Banks embrace wealthtech as $2.95t domestic pool grows

Majority of investors accessed wealth management services through digital channels.

Singapore’s domestic wealth pool reached $2.95t (US$2.3t) in 2024, with financial institutions shifting towards digital solutions to address challenges in traditional wealth management, according to a joint report by Allfunds Asia and Quinlan & Associates. 

The study, based on input from senior wealth executives, found rising demand for more accessible and personalised digital services. 

In Singapore, 85% of investors accessed wealth management services through digital channels in the past two years. 

This is driven by dissatisfaction with traditional models, which suffer from high costs, low automation, and limited personalisation. In many cases, relationship managers serve hundreds or even thousands of clients, resulting in suboptimal service delivery.

"These pain points are increasingly driving investors toward digital wealth management solutions," said David Perez De Albeniz, head of Asia at Allfunds. "Whilst face-to-face interactions remain important, investors in Hong Kong and Singapore have significantly increased their use of digital channels over the past two years."

The rise of digital-native competitors such as robo-advisors and neobrokers is adding pressure on traditional firms to keep pace. 

Benjamin Quinlan, CEO and Managing Partner of Quinlan & Associates, noted: “Digital-native disruptors are showcasing remarkable growth, driven by the strong service propositions relative to more traditional peers.”

Compared to Hong Kong, financial institutions in Singapore show a stronger preference for in-house development of WealthTech capabilities—21% in Singapore versus 19% in Hong Kong. 

Institutions relying on a mix of in-house and outsourced solutions were found to have higher maturity in digital adoption. 

Whilst outsourcing remains common for support functions, Singapore firms favour retaining core wealth capabilities internally. 

Both markets are expected to benefit from rising personal investable assets across Asia, particularly from China, which is forecast to reach $132.05t (US$103t) by 2033.