( CNN ) -- As regulations tighten in Europe and the world 's wealth moves to Asia , Singapore is tipped to overtake Switzerland to become the largest global offshore wealth center in terms of assets by 2020 , according to London research firm , WealthInsight . Although Switzerland easily retains its offshore banking crown with $ 2.8 trillion in assets under management , or 34 % of the global private banking industry , Singapore is now the world 's fastest growing market with $ 550 billion under management at the end of 2011 , up from just $ 50 billion in 2000 . With $ 450 billion belonging to offshore clients , Singapore has grown to become the fourth largest offshore banking center globally . The UK and Channel Islands is the world 's second largest hub with $ 1.8 trillion under management at the end of 2011 , followed by the Caribbean and Panama with $ 800 million . A loss of confidence among wealthy American and European investors in bank secrecy laws and independence in traditional banking hubs , combined with increasingly stringent banking regulations , are playing in Singapore 's favor , analysts say . `` A lot of the benefits of being in Switzerland have fallen away in terms of secrecy , therefore if you look at a convenient market , particularly for a wealthy Asian individual , Singapore fits the bill , '' said Chris Wheeler , a bank analyst with Mediobanca . `` It 's got a stable government , transparent legal system , a history of investment management , having English as the first language is really very helpful and therefore it 's the obvious place to go to . '' The increasing numbers of wealthy Chinese , Indians and Indonesians are helping fuel the shift to low-tax Asian centers , according to the report , with Hong Kong in a strong position to benefit from the Chinese government 's moves to free-up international trade in China 's yuan and the growing number of Chinese millionaires looking for a safe place to invest their money . European currency movements have also contributed to the shift , with the value of the Swiss Franc rising more than 20 % against the U.S. dollar last year due to ongoing concerns over Europe 's debt crisis . `` The European crisis undoubtedly has had a big impact on Switzerland because all the European nations now are looking to get back as much as tax as they possibly can from anywhere , and anyone , '' said Wheeler . `` We 've seen Switzerland fall away as a secret cross border location and just become somewhere which is convenient to put your money with a reasonably good tax rate . '' Many investors in the Asian markets prefer to invest offshore for risk diversification , or are forced to look overseas due to a lack of experienced and reputable wealth managers in their home markets , according to the report . Assets under management in Singapore could quadruple by 2016 as a result , while offshore assets in Swiss bank accounts are predicted fall by nearly a third to below $ 2 trillion in the next three years . CNN 's Isa Soares contributed to this report .
Singapore tipped to become largest offshore wealth center in terms of assets by 2020 . Market leader Switzerland is losing its gloss due to tighter banking regulations . Growing numbers of wealthy Asians are looking for banking hubs closer to home . Comment: