The consolidation in wealth management business across Asia has ratcheted up another couple of notches with news of the latest deal.

Despite numerous spurious or badly researched media reports that Liechtenstein's VP Bank was primed and ready to acquire the wealth units of Credit Industriel et Commercial in Singapore and Hong Kong, its fellow French institution Indoseuz Wealth Management (IWM), has stepped in to snap the business up.

Perhaps the message was lost in translation.

Going For Growth

IWM (formerly Crédit Agricole Private Banking), is by no means a major wealth management player in the Asia-Pacific region, it did not feature in the finews.asia Asian league table however it has set its stall out to grow its footprint in the region.

In January this year IWM calibrated its Asian leadership with the appointment of Pierre Masclet as Chief Executive Officer for wealth management activities in Asia and as Branch Manager of Indosuez Wealth Management (IWM) in Singapore. Masclet has 25 years of experience working in the group’s wealth management activities.

It has also been adding bankers to both its Singapore and Hong Kong business units.

 Asia Not So Easy

Without significant scale, opening, developing and then establishing a sustainable wealth management business across Asia has alluded many. Increased regulatory pressure, rising salaries and other fixed costs will ensure that consolidation in the Asian wealth sector will continue.

In recent times the Asian wealth units of ABN Amro, Coutts, Societe Generale Private Banking, Barclays Wealth, ANZ and National Australia Bank have all thrown in the towel. The now familiar name of Bank of Singapore was also born out of the Asian private wealth business of Dutch institution ING, the first domino to fall during the global financial crisis.

The Wealth Conundrum 

Swiss banks UBS and Credit Suisse along with Citi currently dominate the Asian wealth market. Banks from China are now also eating into the competition as they start to move to the offshore hubs on the back of the country's burgeoning wealth.

And only this week a Boston Consulting Group report supported all the indicators by confirming Asia to be the fastest growing and eventual home to the largest concentration of the world's wealth. So why do banks pack their bags and leave?

So Who's Next

As is the case after each acquisition in Asia the market turns its attention to see who will be the next institution along on the disposal conveyor belt. Recent reports have indicted that Royal Bank of Canada has put its Asian wealth management business under review, which could lead to its sale.

As they say, watch this space....