SINGAPORE – UBS, the largest private bank in the world, has moved to dispel a common assumption that younger heirs are eager to switch bankers once they inherit their wealth, arguing instead that most prefer continuity, not disruption.
In its first dedicated global report on next-generation wealth holders, the Swiss bank found that a majority of heirs value advisory relationships established by the older generation.
The report showed 51 per cent of respondents indicated a preference to continue working with either the same wealth manager as their parents or another adviser within the same institution.
The finding challenges a long-held industry belief that younger clients will overhaul their parents’ banking arrangements as an estimated US$83 trillion (S$105.28 trillion) in private wealth is set to change hands over the next two to three decades.
The wealth transfer is already reshaping not just investment strategies, but also family dynamics and longstanding advisory models.
Globally, about 33 per cent of families are already in the process of transferring wealth, while another 25 per cent are actively planning for it or preparing with advisers.
The numbers are higher in the Asia-Pacific, with more than 40 per cent of families in the process of transferring wealth or planning with advisers.
The study also showed that wealth succession in the Asia-Pacific is often tied to family milestones such as the death of a family member. This is in contrast to Europe and North America, where it is more closely associated with a shift in responsibility.
That perception evolves across generations: About 40 per cent of second- and third-generation respondents view succession as a responsibility shift, rising to 50 per cent among fourth- and fifth-generation families.
Ms Young Jin Yee, co-head of UBS Global Wealth Management Asia-Pacific, said the findings highlight both continuity and change in how wealth is managed.
“These next generations of Asia-Pacific wealth holders place a much stronger reliance on professional advice than their global peers, with about 72 per cent looking first to their wealth managers and family offices for guidance on succession,” Ms Young said.
Expectations of advisers are evolving. While experience and expertise remain the top priority, 78 per cent cited access to global networks as the key differentiator when choosing their wealth manager.
“They want to step out of their markets and regions into the global space. That’s where global networks and connectivity become pretty important for them as a need to be served,” said Ms Young, adding that the younger heirs are also social media natives who hanker for speed.
The report also suggests that succession is less about a single transfer event and more about a gradual transfer of responsibility.
In 35 per cent of cases, families begin planning when the next generation takes on a larger role in the family business.
In 60 per cent of cases, discussions are typically initiated by the current wealth holders, though many heirs believe conversations should start earlier, with over half advocating engagement during the teenage years or even childhood.
Investment preferences are also shifting, though not as dramatically as sometimes portrayed. Traditional assets such as stocks and bonds remain dominant, with 79 per cent of respondents invested in them.
Interest in sustainable and impact investing is rising and particularly strong among younger and female respondents. Nearly half of the respondents are either already invested or seeking exposure.
By contrast, only 11 per cent of active investors reported holdings in cryptocurrencies, suggesting that digital assets remain a niche allocation.
UBS next-generation lead Conrad Huber, head of global wealth management for Indonesia and Japan International, said the bank has been engaging with younger clients through events, training nearly 2,000 individuals across more than 75 countries over the past two decades.
Its programmes, including the Leadership Excellence and Development Series in Singapore, aim to prepare younger wealth holders for financial leadership roles, while its sponsorship of the Young Investors Organisation – a global initiative led by the next-generation clients – connects over 2,000 members globally.
As the wealth transfer accelerates, the bank’s findings point to a more nuanced reality where the young heirs, rather than breaking from the past, are choosing to build on existing relationships, redefining priorities around global connectivity, sustainability and structured succession planning.
“In the past, it used to be a taboo to talk about succession in Asia, particularly because of our culture. But today, more of our clients are a little bit more open. They like to approach it much earlier and in a more structured and professional manner,” Ms Young said.
