India's high-net-worth individual population growth outpaces Asia-Pacific's in 2020

The growth in number of high-net-worth individuals (HNWIs) in India at 5.9 per cent in 2020 outpaced Asia-Pacific which registered 5.8 per cent growth, as per the 25th edition of World Wealth Report of CapGemini.
 
The number of HNWIs in India increased to 278 in 2020 from 263 in 2019, said the report which covered 71 markets, accounting for more than 98 per cent of global gross national income and 99 per cent of world stock market capitalisation, for HNWI market sizing.
 
Despite the pandemic, global HNWI population grew 6.3 per cent, surpassing the 20-million bar, on unprecedented stock market gains in 2020. HNWI wealth grew 7.6 per cent in 2020, nearly reaching $80 trillion.
 
"The ultra-HNWI segment led overall HNWI population and wealth growth at 9.6 per cent and 9.1 per cent, respectively, while millionaires next door and mid-tier millionaires had lower population and wealth growth at around 6 per cent and 8 per cent, respectively," CapGemini said.
 
The report defined HNWIs as those having investable assets of $1 million or more, excluding primary residence, collectibles, consumables, and consumer durables. Ultra-HNWIs are HNWIs with investable assets of $30 million or more, while millionaires next door are those with investable assets between $1 million and $5 million. Mid-tier millionaires are those with investable assets between $5 million and $30 million.
 
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North America recaptured the top spot in total HNWI population and wealth after five years of domination by Asia-Pacific by growing at 10.7 per cent and 11.9 per cent, respectively, in 2020. "Boosted by rising equity markets and government stimulus, North America surpassed Asia-Pacific to become the 2020 leader in both HNWI population and wealth," the report said.
 
China (13.5 per cent), Taiwan (9 per cent), Hong Kong (12.1 per cent) and South Korea (9.2 per cent) performed better in terms of HNWI wealth growth than the global average, as per the report.
 
It said HNWIs have become more involved in their investments over the last 25 years, and now seek more and broader advisory support. As tech players continue to enter the wealth management space, wealth management firms need to move toward technology-enabled advice and hyper-personalised business models.
 
Saying that online marketplace are already widely present in insurance where policyholders compare and buy products, the report said wealth management is likely to be the next frontier. "A nascent example is India-based Fisdom, a platform that provides access to multiple investment products, including mutual funds and insurance schemes," it said.
 
"The wealth management industry must push its frontiers to capture customer mindshare and best serve HNW clients accustomed to BigTech convenience and personalization," Capgemini's Financial Services Strategic Business Unit CEO and Group Executive Board Member Anirban Bose said.
 
Investing in technology and talent is critical for wealth management firms to maintain their market share, he added.

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