Global Private Banking Awards 2018: Winners’ Profiles – National Winners (Asia)

Best Private Bank in Asia;
Best Private Bank in Singapore;
Best Private Bank for customer service (Asia);
Best Private Bank for Innovation
DBS Bank

DBS Bank is fast rising from a national champion in Singapore, to more of a regional leader in pan-Asian wealth management, praised for its innovation in digital technology. It now manages $108bn in wealth across the Asian region.

Recent highlights include the roll-out of its iWealth “full suite digital wealth management platform”, the incorporation of portfolio and performance analysis tailored to individual preferences, 24-hour access to markets and latest research and new enhancements in online foreign exchange trading.

Whereas previous innovations have very much concentrated on digitisation of processes, the easing of trading and payments for clients, the creation of easy-to-use smartphone apps and the research and use of big data analysis in its servicing of customers, there is now a concerted effort to pioneer new investment strategies.

Environmental, social and governance criteria for investment portfolios are now firmly in the sights of Su Shan Tan, group head of wealth management and consumer banking at DBS. Ms Tan has previously focused on serving customers and offering them market-leading advice. Providing them with access to a socially-conscious investment agenda could be a valuable new string to the bank’s bow.

“We want to lead in the ESG and impact investing space,” says Ms Tan. “This year we have made great strides in educating our staff and clients that doing good can and should be good business. One does not exclude the other.”

The belief at her bank is that as more and more wealth in Asia transfers from one generation to the next, millennials will invest as much for good as for profits.

“They wish to invest in companies that do business in a responsible, sustainable and impactful manner. In addition, more and more indices are being benchmarked to be ESG compliant, hence we have seen more flows automatically channelling into ESG-compliant component stocks.”

The bank has launched a suite of products playing to this new thematic, including the Women’s Livelihood Bond, which has helped offer 385,000 women in southeast Asia access to credit, markets and affordable goods, and the ESG outperformance warrant and note, investing in the MSCI Asia ESG Leaders Index, while simultaneously shorting the MSCI Emerging Markets Asia Index.

DBS continues to add staff, with a focus on onshore markets and “domestication” of wealth, helped by its acquisition of ANZ’s wealth management franchise in Taiwan and Indonesia. India and China will also see key future initiatives for the bank, with Hong Kong’s increased connectivity to China through the Greater Bay Area project seen as a key stimulus for wealth creation. YB

Best Private Bank in Australia
BT Private Wealth

Good relationship managers at private banks develop an instinctive understanding of the psychology of their clients after a while, but BT Private Wealth has gone further than this.

Using an external research house, it has surveyed a number of high net worth individuals, both among its client base and outside, to determine the psychological profile of the typical wealthy Australian.

Based on this research, it has identified that HNW clients tend to be more self-directed in nature (rather than ‘delegators’). Specifically, 60-70 per cent of HNW clients demonstrate the characteristics of a ‘controller’ – broadly speaking, someone who likes to shape their own destiny.

The private bank has used this insight to develop a flexible engagement model, which it calls ‘Advice on Your Terms’. This involves offering a range of services, including not only comprehensive personal advice through strategic wealth advisers, but also execution-only services.

BT Private Wealth, part of Australia’s Westpac banking group, has certainly followed an approach popular with Australia’s well-heeled. Client numbers have risen sharply in the two years to 2017, with an even greater rise in assets under management.

The private bank has been keen on investment themes. Sam Bradley, director of BT Private Wealth in Barangaroo, says a popular theme with clients at the moment is cyber-security, with companies spending more money as they seek to protect client data and privacy. 

Clients are selecting cyber-security equities in the US, as well as ETFs focused on this theme. 

Customers also like opportunities that take advantage of the strength of the US dollar and weakness of the Australian dollar. BT Private Wealth notes that, on average, about half of client portfolios are in US dollar-denominated assets. This includes not just equities but also fixed income, as investors position themselves to take advantage of rising US interest rates. Clients are not currently investing much in China, as they wait to see what happens in the incipient trade war with the US. DT

Best Private Bank in China
ICBC Private Banking

The growing sophistication of ICBC Private Banking is particularly welcome in a country which has seen more than its fair share of poorly conceived and excessively risky investment products in recent years, products that have drawn in many self-made entrepreneurs with little investment experience. As Zhang Xiaodong, head of ICBC Private Banking puts it tactfully: “Our clients are mainly entrepreneurs, earning money from the real economy. They got used to managing their wealth on their own, but the investment environment has become more complex in China recently, so these people tend to turn to professional asset management institutions to prevent money devaluation.”

