Best Emerging Private Bank - CIMB Private Banking

CIMB Private Banking is a market leader in the private banking space in Malaysia and today has assets under management of MYR8.54bn ($2.73bn), more than doubling the $1.33bn figure from 2008.

The private bank’s management philosophy focuses on wealth preservation – especially in light of the financial crisis – and so emphasis is placed on this, rather than on shorter-term investment goals.

CIMB Group has a universal banking platform and the wealth management platform is integrated to the ‘One Bank’ concept so that CIMB Private Banking offers a suite of products that is integrated under one roof.

CIMB Private Banking has now completed transforming its platform, a process that it began in 2008, which it argues now offers better operational efficiency through automation, an enhanced delivery structure, and expanded offering of products and solutions.

In 2010 the private bank saw a 61.9 per cent year-on-year increase in revenue, which was attributed to increased scalability and more diversified streams of revenue and increased annuity income across a wider range of products and asset classes.

The most significant development this year has been the shift in the behavior of the authorities from being a regulator to enforcement officer, says Carolyn Leng, head of CIMB Private Banking, Malaysia. “The increased supervision has led to a massive mindset shift from supervisory to full oversight of the industry players. There are certainly pros and cons to this effect, as long as regulators understands that there is a need for a balancing act.”

The greatest challenge is the limitation set by the regulators which curb the development of private wealth management for HNWs/sophisticated investors, she adds. “Over time, if unresolved, it can be a value destroyer such that good talents will leave for better platforms, the share of wallet per client remains stagnant and investors’ will eventually find loopholes to channel their assets offshore in pursuit of more ‘choices’ of investment products.” JC