Global Private Banking Awards 2017: Winners’ Profiles – National Winners (Asia)

Best Private Bank in Australia
BT Private Wealth

BT Private Wealth has continued to strengthen its direct wealth business, to cater to self-directed investors, recently offering them the possibility to directly transact in international equities.

The bank’s investment and private wealth markets services are “ahead of its competitors in terms of insights and innovation”, claims Jane Watts, general manager at BT Private Wealth. 

 “Our ‘advice on your terms’ engagement model is key to our value proposition as it truly suits our clients’ preferences,” says Ms Watts. Clients can access everything from execution-only services to the provision of “comprehensive personal advice” via the bank’s strategic wealth advisers.

Analysing and reshaping the bank’s services based on clients’ feedback is also crucial to generating high levels of satisfaction, she adds.

Customers can gain access to “unlisted, wholesale and sophisticated solutions” through the bank’s Global Investment Service (GIS). These solutions are sourced and selected based on the bank’s thematic views on global and domestic markets, as well as clients’ direction. 

“The thematic approach is outside of a traditional asset allocation approach and allows our clients to invest within thematic areas that resonate with them.”

The platform facilitates the pooling of assets, allowing access to investment solutions that are generally out of reach, due to high minimum investment amounts, being institutional in nature or bespoke opportunities, explains Ms Watts.

The Australian bank, which last year attracted AUD6.4bn ($5bn) in net new money, bringing total client assets to more than AUD37bn, launched several alternative solutions, recognising these are “increasingly important options for clients given that the universe of yield solutions is shrinking”. 

Recently it introduced venture capital funds for the first time, allowing access at a lower minimum entry. It also offered access to a private equity fund as it was being raised. 

With the great majority of high net worth clients looking for more ability to direct their own investments, the bank continues to invest in technology and digital capabilities to enhance its client experience and is cautiously considering launching a “genuine, robo-advice solution” in the future. 

“We believe the holy grail of a digital advice experience is a goals-based solution. This should consider the impact of the Australian tax environment, social security system and investment preferences allowing optimisation between superannuation, debt repayment, debt recycling and other solutions,” states Ms Watts. ET

Best Private Bank in New Zealand
BNZ Private Bank

Winner of the Best Private Bank in New Zealand award for the third year running, BNZ Private Bank has undertaken key initiatives to enhance its value proposition to clients, with a focus on delivering a more robust investment programme offering a “truly global reach”. 

The appointment of Australasian asset consultant Jana enabled the bank to expand its investment research and manager selection capabilities, offer better quality portfolios to clients and provide access to specialist investment managers not available to other investors in the country, explains Donna Nicolof, head of BNZ Wealth & Private Bank. A review of strategic asset allocation brought greater diversification and exposure to international assets, which have now increased to represent 64 per cent of assets in client model portfolios, from less than 40 per cent two years ago. 

“This initiative was driven in part by our desire to manage investment risk, particularly in an environment of increased uncertainty,” says Ms Nicolof.

Finally, under its own brand, the bank launched a new range of funds, the Private Wealth Series, managed by sub-advisers on a segregated basis. “These funds offer a cleaner, simpler investment proposition to our clients, while delivering scale and efficiency into our business,” she states. These investment solutions also enable better control and oversight of client money and are “unique to the bank, better representing its values”, she says, referring to the newly launched multi-manager, multi-style international equity fund which incorporates a responsible investment overlay.  

Gradually shifting client assets into its own products, away from off the shelf, third-party retail funds – is also more remunerative for the bank, which has enjoyed a 160 per cent revenue growth since the fund series launch.

During the past three years, BNZ’s Wealth and Private Bank team almost tripled the size of funds under management, from NZD1.5bn ($1.07bn) to NZD4.3bn. The growth was boosted by surging demand for private banking and family office services, as people’s wealth expanded, mainly driven by business sales, New Zealanders returning home and new migrants. 

