Leading the way in wealth management technology

For years, digital assets have offered an attractive alternative to traditional investments. A recent survey by Avaloq confirms that investors remain positive about digital assets, despite the recent crypto winter and the collapse of notable exchanges and crypto-native firms. Today, of the investors Avaloq surveyed in Germany, Switzerland and the UK, 42% say they invest in cryptocurrencies – 4 percentage points higher than in the previous year's study. This is supported by data from the European Union, which shows that the market capitalization of digital assets increased eightfold from 2020 to 2022.

In today’s digital world, embracing accessibility is not just about ticking legal checkboxes – it is the key to fostering inclusivity, empowering individuals with disabilities and providing equitable access to financial services for all. Online banking, as the gateway to economic empowerment, must be seamlessly navigable by all individuals. The EU Accessibility Act (EAA), introduced in 2019, amplifies this need, setting a deadline of 28 June 2025 for banks and wealth managers within the European Union (EU) and those serving EU-based clients to prioritize and implement accessibility measures.

The report shines a light on the fundamentals of investor behaviour across six markets in Europe and Asia. It is based on original research carried out by Avaloq in 2023. We conducted an online survey among 3,000 mass-affluent to ultra-high net worth individuals aged 18 and above in Germany, Switzerland, the UK, Hong Kong, Japan and Singapore to understand what motivates them, which investment methods they use, what their attitude to risk is, which types of investment they favour and which sources inform their investment decisions.

In recent years, Japan's wealth management industry has navigated significant changes, facing both unique challenges and unprecedented opportunities. In 2022, Japan's Prime Minister, Kishida Fumio, noted that over half of Japanese individuals' JPY 2,000 trillion (USD 14.4 trillion) financial assets are held in bank deposits and cash, resulting in slower asset growth compared to the US and UK. This situation presents both a missed opportunity and future potential.

Generative artificial intelligence (AI) has gained significant attention lately. The increasing number of creative AI solutions, including well-known ones like ChatGPT, demonstrates the growing awareness among the public regarding AI's potential to enhance productivity.

The financial assets of Japanese individuals total JPY 2,000 trillion, with over half of it held in cash. However, rising inflation and regulatory changes present opportunities for diversification and modern wealth management. With an aging population and wealth gradually shifting to the next generation, the time is ripe for financial institutions in Japan to embrace digitalization and tap into this potential.