• Banks must boost operational efficiency and accelerate digital adoption, with a specific emphasis on addressing account opening delays.
• Banks must move beyond custody to offer value-added services, while EAMs navigating consolidation will need the right strategic partners and integration plans.
• Standardised data exchange is becoming essential, with standards like OpenWealth helping reduce friction, improve accuracy, and support future growth.

The external asset management (EAM) industry has experienced rapid expansion in APAC, especially in Singapore, where new firms and family offices have seen significant growth.

But growth has brought growing pains. As competition intensifies, client expectations evolve, and regulatory scrutiny increases, external asset managers (EAMs) and their banking partners must rethink how they operate and collaborate.

From onboarding friction to consolidation pressures and fragmented data, the next 12 to 18 months will challenge the industry to adapt or get left behind.

Top trends EAMs and private banks should be ready for

From onboarding delays to industry consolidation, here are the top five trends private banks and EAMs must act on to stay competitive in a rapidly evolving market:

1. Onboarding is now a competitive edge

Account opening remains one of the biggest pain points for EAMs, with rising frustration over long processing times at custody banks. Private banks looking to attract more EAMs must start by fixing account opening delays.

The absence of a consistently efficient account opening experience has made account opening into a potential differentiator for banks to pursue. And this isn’t about massive tech overhauls. Simple operational changes, like giving EAMs direct access to the case reviewer or adding self-check tools can significantly shorten onboarding times.

We’ve seen it firsthand. Synpulse recently worked with a private bank to cut its onboarding time by more than half before any major tech investment. The banks that get this right will improve their operational efficiency and gain a clear edge in this competitive EAM market.

2. Technology is not “an” option; it is the only option

Despite the industry’s rapid growth, many EAMs continue to rely heavily on spreadsheets and manual processes. Some reports suggest that up to 40% of EAMs and family offices in Singapore still use Excel to manage their business, limiting scalability, driving up costs, and hindering client service.

Technology is not just “an” option. It's the only viable path to scale. Automated tools to support portfolio management and compliance, coupled with AI-driven insights are now baseline capabilities for any EAM serious about scaling.

While some firms see tech adoption as too expensive or complex, this is quickly changing. Pre-packaged, scalable solutions reduce implementation hurdles, improve the speed of implementation and enable EAMs to focus more on clients and growth.

Those that delay digital transformation risk being left behind or becoming acquisition targets in the wave of consolidation already underway.

3. More banks, but similar offerings

The competitive landscape for EAMs is shifting, with new entrants like BNP Paribas and Deutsche Bank returning to the market. But while more banks are entering the space, meaningful differentiation remains elusive. Many EAMs now refer to these players simply as “custody banks,” reflecting how commoditised their offerings have become.

If every bank delivers the same custody and execution services, where’s the differentiation? EAMs are increasingly seeking value-added support in areas like wealth planning, tax advisory, and broader investment advice, which are services that banks have traditionally avoided.

Banks that focus on building a stronger value proposition now will be far better positioned for long-term success. Some are already making this shift, and according to EAMs, it’s clear who the leaders are. Others may find themselves stuck in a cycle of catching up rather than building a lasting competitive advantage if they don’t act fast.

4. EAM consolidation is inevitable

The EAM industry has seen significant growth in APAC in recent years. However, many firms, especially newer ones, are discovering how difficult it is to scale in this space, particularly with rising cost-to-serve pressures. Those that can’t grow efficiently will face a choice: buy or be bought.

As the market matures, more EAMs are evaluating strategic acquisition opportunities. But finding the right fit is crucial. Whether it’s complementary expertise, a shared client base, or similar operating models, cultural alignment is often the deciding factor.

And successful M&A isn’t just about the tech. It’s about integrating people, processes, and services to deliver value to the combined firm’s clients. EAMs that take a thoughtful, strategic approach, not just reacting to pressure, will be in the best position to scale sustainably.

Synpulse has experience helping EAMs identify the right partner, define deal terms, and navigate post-merger integration. The firms that start planning now will be ahead of the curve when consolidation accelerates.

5. Standardised data exchange is essential

Despite digital progress, data exchange between banks, EAMs, and wealthtech platforms remains highly fragmented. Legacy formats like FIX and CSV have created a lose-lose-lose scenario: banks must extract and send data in multiple formats, EAMs bear the cost of cleaning and reformatting it, and technology platforms are left bridging the gap.

