Banks tipped to build more capacity for staff on financial advisory for investment customers
Kevin Moore, the Director of Global Business Development at the Chartered Institute for Securities and Investment (CISI).
What you need to know:
- Assets under management in Kenya hit Sh134.7 billion, depicting a growth rate of 24.5 per cent.
- Kenya dollar millionaires rose to 3,362 last year on the back of young entrepreneurs making fortunes.
The wealth management industry looking after the money of retail to high-net-worth individuals needs to rethink its business models if firms are to survive an increasingly demanding environment, experts now say.
According to Kevin Moore, the Director of Global Business Development at the Chartered Institute for Securities and Investment (CISI), revamping capacity for the financial advisors and wealth managers to equip them with appropriate skill and expertise will be crucial going forward.
This, he says, will enable financial advisors or wealth managers to fulfill their fiduciary duty to their clients and foster confidence and further growth of the industry.
"There is clearly a growing need for additional human capital with the requisite skill and expertise sufficient to manage assets appropriately and offer suitable financial advice across the retail to ultra-high-net-worth customers," says Mr Moore.
Investment opportunities
According to Paul Njoki, the chief executive of Standard Chartered Investment Services Ltd, the wealth management industry is set for growth over the foreseeable future, and it is imperative that Banks and other Asset management institutions build their expertise toward taking advantage of the opportunities that lie ahead.
His comments have been echoed by Paulette Nandwa-Asura, the Head of Retail Wealth Management at NCBA Group.
Nandwa-Asura notes that within the Wealth Management and Premium Banking space the "right human capital is necessary if an institution is to be able to develop and foster enduring partnerships, visionary insights, source for appropriate investment opportunities and take advantage of emerging opportunities."
Assets under management in Kenya hit Sh134.7 billion, depicting a growth rate of 24.5 per cent between the end of 2018 and end of 2021, official statistics show.
Capacity building
As part of efforts to boost the capacity for staff in the financial services sector, the Chartered Institute for Securities and Investment (CISI) says it has scaled up qualifications and membership opportunities designed to boost knowledge, expertise and global best practice in the area.
In line with this, the institute held a capacity building forum in Nairobi last month.
Kenya dollar millionaires rose to 3,362 last year on the back of young entrepreneurs making fortunes in sectors such as ICT and business recovery from the Covid-19 economic fallout.
A recent Knight Frank Wealth report showed the number of Kenyans with a net worth of at least $1 million (Sh119 million) grew by 39 last year from 3,323 in 2020 and is expected to hit 4,274 by 2026.
