Best Private Bank in Korea - Hana Bank
Since introducing the private banking model in Korea in 1995, Hana Bank has seen the number of its private customers and assets increasing by an average of 10 per cent annually. Assets for clients with an account with more than KrW500m (€317,000) amounted to KrW22bn at the end of last year, with KrW1.6bn in net new money.
The bank has been actively promoting the use of asset allocation, customised portfolio management and investment education, says Hyung II Lee, head of Hana Private Bank. This strategy has had some success as the proportion of investment assets - including equity, fixed income, and alternatives - on the total HNWIs’ AuM has reached 61 per cent, versus less than 50 per cent for other domestic banks. The product based fee structure has mostly driven Hana Bank’s profit growth in 2010, he says.
“Client needs are always evolving and the innovation of both products and services is essential,” believes Mr Lee. Following changes in regulation, which lifted the separation between retail and investment banks, Hana launched a number of customised products, such as advisory wrap accounts or absolute return funds, which were well received by customers. “The timely launch of products got a very positive response, as the recovery of the global economy drove customers’ higher risk appetite.” The private bank acquired more than 1,100 new customers in 2010 to reach 16,170 in total.
New services were also introduced; some of them targeted to the second generation of clients, such as couple-matching services between children of HNW customers and wedding planning. “The issues around financial planning for people in the post-retirement space and the transfer of assets to the second generation could bring the next wave of innovation,” he says.
The bank claims to have been the first in Korea to introduce private banking applications on high-tech smart-phones and the first to offer a video call service between the head-quarters and the branches.
Hana believes in client and adviser segmentation. Client/adviser ratios range from 1 to 30 for the UHNI and HNW and 1 to 100 for the middle small HNW. In the latter case, a new system has been introduced where professional consulting teams support advisers.
The Korean bank is expanding in Asia, through local subsidiaries and branches in Indonesia, China and Hong Kong. It also recently established a strategic alliance with CMB China. ET
