Financial sector headlines are often dominated by banks and insurers. Insurance companies, for instance, have reported significant growth in business segments serving China’s growing middle class and high-net worth individuals. One of the beneficiaries is AIA Group. “To build a sustainable business model, the company (AIA) trains young agents to sell higher quality products. Their focus on rewards and recognition attracts more high-calibre candidates, while improving the brand in the eyes of customers,” says investment analyst Patricio Ciarfaglia.
Financial exchanges are another area that have emerged as steady growers and dividend payers. In Asia, exchanges are at the centre of public financial markets that are expanding, providing a tailwind of secular growth. Russia has also experienced similar growth in recent times as retail investors flock to stock trading platforms in search of higher returns.
On the banking front, larger private banks in India have been growing profits and gaining market share. They are well-positioned to scoop up some of the country’s weaker lenders.
For instance, HDFC Bank and Kotak Mahindra Bank are leveraging technology, amid the digitalisation of India’s economy, to make faster lending decisions and reach customers in rural areas through mobile apps.
View full report here
