Understand "emerging affluents" to unlock Jersey's potential

Tuesday 30 October 2018

Understanding the "emerging affluents" should be a key priority for Jersey in order to capture new business opportunities abroad, a bank head has said.

The comments came from Standard Chartered's Head of Retail Banking, Tanmay Saha, following the publication of a new study by the bank.

It revealed that investing in financial products is the emerging affluent’s top strategy to meet their financial goals, with more than half, 56% using investments, compared to 43% who rely on salary and career progression.

The 'Emerging Affluent Study 2018 – Climbing the Prosperity Ladder' examined the views of 11,000 emerging affluent consumers – individuals who are earning enough to save and invest – from 11 markets across Asia, Africa and the Middle East.

Tanmay Saha, Head of Retail Banking, Standard Chartered Bank, Jersey, said: "Asia, Africa and the Middle East is expected to be the largest source of wealth creation over the next five to 10 years. Understanding the emerging affluent in these regions can help financial institutions in Jersey to capture opportunities and further cement the Island’s position in the financial landscape."

Pictured: Understanding the growing sector of new wealthy people across the world and their priorities should be a key priority for Jersey in order to cement its global standing.

The study revealed that the emerging affluents are currently using "more basic approaches" to achieve their top financial goals, savings accounts were the preferred method for 49% of those surveyed while 29% use time deposits followed by property investment, with less than a quarterusing real estate to increase their wealth.

52% of respondents felt far away from achieving their top financial goal. They recognised a lack of financial understanding and advice may be stopping them from meeting their financial goals; 42% said they feel held back in their aspirations by their lack of financial knowledge while 35% admitted that friends and family are their top source of financial advice.

The study also reveals that more than two-thirds (69%) of emerging affluent believe effective wealth management holds the key to greater social mobility, so addressing the financial knowledge and advice gap could play a crucial role in helping them to keep moving up the ladder.

 "It’s exciting to see that social mobility is booming among the emerging affluent, and that they are outstripping their parents’ success in education, careers and home ownership," Mr Saha said. "These aspiring consumers are determined to continue moving upwards, and know that investing can help them reach their financial goals.

 "Although they are eager to invest, the emerging affluent are being held back by a lack of in-depth financial knowledge and may not be aware of all the solutions available to them. Financial institutions can play a bigger role by educating consumers and providing a wide range of wealth management products to help them take their personal financial success to the next level."