Lu International, a subsidiary of Chinese fintech Lufax Holding, and UK asset manager Schroders are partnering to launch a southeast Asian-focused digital wealth management service.
Lufax, an online wealth management company backed by China’s Ping An Insurance, will use its digital capabilities to co-develop with Schroders a set of multi-asset products and services for retail clients in Singapore and around the region.
The new Singapore-focused digital wealth management service, which includes thematic and sustainable investments, is expected to launch by the end of the year.
“We believe that digital wealth management will play a big role in the future of investing, given the growing demands of investors in the region, with their digital-led lifestyles,” said Lily Choh, country head at Schroders Singapore.
“We are very excited to be embarking on this journey with Lu International which is in the forefront of digital and technological developments, and [has] access to vast amounts of information at their fingertips.”
Joanna Tang, Lu International’s chief executive said: “We believe that investors in Southeast Asia, with its fast-rising middle class and digital natives, are currently underserved when it comes to a holistic digital investment experience.
“This strategic partnership builds on our long-term ambition to cater to the fast-growing needs of investors in the region.
“Our collaboration with Schroders is therefore two-fold: first to co-develop innovative tailored digital wealth solutions for our clients; then to work with our local and strategic partners in the region to expand the reach of these solutions.
“We believe that by partnering with an established, investment powerhouse like Schroders, we can significantly enhance our offerings for our clients, across segments.”
According to a KPMG report on digital wealth management in the Asia-Pacific region, Singapore is one of the top 10 locations with respect to the growing number of ultra-high-net-worth individuals (UHNWIs).
KPMG found that prior to the Covid-19 outbreak, there were 3,306 UHNWIs residing in Singapore in 2019. This figure is projected to grow by 29 per cent by 2024.
Since 2000, wealth per individual in Singapore has also increased 5.3 per cent, considerably higher than wealth growth rates in the rest of the Asia Pacific, according to the report.
“Singapore is the second most preferred place in the world for offshore wealth management. In 2018, total global offshore wealth stood at US$10.3 trillion, out of which Singapore accounted for about 11.7 per cent (US$1.2 trillion),” KPMG said in its report.