Over the past decade, particularly in Singapore, Chang has observed significant shifts, especially in service costs and digital adoption. He highlights the high cost of private banking services, accessible mainly to the wealthiest. The affluent segment has access to banking products but with limited bespoke advice, while the mass retail market previously had limited wealth management options, which have evolved significantly in recent years. 

Clients increasingly demand real-time information and communication through digital platforms. This shift is particularly noticeable among tech-savvy generations in the high-net-worth individual (HNWI) segment, while younger affluent clients expect digital communication and services.

He noted that the move to digital has lowered the frictional costs across the wealth management industry. Even first-time investors can access wealth management services with lower entry barriers. 

Chang said: “The cost dynamics in wealth management have shifted. With commoditised entry wealth services becoming cheaper and more readily available. Those that can provide a unique value proposition, like bespoke services or added value such as impact investing, will emerge as winners.”

Chang distinguishes between business-to-business (B2B) fintechs, which help traditional financial institutions offer digital services, and business-to-consumer (B2C) fintechs, including robo-advisors and digital wealth managers, which democratise access to wealth management. In the current environment fintech providers perform well but scaling and profitability remain a challenge. Trust building is essential, and partnering with established custodians can enhance credibility.

Saxo offers comprehensive capital market solutions through efficient, cost-effective digital channels, catering to a broad spectrum of partners by providing a utility-like service that encompasses various markets and asset classes. 

Chang also anticipates further integration of digital wealth management services into the broader banking sector, including insurance, loans, and tax advisory.