“We see these factors continuing to increase the demand for private banking in years to come,” says Ms Nicolof.

A key area of focus for the bank over the next three years is the development and delivery of tools for advisers to operate remotely.  ET

Best Private Bank in China
China Merchants Bank

The opportunities for private banks in China are considerable. According to the 2017 China Private Wealth Report, published by CMB and Bain & Company, the number of high net worth individuals (HNWIs) has been continuously increasing since 2009, reaching 1.58m by 2016. 

This progress is projected to continue. “The China private wealth market is enjoying rapid growth with huge potential for further development,” says a spokesman from China Merchants Bank (CMB).

The bank was one of the first commercial banks in the country to enter the private banking space, launching its first services back in 2007. By the end of 2016, CMB had 53 private banking centres across the country, serving more than 58,000 clients with total assets under management of around RMB1.5tn ($225bn).

The ability of wealth managers to offer a professional service to their clients “is the only core competitive advantage” rival firms can use to attract and retain clients, says the spokesman. 

“Over 10 years, our private bank has built a professional investment system of advisory services, comprehensive asset management and product service capabilities to meet high-end customer investment needs, and to continuously achieve the value of customer wealth preservation.”

To help clients allocate assets, CMB private banking has developed an open product platform that it claims is the market leader in China due to its diversity of products and functions. The financial products offered include cash management/currency market, fixed income, equity, alternative and overseas investment products to provide comprehensive investment opportunities for clients.

The global asset allocation demands of Chinese clients have increased sharply, with the percentage of HNWIs who have already invested in overseas markets increasing from 19 per cent in 2011 to 56 per cent in 2017, according to the China Wealth Report. This figure is expected to rise in the future, making access to overseas markets a key battleground for private banks. 

“We are accelerating the development of global investment and financial services, such as cross-border asset allocation, wealth inheritance, tax planning, legal advisory and other services, to manage their assets in both domestic and international markets,” says the spokesman. ES

Best Private Bank in India
Kotak Wealth Management

Kotak Wealth Management, the private banking arm of Kotak Mahindra Bank, provides financial advice to some 40 per cent of India’s 100 wealthiest families, as defined by the Forbes India Rich List 2016. With more than 16 years of experience, it is one of the oldest wealth managers in the country.

The Kotak Family Office service has more than 100 clients, focusing on areas such as succession planning, tax optimisation and philanthropy.

Digital communication is important at Kotak and the bank has introduced its own online reporting platform providing live access to investment portfolios, while private banking clients are also catered to via its wealth app.

The bank is also extending its reach deeper into its clients’ families. Its annual Next-Gen Connect programme is aimed at the children, offering a three-week annual experience programme to teach them about markets, asset classes and investments. Meanwhile the Leading Ladies programme is an eight-session scheme organised for the spouses of existing clients covering similar themes.

“There was a latent need among ultra high net worth individuals to enhance financial understanding among family members,” says a spokesman at the bank. “So far we have reached more than 100 families across India with this programme.”

Indian investors have traditionally favoured domestic investments into traditional asset classes, however Kotak reports that this is gradually changing. The new generation of business professionals is much more likely to take on more risk in their investments and look at allocations to start-ups and early stage companies, as well as looking at overseas investments. 

While Kotak may not necessarily have the in-house expertise to cater to these demands directly, the bank claims its open architecture approach ensures it has a number of tie-ups to meet clients’ needs. ES

Best Private Bank in Hong Kong
HSBC Private Bank

Few people remember, these days, that HSBC stands for the Hongkong and Shanghai Banking Corporation – the bank was founded in Hong Kong back in 1865.

One might almost be tempted to say that the clue to HSBC’s accolade as Best Private Bank in Hong Kong lies in the name. Certainly many of this year’s victors around the world are extremely long-established in their particular national market.

