Asian high net-worth clients are considering relocating their entire families in a pandemic-linked move that will alarm private banks in the region.
The finding comes from an annual study of 620 high net-worth individuals in Asia by Lombard Odier. Although few investors have relocated since the beginning of the Covid-19 crisis, many are considering it: 41% of Singapore-based respondents, 34% of Thailand’s, 32% of those in the Philippines and 29% in Hong Kong.
“The main question this raises is the following: as a bank, how will you retain a client if he or she relocates to another country, market or jurisdiction?” asks the accompanying report, 'The certainty deficit'. “Will you be able to retain this client? What if a third of a bank’s client base relocated? This would imply a significant impact on business.
The idea of relocation is part of a broader trend for high net-worth families to consider bigger things beyond immediate investment horizons during the pandemic.
Across eight surveyed markets in Asia, 60% of respondents said the crisis had led to them rethinking some family-related matters, such as succession and location.
“What’s coming out of this study is that it is a time to reflect,” says Vincent Magnenat, limited partner and chief executive officer for Asia at Lombard Odier.