ICBCPB has also managed to keep growing without sacrificing quality. Its operation in the world’s most populous country is of mammoth proportions, with tens of thousands of staff managing tens of billions of dollars worth of assets for tens of thousands of clients – and all of these metrics have grown rapidly in recent years. ICBCPB is the biggest wealth manager in China.

In many ways ICBC Private Banking looks like a typical wealth manager these days – albeit one which is much larger than most. For example, it offers socially responsible investing, and greater access to overseas investing through offices throughout the world. With the launch in Luxembourg of the ICBC Private Banking Global Investment Fund Series SICAV-SIF, it became the first Chinese bank to establish an overseas investment fund platform. In common with many developed market private banks, it also has its own philanthropic programme. This involves raising money from clients to give children in Sichuan province access to clean warm water.

However, the private bank needs to maintain its Chinese essence in order to compete successfully against the multinational private banking rivals that are heavily focused on growth in China, such as UBS.

This can be seen in its relentless focus on the family, an institution of paramount importance in China.

Family-focused services include wealth management classes for clients’ children, an e-commerce platform that helps clients gain access to healthcare and education among other things, and expertise in succession planning.

ICBCPB credits its ability to hold its ground against overseas wealth managers partly to a good brand image and partly to ubiquity – 400 of its branches in China offer private banking. It also notes its strong ability in managing assets denominated in renminbi, which remains the main denomination for client assets. “This is a relatively weak area for foreign banks,” says Mr Xiaodong. 

Regardless of how good the intention, private banks are only effective if the quality of individual members of staff is high. ICBC Private Banking preserves quality through a system of talent management, including online university courses, sharing case studies and overseas training. DT

Best Private Bank in Hong Kong;
Best Private Bank in the UK
HSBC Private Bank

The main task at HSBC Private Bank, which has had to resolve structural and historic compliance problems, has been to evolve and refine its operational model, rather than innovate in a disruptive way, as it has long been a leader in terms of alternative investments and structured products.

“Across the private bank, we have been systematic about bringing the enormous resource of one of the world’s biggest private banks to our clients,” says Charles Boulton, CEO of HSBC Private Bank in the UK, part of a global institution managing $330bn in client assets across Europe, Asia and North America.

Its success in the awards for 2018 is testament to its ability to both continue to add clients and assets through its internal network but also to adjust and conform to a new era of regulatory stringency. In fact, the bank believes it has improved dramatically in its ability to bring together colleagues from private, retail and commercial banking to anticipate and support the needs of shared clients. Regional expansion in the UK has been part of this policy, with a UK HQ based in Birmingham, to reflect daily client needs across the entire country, rather than being branded a London-centric bank, although the private bank's biggest office remains in London.

HSBC’s understanding of entrepreneurs is now being leveraged to support these clients more effectively through different stages of their lives and business cycles. YB

Best Private Bank in India
HDFC Bank

HDFC Bank’s main aim is to be a “world-class Indian bank”, benchmarking itself against international standards and best practices, in terms of product offerings, technology, customer service, risk management and compliance. 

Headquartered in Mumbai, the bank’s vast distribution network consists of some 4,700 branches, across 2,700 cities. 

Wealth management services are offered on the basis of client segmentation across four main categories: private banking, for clients with assets of at least INR10m ($135,000); ultra high net worth, for those with a minimum of INR50m; virtual relationship manager, for accounts of at least INR1m; and non-resident Indians. Catering for Indian clients based in the UAE, HDFC has taken advantage of its position as an Indian bank with strong presence in the Middle East, to attract clients among the Indian diaspora in the region.

One of the bank’s key strategies over the course of 2017-18 has been to broaden its product suite by adding new product categories. Alongside the more ‘plain vanilla’ products they have offered over the years, HDFC has expanded its investment solutions range to include offshore mutual funds and bonds and alternative investments, including private equity and commercial real estate funds.

In terms of customer services innovation, the bank has recently launched a new digital platform covering all the financial needs of their clients, from basic banking transactions, to loans and investments. 

Moreover, and as a further step towards the implementation of state-of-the-art technology as a means to enhance client experience, customers visiting some of HDFC’s many branches could soon be greeted, and assisted, by humanoid robots. PG

Best Private Bank in Korea
KEB Hana Bank

With 80 per cent of Korean HNWIs living in the capital Seoul and the surrounding province of Gyeonggi, up until recently this region had naturally been the focus of KEB Hana Bank’s attentions. But the bank is now expanding into other metropolitan areas across the country as it seeks to expand its private banking services nationwide. 

