SINGAPORE: UBS, the largest private bank in the world, has moved to dispel a common assumption that younger heirs are eager to switch bankers once they inherit their wealth, arguing instead that most prefer continuity, not disruption.
In its first dedicated global report on next-generation wealth holders, the Swiss bank found that a majority of heirs value advisory relationships established by the older generation.
The report showed 51% of respondents indicated a preference to continue working with either the same wealth manager as their parents or another adviser within the same institution.
The finding challenges a long-held industry belief that younger clients will overhaul their parents’ banking arrangements as an estimated US$83 trillion (S$105.28 trillion) in private wealth is set to change hands over the next two to three decades.
Wealth transfer is reshaping not just investment strategies, but also family dynamics and longstanding advisory models.
Globally, about 33% of families are already in the process of transferring wealth, while another 25% are actively planning for it or preparing with advisers.
The numbers are higher in the Asia Pacific, with more than 40% of families in the process of transferring wealth or planning with advisers.
The study also showed that wealth succession in the Asia Pacific is often tied to family milestones such as the death of a family member.
This is in contrast to Europe and North America, where it is more closely associated with a shift in responsibility.
That perception evolves across generations: About 40% of second- and third-generation respondents view succession as a responsibility shift, rising to 50% among fourth- and fifth-generation families.
Young Jin Yee, co-head of UBS Global Wealth Management Asia Pacific, said the findings highlight both continuity and change in how wealth is managed.
“These next generations of Asia-Pacific wealth holders place a much stronger reliance on professional advice than their global peers, with about 72% looking first to their wealth managers and family offices for guidance on succession,” Young said.
Expectations of advisers are evolving. While experience and expertise remain the top priority, 78% cited access to global networks as the key differentiator when choosing their wealth manager.
“They want to step out of their markets and regions into the global space. That is where global networks and connectivity become pretty important for them as a need to be served,” said Young, adding that investment preferences are also shifting.
The report suggests that succession is less about a single transfer event and more about a gradual transfer of responsibility.
In 35% of cases, families begin planning when the next generation takes on a larger role in the family business.
In 60% of cases, discussions are typically initiated by the current wealth holders, though many heirs believe conversations should start earlier, with over half advocating engagement during the teenage years or even childhood, though not as dramatically as sometimes portrayed.
Traditional assets such as stocks and bonds remain dominant, with 79% of respondents invested in them.
Interest in sustainable and impact investing is rising and particularly strong among younger and female respondents.
Only 11% of active investors reported holdings in cryptocurrencies, suggesting digital assets remain a niche allocation.
UBS next-generation lead Conrad Huber, head of global wealth management for Indonesia and Japan International, said the bank has been engaging with younger clients through events, training 2,000 individuals across more than 75 countries over the two decades. — New Straits Times/ANN
