SINGAPORE – Prudential Financial Advisers Singapore (PFA), set up in April 2023, aims to triple the number of its wealth managers from 500 to 1,500 by 2025, as it seeks to meet greater demand for wealth management, driven by factors such as rising longevity.
Prudential Singapore’s financial advisory arm hopes to be among the top three insurer-backed financial advisory firms in Singapore by 2027. Some of the larger players in the industry currently include Great Eastern Financial Advisers and Manulife Financial Advisers.
PFA chief executive officer Bernard Chai said many people focus on generating wealth to have the financial freedom to do what they like. Rising longevity and retirement planning are related concerns.
“As people live longer, they need to ensure that they do not outlive their savings and are well prepared for their long-term care expenses, retirement needs and rising healthcare costs. In 2022, the average life expectancy at birth for Singapore citizens and PRs (permanent residents) was 83 years.”
This will likely translate into demand for long-term protection of their assets and the financing of long-term care costs. In addition, longer lifespans mean that people are more likely to have chronic health conditions that require ongoing medical care. Coupled with rising costs of healthcare, this is expected to lead to increased demand for health insurance.
Rising affluence is yet another factor. Singapore has a growing number of well-off individuals seeking comprehensive financial planning and wealth management solutions.
The asset management industry here saw assets under management (AUM) rise from $3.3 trillion in 2017 to $5.4 trillion in 2021, based on Monetary Authority of Singapore figures.
PFA has an advantage in that it benefits from the Prudential brand name, strong market position, financial stability and operational efficiency for economies of scale, Mr Chai said.
The Prudential Group celebrated its 175th anniversary in 2023, while its Singapore office has been operating since 1931.
Since PFA was set up, its business has seen growth in clients and AUM. It expects to chalk up high double-digit year-on-year growth over the next three to five years.
Most of the current PFA customers are in their 30s and 40s, and as they advance in their careers and build their wealth, PFA aims to serve them as they move into the mass affluent segment and even possibly grow to be high-net-worth clients.
In 2024, Mr Chai aims to also increase the number of first-jobber clients. With many among the younger generation getting more financially sophisticated, wealth managers will need to be more skilled and knowledgeable to build up long-term relationships.
With a more in-depth understanding of customers’ needs, the wealth managers can advise clients at various stages of their lives.
PFA has a wide range of offerings that go beyond Prudential products. It works with more than 10 partners to offer products such as universal life products, which come with flexible premiums and death benefits, as well as life insurance products from other insurers. On the wealth front, PFA offers various savings and investment products.
In 2024, PFA will launch more retirement products that target more affluent customers. Relatedly, as PFA aims to attract more financial representatives, its wealth managers will undergo regular training.
For the younger customers, a user-friendly digital experience is important. PFA has been addressing this with attention being paid to digital point-of-sales portals, which generate detailed quotations and accept submissions of new proposals.
