Financial institutions are part of long-term economic progress across Asia, say Capital Group’s experts
From banks and insurers to stock exchanges, the financial sector is going from strength to strength in countries such as India, China, and Indonesia. Digitalisation and a growing middle class are some of the key factors driving change.
For example, equity portfolio manager Jody Jonsson expects emerging markets to lead the charge towards a cashless society as digital payments become increasingly common around the world.
"This is one area where emerging markets are ahead of the US," Jonsson says. "We've seen this trend for several years in developing countries where many consumers had no bank accounts but did have mobile phones and adopted mobile payment technology quickly."
Meanwhile, the middle class and number of high-net-worth individuals is burgeoning with, for example, China's 350-million-strong middle class forecast to hit 500 million by 2025. That's likely to be good news for a range of financial providers, including those insurance companies that can offer improved products and higher levels of service.
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