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Private banks in Asia risk upsetting their wealthy clientele if they continue to pretend that nobody cares about cryptocurrencies, the world’s most watched wealth survey shows.

A top private banker based in London recently appealed to foreign headquarters for advice on how to deal with client inquiries on cryptocurrencies – without success. Similar attempts in Asia also went unanswered.

Beijing-based Bankorus CEO Gregory Van den Bergh in a recent interview with finews.asia caught the shift in Asia saying, «Rich clients are about to diversify into digital asset classes previously unavailable to them such as cryptocurrencies.» 

The «World Wealth Report 2018» presented by Capgemini – the most important annual wealth report – contains a new chapter on crypto investments. What's important is that the authors identified a marked increase in interest for crypto products among rich investors.

Keen Young Clientele

One in three millionaires has a strong interest in the topic, according to the survey. The number of rich below the age of 40 who are keen on crypto investments number seven out of ten. It is this age group in Asia that is of particular interest for the private banking industry.

The problem for rich clients is to get information about new types of investments. Therefore, they are looking for help from their experts, but only one-third received any help about cryptocurrencies when they contacted their relationship manager.

Small Rivals Fill the Gap

This translates to a calamity, given the industry’s struggles to earn money through advice. But the top management of the banks seem quite content. Tidjane Thiam at Credit Suisse and Sergio Ermotti at UBS have been heard praising the potential of the blockchain. But bitcoin and others, which are based on the new technology, have been met by disregard at best. They are quite happy to let smaller rivals fill the gap, such as Falcon Private Bank, Bank Frick in Liechtenstein or fintech startups.