That’s where OpenWealth comes in. Originally launched in Switzerland, it is now gaining traction in APAC. The OpenWealth Association, run by the industry, for the industry, has defined three standardised APIs covering custody data, trading, and account opening. These APIs enable seamless integration between portfolio management systems, bank order management and custody systems, and core banking platforms.

As chair of the Association, Synpulse is actively working to support the industry with adoption. To help banks accelerate implementation of the OpenWealth standards, we have developed pre-built adapters for major core banking systems, cutting implementation time from months to weeks.

Standardisation reduces operational friction, enhances accuracy, and boosts scalability. For an industry under pressure to increase efficiency and meet rising client expectations, it’s no longer optional.

What’s next for EAMs and private banks in APAC?

The EAM sector in APAC is evolving fast. To stay competitive, firms must embrace technology, streamline operations, and assess options for inorganic growth in order to scale. At the same time, banks looking to win more EAM business must address account opening delays, often the top decision factor for custody partners, and move beyond commoditised offerings.

Value-added services like wealth planning, tax advisory, and broader investment advice are becoming essential differentiators. Digital adoption is no longer optional. As integrated, cost-effective solutions become more accessible, firms must act decisively or risk losing ground to more agile competitors.

A wave of consolidation is on the horizon. With rising licensing hurdles and mounting cost pressures, smaller firms will be forced to scale, merge, or exit the market. The success of M&A strategies will hinge on cultural fit, integration planning, and a clear long-term vision.

Finally, standardised data exchange will be a critical enabler of future growth. Industry initiatives like OpenWealth, now gaining traction in APAC, offer a path to reduced friction, lower integration costs, and faster, more accurate connectivity across the ecosystem.

How Synpulse can help

Are these trends affecting your business? At Synpulse, we help EAMs and private banks navigate today’s challenges through tailored technology, operational enhancements, and strategic guidance, including support for post-merger integrations in the EAM space.

Contact us to explore how we can support your transformation in 2025 or to learn more about how adopting OpenWealth can help streamline your operations.

• Banks must boost operational efficiency and accelerate digital adoption, with a specific emphasis on addressing account opening delays.
• Banks must move beyond custody to offer value-added services, while EAMs navigating consolidation will need the right strategic partners and integration plans.
• Standardised data exchange is becoming essential, with standards like OpenWealth helping reduce friction, improve accuracy, and support future growth.

The external asset management (EAM) industry has experienced rapid expansion in APAC, especially in Singapore, where new firms and family offices have seen significant growth.

But growth has brought growing pains. As competition intensifies, client expectations evolve, and regulatory scrutiny increases, external asset managers (EAMs) and their banking partners must rethink how they operate and collaborate.

From onboarding friction to consolidation pressures and fragmented data, the next 12 to 18 months will challenge the industry to adapt or get left behind.

Top trends EAMs and private banks should be ready for

From onboarding delays to industry consolidation, here are the top five trends private banks and EAMs must act on to stay competitive in a rapidly evolving market:

1. Onboarding is now a competitive edge

Account opening remains one of the biggest pain points for EAMs, with rising frustration over long processing times at custody banks. Private banks looking to attract more EAMs must start by fixing account opening delays.

The absence of a consistently efficient account opening experience has made account opening into a potential differentiator for banks to pursue. And this isn’t about massive tech overhauls. Simple operational changes, like giving EAMs direct access to the case reviewer or adding self-check tools can significantly shorten onboarding times.

We’ve seen it firsthand. Synpulse recently worked with a private bank to cut its onboarding time by more than half before any major tech investment. The banks that get this right will improve their operational efficiency and gain a clear edge in this competitive EAM market.

2. Technology is not “an” option; it is the only option

Despite the industry’s rapid growth, many EAMs continue to rely heavily on spreadsheets and manual processes. Some reports suggest that up to 40% of EAMs and family offices in Singapore still use Excel to manage their business, limiting scalability, driving up costs, and hindering client service.

Technology is not just “an” option. It's the only viable path to scale. Automated tools to support portfolio management and compliance, coupled with AI-driven insights are now baseline capabilities for any EAM serious about scaling.

