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Get to Know “WeathTech”, another noteworthy FinTech, via China’s financial development strategy

DIGITAL VENTURES August 21, 2018 5:59 PM


Startups are the main players that have altered China’s financial industry from services like peer-to-peer (P2P) lending that is expanding so rapidly that it has completely disrupted the conventional lending process. Aside from B2C FinTech, “WealthTech” is also a prominent FinTech that may disrupt the global financial industry. Let us get to know “WealthTech” via case studies from China’s financial development plan.

Get to know Wealth Management, High Net Worth Individuals (HNWIs), and Mass Affluent – How are they influencing the nation’s economy?

Wealth Management  

  • It is a financial service for highly wealthy customers. It provides consultation and asset management that will best benefit the customer. For instance, they may suggest investments in different forms instead of a savings account. This is a solution for wealthy customers who are burdened with responsibilities and lack the time to efficiently manage their assets.


High Net Worth Individuals (HNWIs)

  • They are investors with a high amount of investible assets. Excluding the residence, the assets should be more than 1 million USD (around 33 million THB). The number of people who are High Net Worth Individuals is an indicator of the wealth of a nation and the country’s economic potential.


Mass Affluent

  • These are the groups that are university graduates with high income and purchasing power who have savings and continue to invest. They are the new generation of investors who prioritize value. This group is enthusiastic, ambitious, and have the urge to be more successful. They are greatly proud of their success and this pride is a core element that drives the country’s economy, both in the potential and sustainable expansion. Also, it contributes to the development of FinTech and new types of financial services. As this group is rapidly increasing, banks and financial institutions are spotlighting them. They seek to create new products and services to attract the Mass Affluent.

The HNWIs and Mass Affluent have one thing in common. That is the need to use technology for asset management and prefer online services such as for mobile banking, asset management, and online stocks market information. This also includes managing their portfolio via online services. PWC reports that 89% of Asia Pacific’s highly wealthy group use more than 3 digital devices while 91% use the internet and application via smartphones on a daily basis.

Credit: iStock


China sees potential in Wealth Management: Adjusting the focus from HNWIs to the Mass Affluent.

  • Owing to the massive population and continuous economic growth, naturally, China is among the countries that have the most HNWIs in the world. Yet, it is worth noting that banks in China are turning their focus to the Mass Affluent. This is because the Mass Affluent has increased in number and is the fastest growing group in Asia. It is estimated that, by 2020, their assets will amount to a total of 43.3 trillion USD which accounts for 20% of the Wealth Management business in Asia. This has become a prime opportunity for financial institutions to seek solutions for the Mass Affluent and development “WealthTech” to support the sector.




Robo-Advisor – WealthTech: An assistant welcomed by the Mass Affluent.

  • Robo-Advisors are intelligent systems that utilize AI or Big Data for wealth management. It has been vastly developed to attract the Mass Affluent. The Robo-advisory technology provides advice and offers online investments analysis, thus, users can easily understand complicated investment information. Moreover, they are capable of precisely matching investments schemes and customers risk preference as well as managing customer’s portfolio with efficiency and speed.

It is forecasted by Statista that the number of Chinese users using Robo-Advisor to manage investments shall increase up to 80 million users in 2020. This amount is 40-folds higher than in 2016 when there were only 2 million users.

Despite Wealth Management’s lack of fancy features when compared to other financial services, we believe that the Deep Tech behind it such as AI or Big Data can create new forms of WealthTech both in China and abroad. This is so users can gain better experiences in the near future. Follow Digital Ventures for more updates.


The WealthTech Book: The FinTech Handbook for Investors, Entrepreneurs, and Finance Visionaries by Susanne Chishti