“This expansion is not only meaningful in terms of securing new customers, but also to provide wealth management services to HNWIs and to their households without any kind of regional restrictions, whether their families live in Seoul or not,” says senior manager Hwajin Hong. “It is about creating a network connecting the entire country.” 

Although many banking transactions are shifting online, an area which the bank has invested heavily in, KEB Hana believes branches still have a role to play, allowing clients to seek expert advice face to face.

Another physical embodiment of the bank’s dedication to customer service is the network of Gold Clubs it has built. These 25 clubs, 23 of which are in Seoul, each have a different concept. For example, those in residential areas may include a wine bar to host social gatherings, while ones located in commercial areas or in major business hubs have meeting rooms where customers can hold presentations and business meetings. 

The bank is also targeting women as future clients. “In Korea, housewives traditionally tend to manage family assets, so we strive to meet the demands and needs of female customers,” says Ms Hong. Recent initiatives have included cooking classes, art exhibitions, and travel programmes in which mothers and daughters can participate together. 

KEB Hana’s assets under management grew by 10 per cent in 2017, while the number of high net worth clients rose by almost 8 per cent. ES

Best Private Bank in Malaysia
CIMB Private Banking

Launched in 2002 in Malaysia, CIMB Private Banking has expanded into other markets to include offices in Indonesia, Thailand and Singapore. It offers advisory services, portfolio planning and wealth management solutions for high net worth individuals across the region. 

The private bank is part of the CIMB Group, the fifth largest banking group within the Association of Southeast Asian Nations (Asean), employing 37,000 in 15 countries across Asian and beyond.

“Our key value proposition lies in CIMB Group’s strong, established in-house capabilities, deep Asean expertise and continued commitment to deliver the best banking and financial solutions to our clients across Asean,” says Dato’ Kong Soori Lin, group head of CIMB Private Banking. 

Leveraging on the group’s capabilities and strengths has allowed the bank to expand market share and revenue. “But it has also enhanced our customers’ experience by providing convenience and benefits of consolidating their personal and business relationship with us,” she adds.

The bank offers a full suite of integrated investment and banking solutions, including equities, fixed income, alternative investments, derivatives and structured financing, among others. It operates an open architecture approach, whereby investment solutions are sourced from within the group, as well as from third parties.

Over the past year, CIMB Private Banking has aggressively focused on the mid-tier and the young and affluent client categories.

“With strong collaboration between our key business pillars within the group, we have strengthened our ability to offer bespoke financial solutions for all of our customers’ needs, be it personal or business. Our complete suite of solutions, well-trained advisers and strong Asean footprint, make for a highly compelling proposition to customers, which has driven the strong growth in our business,” says Ms Dato’ Kong. PG

Best Private Bank in Mexico
BBVA Bancomer Banca Privada

In 2017, BBVA Bancomer implemented a new advisory service model focused on customer segmentation. The new framework allows the bank to deliver global tailor-made solutions catering to specific niche segments including UHNW clients, younger investors and less affluent customers.

The move complements other steps taken by the bank in recent years, including the launch of its ‘Experiencia Unica’ service model, designed with four stages of the customer journey in mind – early engagement, onboarding, delivery and servicing. The model has helped develop strategies that can evolve in line with changing customer needs and technologies.

For private clients, BBVA Bancomer has introduced features that allow customers to establish direct communications with their private bankers through a mobile app. The bank has also recently re-designed its self-service investment platform, ‘Btrader’, adding a user-friendly interface that makes it easier for clients to trade stocks and funds online, download research reports and manage their own portfolios with high standards of online security.

Investment has also been made in developing a Family Office UHNW service, consolidating advice and execution of global portfolios, across in-house and external investment managers. In addition to the investment solutions on offer to this client segment, the bank offers a number of non-financial services such as a specialised health service, educational counselling, and an art advisory service. Clients can also benefit from access to BBVA’s global network, including BBVA Compass, BBVA Spain and BBVA Switzerland.

In 2018, BBVA Bancomer became the first private bank in Mexico to issue a green bond on the local stock exchange, the Bolsa Mexicana de Valores, a move it hopes will support the development of the green bond market in the country. PG

Best Private Bank in New Zealand
ANZ Private Bank

ANZ, the largest private bank in New Zealand, registered growth in all areas of business in 2017, including deposits, lending and investments, with client assets rising 8 per cent to $17.4bn. This achievement is “a reflection of the strength of our client focus and an important indicator that clients value the bank’s 360 degree, solution based-approach,” explains Ben Kelleher, head of ANZ Private Bank, New Zealand. “More importantly, it demonstrates that having a holistic focus on our clients is not only good for them – it’s also good for our business.”