While some firms see tech adoption as too expensive or complex, this is quickly changing. Pre-packaged, scalable solutions reduce implementation hurdles, improve the speed of implementation and enable EAMs to focus more on clients and growth.

Those that delay digital transformation risk being left behind or becoming acquisition targets in the wave of consolidation already underway.

3. More banks, but similar offerings

The competitive landscape for EAMs is shifting, with new entrants like BNP Paribas and Deutsche Bank returning to the market. But while more banks are entering the space, meaningful differentiation remains elusive. Many EAMs now refer to these players simply as “custody banks,” reflecting how commoditised their offerings have become.

If every bank delivers the same custody and execution services, where’s the differentiation? EAMs are increasingly seeking value-added support in areas like wealth planning, tax advisory, and broader investment advice, which are services that banks have traditionally avoided.

Banks that focus on building a stronger value proposition now will be far better positioned for long-term success. Some are already making this shift, and according to EAMs, it’s clear who the leaders are. Others may find themselves stuck in a cycle of catching up rather than building a lasting competitive advantage if they don’t act fast.

4. EAM consolidation is inevitable

The EAM industry has seen significant growth in APAC in recent years. However, many firms, especially newer ones, are discovering how difficult it is to scale in this space, particularly with rising cost-to-serve pressures. Those that can’t grow efficiently will face a choice: buy or be bought.

As the market matures, more EAMs are evaluating strategic acquisition opportunities. But finding the right fit is crucial. Whether it’s complementary expertise, a shared client base, or similar operating models, cultural alignment is often the deciding factor.

And successful M&A isn’t just about the tech. It’s about integrating people, processes, and services to deliver value to the combined firm’s clients. EAMs that take a thoughtful, strategic approach, not just reacting to pressure, will be in the best position to scale sustainably.

Synpulse has experience helping EAMs identify the right partner, define deal terms, and navigate post-merger integration. The firms that start planning now will be ahead of the curve when consolidation accelerates.

5. Standardised data exchange is essential

Despite digital progress, data exchange between banks, EAMs, and wealthtech platforms remains highly fragmented. Legacy formats like FIX and CSV have created a lose-lose-lose scenario: banks must extract and send data in multiple formats, EAMs bear the cost of cleaning and reformatting it, and technology platforms are left bridging the gap.

That’s where OpenWealth comes in. Originally launched in Switzerland, it is now gaining traction in APAC. The OpenWealth Association, run by the industry, for the industry, has defined three standardised APIs covering custody data, trading, and account opening. These APIs enable seamless integration between portfolio management systems, bank order management and custody systems, and core banking platforms.

As chair of the Association, Synpulse is actively working to support the industry with adoption. To help banks accelerate implementation of the OpenWealth standards, we have developed pre-built adapters for major core banking systems, cutting implementation time from months to weeks.

Standardisation reduces operational friction, enhances accuracy, and boosts scalability. For an industry under pressure to increase efficiency and meet rising client expectations, it’s no longer optional.

What’s next for EAMs and private banks in APAC?

The EAM sector in APAC is evolving fast. To stay competitive, firms must embrace technology, streamline operations, and assess options for inorganic growth in order to scale. At the same time, banks looking to win more EAM business must address account opening delays, often the top decision factor for custody partners, and move beyond commoditised offerings.

Value-added services like wealth planning, tax advisory, and broader investment advice are becoming essential differentiators. Digital adoption is no longer optional. As integrated, cost-effective solutions become more accessible, firms must act decisively or risk losing ground to more agile competitors.

A wave of consolidation is on the horizon. With rising licensing hurdles and mounting cost pressures, smaller firms will be forced to scale, merge, or exit the market. The success of M&A strategies will hinge on cultural fit, integration planning, and a clear long-term vision.

Finally, standardised data exchange will be a critical enabler of future growth. Industry initiatives like OpenWealth, now gaining traction in APAC, offer a path to reduced friction, lower integration costs, and faster, more accurate connectivity across the ecosystem.

How Synpulse can help

Are these trends affecting your business? At Synpulse, we help EAMs and private banks navigate today’s challenges through tailored technology, operational enhancements, and strategic guidance, including support for post-merger integrations in the EAM space.

Contact us to explore how we can support your transformation in 2025 or to learn more about how adopting OpenWealth can help streamline your operations.