East Meets West How Financial Advisers Can Connect with a Growing Asian American Market.

• Author: Geong, Mary M.
• Position: Personal financial planning

according to Credit Suisse's2018 Global Wealth Report, the United States has the highest share of the global wealth at $98 trillion. Financial advisers often look for new clients based on a person's occupation, location, age group or even marital status. However, financial advisers might consider steering their attention to an often underserved group: Asian Americans.

According to a 2016 report from Prudential Financial, this group has higher incomes and more assets than the general population, and fewer than 20 percent of Asian Americans have a financial adviser.

Asian Americans make up a fast-growing segment of the United States. 2014 Census Bureau data shows that they represented 6.6 percent of the population, up from 1.5 percent in 2000. During that time, their buying power grew 180 percent, faster than any other ethnic segment in the country.

While there is opportunity to serve this segment, they do have unique needs financial advisers should know. Along with similar challenges financial planners face when working with any market segment, such as skepticism, service and trust, they should be prepared to navigate cultural differences and communication barriers.

Family First

Taking care of family members is one of the top priorities among Asian Americans. Approximately one-third of Asian Americans identify themselves as caregivers for family members other than dependent children (e.g., spouse, parent, relative). Some 20 percent of Asian Americans provide financial assistance to their relatives, versus only 6 percent of the U.S. general population. While this data may be interpreted as a burden upon these individuals, filial piety is deeply rooted in Asian culture.

This practice of taking care of and being good to one's parents and other family elders shows respect, love, courtesy, support, reverence and loyalty. In addition to taking care of family members, other examples include younger family members giving part of their income to their parents to help out financially.

Financial security is of course one means to an end. However, Asian Americans do not view finances so simply. It's a means to pay homage, gratitude and respect to their parents before them, and to create the same opportunities for their children after them.

Buying a home is a top goal for 24 percent of Asian Americans, versus 17 percent of the general population. Additionally, it's common for families to have two or three generations living within the same household. In...