region.