2021 年 3 月 3 日

 

Non-bankable assets

Investing in a new era

The next generation of wealth management is driven by integrating cutting-edge technology to ensure a seamless experience for investors, especially when incorporating non-bankable assets alongside traditional investments. By establishing access to liquid markets for these assets, wealth managers can significantly enhance their advisory services and push the boundaries of what they offer to clients.

Non-bankable assets, such as real estate, private equity, classic cars, or other rare collectibles, account for almost one-third of global private wealth. Despite their significant investment opportunities, these assets often come with high entry barriers for investors.

Our comprehensive report provides valuable insights on how banks and wealth managers can overcome these barriers and effectively integrate non-bankable assets into their offering.

Key stats

  • 30%

    of global personal wealth consists of non-bankable assets

    Source: Accenture, 2020

  • USD 24tr

    predicted value of the tokenized asset market by 2027

    Source: Finoa

Unlocking the potential of non-bankable assets

Before non-bankable assets can be included in wealth management at scale, several challenges must be addressed:

  • Valuation and risk assessment: accurately valuing non-bankable assets and assessing their potential risk and return for seamless inclusion in a traditional portfolio
  • Accessibility and liquidity: making non-bankable assets accessible and creating liquid markets
  • Tokenization: deciding whether to invest in tokenized non-bankable assets and developing a suitable platform for this new business model

Setting up the right foundations is crucial. This involves preparing wealth management platforms to include cryptocurrencies and tokenized assets, and enabling token issuance. Having a token issuance platform and access to secondary markets is essential. Wealth managers and banks can then develop tokenization business models that align with their existing strengths and expertise, paving the way for innovative investment opportunities.

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“The tokenization of non-bankable assets provides a unique opportunity for financial institutions and wealth managers to expand their assets under management and advice offering.”

Dr. Nils Bulling, Head of Digital Assets Product Domain, Avaloq

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