Web Analytics

SEARCH BY FILTER



Is This The Biggest Opportunity For Corporate & Fiduciary Services Providers In The Past 10 Years?

Find out how China Offshore can introduce you to new intermediaries for your project or services.

 


 

 

By Matthew Sumner

 

I didn’t see this coming.

When one of our staff uncovered this opportunity, I was in absolute disbelief.

In hindsight, I feel a bit dumb for not realizing the potential or seeing it first.

What we found was a gold mine, and it was hiding in plain sight the whole time.

To understand how this opportunity came to be, I have to give you a bit of background which will illustrate exactly why this opportunity exists.

I believe it’s the most important opportunity for Corporate & Fiduciary Service providers over the past 10 years.

As described in my email, these companies have been in business for several decades and were the largest accelerator of the private wealth movement overseas.

They typically have between 1000-6000 HNWI clients but have almost no resources to help their clients set up overseas companies, fiduciary structures, or bank accounts.

They have been preoccupied with their highly profitable main business, which could earn them between 40,000 USD - 120,000 USD per client!

That all changed in 2018 when the Chinese government deregulated this industry for the first time.

This means that they lost their monopoly.

When a rush of new competition comes in (supply increase), the first thing that happens is price drops.

So, before they were making USD 40,000- USD120,000 per client, and suddenly competing companies were offering the same service at 25-50% of the price! You can imagine the panic.

This is the first major blow that this industry would take in a short 3-4 year period of time.

They quickly began to shift into what they called the “Multi-Family Office” business model, offering not only their core service but also wealth management, insurance, domestic and international tax planning, etc.

They were calling themselves “Multi-Family Offices” but they couldn’t get away from the “drug” of the high-value one-off sale which they needed to sustain their operating costs.

This meant that instead of operating in the best interest of the client as a family office should, they began selling other high commission products like insurance, securities, etc.

Next, comes along COVID-19.

With borders closed indefinitely, the prospects of true immigration have been damaged.

Many clients, while they will likely still immigrate, have put their plans temporarily on hold.

This is the second blow this industry has taken in the past 3-4 years.

This highly profitable industry is the Immigration Industry.

As a corporate & fiduciary services provider, you don’t need to know about the immigration industry in order to capture this opportunity.

But, what you do need to understand is why now more than ever these companies with 1,000-6000 HNWI clients need you!

You might be wondering, how are immigration companies going to sell corporate & fiduciary services to their clients? If they’re used to 40k-120k sales, why would they do this?

The answer is simple.

Survival.

Secondly, they already have a client base.

These HNWI clients relied on them to safely immigrate their families, provide access to a better lifestyle and better education.

Psychologically, they are in the perfect position to help their clients set up overseas companies and fiduciary structures.

Why?

Because their clients have a deep level of trust in them.

The immigration companies helped their clients in the single most important decision the family had made about the family’s future.

Now, they want to capitalize on this trust to cross-sell other necessary services such as corporate and fiduciary services, bank account opening services, etc.

We know this because they have been coming to China Offshore in droves, asking for suppliers to help them.

We’ve been working tirelessly to connect our existing clients to them, but we need more!

There is simply too much demand, and not enough suitable providers to help.

Want to know how to generate new sales from the China market?

Click here to book a call with me.