Download this Paper Open PDF in Browser

Does Financial Market Development Explain (or at Least Predict) the Demand for Wealth Management and Private Banking Services in Developing Markets?

100 Pages Posted: 26 Jan 2013  

Bryane Michael

University of Hong Kong Faculty of Law; University of Oxford

Christopher Andrew Hartwell

CASE - Center for Social and Economic Research; Department of International Management

Gary Ho

SQW-China Ltd

Date Written: January 25, 2013

Abstract

How should wealth managers and private bankers find and serve the wealthy – particularly in developing countries? Several banks and consulting firms provide market sizing estimates for the number of high net worth and ultra-high net worth individuals. However, it is still an open question whether financial management services actually create wealth (or increase the number of wealthy persons). How can financial advisors know if, on a macro-level, their service offerings grow their collective assets under management and increase their prospect numbers? In this paper, we find evidence that advanced wealth management and private banking services might help grow a wirehouse’s book of business in developed, but not developing, markets. If wealth management and private banking follow general trends affecting the broader financial sector, their business also grows wealth in less advanced economies. Such evidence sheds light on the currently ambiguous role that financial development seems to play in creating affluent, high net worth and ultra-high net worth individuals.

Keywords: wealth management, private banking, high net worth, wirehouse, HNWI

JEL Classification: D31, E01, E21, O10

Suggested Citation

Michael, Bryane and Hartwell, Christopher Andrew and Ho, Gary, Does Financial Market Development Explain (or at Least Predict) the Demand for Wealth Management and Private Banking Services in Developing Markets? (January 25, 2013). Available at SSRN: https://ssrn.com/abstract=2206800 or http://dx.doi.org/10.2139/ssrn.2206800

Bryane Michael (Contact Author)

University of Hong Kong Faculty of Law ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

HOME PAGE: http://web.hku.hk/~bmichael/

University of Oxford ( email )

South Parks Road
Oxford, Oxfordshire OX1 3QY
United Kingdom

HOME PAGE: http://users.ox.ac.uk/~scat1663/

Christopher Andrew Hartwell

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Department of International Management ( email )

ul. JagielloDska 57/59
Warsaw, 03-303
Poland

Gary Ho

SQW-China Ltd ( email )

12th Floor, Yue On Commercial Building
385-387 Lockhart Road, Wanchai
Hong Knog
China

Paper statistics

Downloads
270
Rank
94,137
Abstract Views
856