Insights

Wealth Management Opportunities Among Millennials

Written by additiv,
Published on March 21, 2022

Infobank Interview with Pieter Zylstra, APAC General Manager at additiv and Victor Wongsonegoro, APAC Sales Lead at additiv

Increasing digitalization has driven changes in people’s needs, one of which is the need for wealth management services. Infobank spoke to Pieter Zylstra, APAC General Manager and Victor Wongsonegoro, APAC Sales Lead at additiv, a WealthTech provider who seeks to seize this opportunity for its customers, particularly those that target millennials.

So, with such a large number of young Indonesians today, what are the opportunities for additiv to target them? What are the company’s future strategies to enter the Indonesian financial market? Pieter and Victor explained to Infobank.

How does additiv view the need for wealth management products for Indonesian millennials?

additiv estimates that in 2021 alone, Indonesia already had around 700,000 new young investors who have opened investment accounts domestically. KSEI reports, that these young investors – working professionals under the age of 40 – make up 80% of the total stock investors in the country; a significant growth in the mass-affluent segment.

That is why Indonesia is one of our main markets in APAC. These figures also show the enormous dynamics in wealth management in Indonesia. Players in the wealth management sector, both traditional and new, are competing to launch digital wealth management services to capture this emerging market segment.

What is additiv’s role in developing the wealth management sector in Indonesia?

Most of our partners struggle to update existing systems to meet changing customer needs. Several partners, such as consumer platforms, banks and insurance companies, want to launch wealth management services, without the need to invest in in-house technology. With a modern architecture based on APIs and microservices, additiv enables financial institutions to tailor customer needs across various distribution channels, especially tailored to millennials.

For example, additiv has been active in Indonesia since 2019 when PT Bank Commonwealth launched its SmartWealth product to the market, which is supported by additiv DFS®. As one of the pioneers in wealth management in Indonesia, Commonwealth continues to grow strongly. Over the past 6 months, they have doubled their wealth management consumer base through their SmartWealth products.

This shows that Indonesian consumers are interested in adopting digital wealth management solutions, rather than visiting branches. This trend has intensified since the start of the COVID19 pandemic, and we are engaging with several banks in Indonesia to launch new financial and wealth management services.

What are the next steps for additiv to strengthen its business in Indonesia?

additiv is a global provider of digital wealth management technology. We are currently working with existing system integration partners such as IKON, Synpulse, and others to promote the wealth management offer in the Indonesian market. Insurance companies, digital/neo-banking banks, and consumer platforms have expressed interest in launching digital wealth management services and we are heading there.

additiv will soon announce another new project with a leading bank in Indonesia that will specifically target the mass-affluent segment in wealth. Following a growing customer base, we are preparing to establish a local office in Jakarta to expand our sales and support activities in the second half of 2022.

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