Almost one third of the world’s high net worth individuals will be based in the Asia Pacific region - 2 per cent more than in the US and 6 per cent more than in Europe - by the end of 2011, highlighting why the Asian region is a hotspot for wealth managers, according to a survey by Booz & Company, the consultants.

However, although the figures explain the flurry of interest by Western banks to do business in Asia, firms must adapt their operational models to new global financial rules and client expectations, the study, entitled Private Banking After The Perfect Storm, said.

Nearly 3.6 million of the global HNW individuals are expected to live in the Asia Pacific region, up from 2.6 million in 2008, the study said.

The study, which carried out 140 in-depth interviews with senior private bankers around the world, also concludes that for the next few years emerging markets will lead the industrialised world in returning to pre-crisis growth rates.

Despite private banks’ resilience during the financial crisis, clients are now much more cautious, the survey found.

“Since March 2009 clients have kept cash levels high while reducing amounts in other asset classes,” the report said.

Client expectations will put the integrated private banking model itself under the microscope, according to the report. This observation comes at a time when big losses at UBS, and the recent scandal at Goldman Sachs, have cast a spotlight on whether it makes sense to operate private banking in close proximity to investment banking, or as a stand-alone operation.

“Today there is some mistrust towards integrated players that do not maintain a fully transparent approach to product portfolio management. In response, some institutions have already taken steps to separate their asset management business from their distribution arms, and others are likely to follow,” the report said.

Almost 90 per cent of respondents say that there is already a trend toward true open product architecture – where clients are offered the best financial products from top suppliers in every asset class.