Meeting the changing needs of clients is crucial to attract new customers, he believes, and gathering and acting on client feedback is key. Last year, the bank introduced online client surveys with automated reporting of results. “This has allowed us to gather more frequent, timely feedback from clients and continually monitor how we are performing, and what we could be doing better,” he says.

Providing wealth solutions for rich individuals transitioning from successful private businesses or large firms continues to be a strong focus for the bank. 

Migrant investors are also a rapidly growing client segment, and the private bank’s dedicated team, the largest in New Zealand, offers wealth solutions required for visa purposes, as well a full range of wealth and banking services. 

Over the last three years, ANZ Private has on-boarded more than 50 per cent of all “investor category” migrants.

Improving financial literacy is a topical issue in New Zealand, as the level of financial literacy generally lags other developed countries such as the US or UK. 

To ensure clients have the information and knowledge to make informed financial decisions, the bank has introduced new initiatives, including a commitment to plain English in all communications, and regular events giving opportunity to build knowledge and hear from experts.

Investing in technology is also crucial. Through the bank’s projection app, private bankers can now easily explore different investment scenarios with clients, and illustrative tools help “demystify wealth management concepts and empower clients.” ET

Best Private Bank in Taiwan
Taishin International Bank

Taiwan is fast-becoming a key market for wealth management in Asia. According to a recent Capgemini’s Asia-Pacific Wealth Report, the number of high net worth individuals in Taiwan grew from 94,000 in 2010, to 142,400 in 2017.

At the same time, Taiwan’s population is getting older, faster, presenting private banks with many challenges. Crucially important for the sector is the fact that a large proportion of accumulated wealth still drains away during the transition from one generation to the next. 

“This is because banks don’t develop strong relationships with customers’ next generation,” says Samuel Lin, deputy CEO at Taishin Bank. “On the other hand, most of the wealth in Taiwan is held by old-age households. In order to stop wealth draining during the transition process, it is extremely important to develop long-lasting relationships with the next generation.”

With this in mind, Taishin Bank launched a household membership wealth management programme, becoming the first financial institution in Taiwan to promote wealth management services in association with child accounts. The aim is to assist clients to preserve and manage family wealth across generations through a comprehensive range of wealth management services, including customised trusts, insurance and investment planning solutions. Furthermore, family members can accumulate their assets to enjoy a range of privileges such as special offers on transaction fees. 

During 2017, the bank implemented its ‘Omni Channel’ service, bringing together a number of digital initiatives, including a financial intelligence app to help advisers deliver real-time asset allocation suggestions when out of the office; a digital bank called Richart, launched in 2016 to attract younger customers; and a number of other digital technologies for fast transfers and payments. PG

Best Private Bank in Thailand
Kasikornbank

Kasikornbank Private Banking continues to plough its own idiosyncratic furrow, with an emphasis on maintaining what it calls a “worry-free life” for clients.

Responding to this imperative, it offers the K-Alpha 2.0 investment model, under which the portfolio is divided into core and satellite sections. The core section makes long-term investments in less risky funds, with the satellite section devoted to higher-volatility funds designed to improve overall portfolio return. This allows portfolio managers to adjust client assets in an opportunistic response to circumstances but without making dramatic adjustments to the overall asset allocation, and without bothering the client too often.

The $22bn wealth manager’s approach continues to work well for its business, with another strong year of growth in 2017. Net income surged by 57 per cent in local currency terms, with 8 per cent growth in client numbers to almost 11,000. Kasikornbank PB estimates that the number of high net worth individuals in the country is growing at between 1 and 3 per cent annually, but it is increasing its market share of this, with another two percentage point rise to 36 per cent in 2017 cementing its position as the country’s predominant wealth manager. The number of client-facing staff was ramped up by 31 per cent to almost 60. One facet of this expansion was the 2017 launch of a new service to attract wealthy Chinese people living in Thailand, with all important information translated into Chinese, and the assignment of Chinese-speaking private bankers to clients.

Both quality and brand are supported by a partnership with the Swiss bank Lombard Odier. In line with a 2014 agreement, Lombard Odier manages global investment funds on behalf of Kasikornbank’s private clients in return for a fee. Moreover, Kasikornbank refers high net worth private clients to Lombard Odier, where appropriate, while the Swiss firm provides advisory training for the Thai bank’s relationship managers and financial advisers at a three-week training camp at its headquarters in Geneva. DT