“For many years, HSBC Private Banking has helped clients build, manage and preserve their wealth, and supported the growth of their businesses into international powerhouses through HSBC’s universal banking capabilities,” says Kevin Herbert, co-head North Asia, HSBC Private Banking. “The bank’s history, connections and understanding of the market and the region certainly differentiate us from our competitors.”

However, many private banks once dominant in a particular location have, through resting on their laurels, lost this dominance. Far from resting HSBC has, by contrast, been busy.

In particular, it has given a lot of thought to the needs of Hong Kong clients, which often require other services in addition to straightforward wealth management. In this respect, the private bank’s inclusion within a huge banking group is an advantage.

“Within the private bank, we offer clients a wide range of capabilities to cater to their interests, including corporate finance solutions, credit advisory solutions, real estate club deals and other services,” says Mr Herbert. “Our Private Wealth Solutions department has also supported families with their succession planning needs for more than 70 years, from family governance advisory to philanthropy advisory services.” 

He adds: “As HSBC Private Banking clients, they also have access to the origination of capital financing and M&A advisory mandates, and HSBC-led capital market transactions.”

HSBC has also been good at addressing the particular needs of different national markets – this year it was highly commended in the Best Private Bank in the UK category. DT

Best Private Bank in Singapore;
Best Private Bank in Indonesia
Bank of Singapore

Bank of Singapore is experiencing some serious growth. By 2016, assets under management grew by almost 45 per cent from the previous year to reach $79bn.  

Some 20 per cent of this was down to organic growth, but the bank completed the acquisition of Barclays’ wealth business in Singapore and Hong Kong in November 2016, which saw the transfer of $13bn in client assets. Revenue was up by 15 per cent, with net profit increasing by 13 per cent.

Bank of Singapore prides itself on having a prudent and disciplined cost management approach. It claims to focus resources only in markets where it believes it can succeed, for example in south-east Asia, Greater China and the Middle East, specifically the Gulf Cooperation Council countries, instead of trying to grow in markets where it does not possess key advantages.

Although the bank is very much rooted in Asia, it claims to be a truly global firm, with its open architecture platform seeing it partner with strategic providers across the globe. Headquartered in Singapore, the bank also has offices in Hong Kong, Manila and Dubai.

With the majority of private wealth in Asia being generated by entrepreneurs, meeting the needs of this customer base is vital for any wealth manager searching for success. Bank of Singapore believes these clients are looking for help with both their personal finances and business needs, and claims its relationship with its parent company, OCBC Bank, allows it to offer entrepreneurs a wide range of services in both areas. 

“Winning the Best Private Bank in Singapore award is a testament of the strengths of our products, our people and our brand,” says Oliver Denis, global market head, Singapore, International, Thailand & Indo-Chin at Bank of Singapore. “To be picked as the winner amongst so many established global and Asian private banks located in one of the leading financial hubs in the world and in our own turf – Singapore – is truly an honour.” ES

Best Private Bank in Malaysia
CIMB Private Banking

Despite being highly competitive, Malaysia’s private banking sector struggles with lack of scale, high costs of operations, stringent regulations and a “semi-closed” market. 

What differentiates CIMB is its universal banking proposition, claims Carolyn Leng, head of CIMB Private Banking, Malaysia. “This gives us a competitive advantage over independent private banks due to our vast and highly-specialised resources and capabilities for high net worth clients,” she adds.

Its integrated banking model allows catering to both personal and business client needs, while the bank’s Asean footprint facilitates clients’ regional expansion.

Over the past couple of years, the Malaysian private bank, which manages more than MYR30bn ($7.1bn) in client assets, has improved collaboration with its investment banking and corporate banking, setting up a dedicated team driving group-wide cross-divisional initiatives, and introducing investment consultants, who work alongside private bankers.

Cross-divisional capabilities have strengthened the relationship with clients, particularly with large corporations, and contributed to 21 per cent of the private bank’s overall revenue in 2016.

The private bank, which targets clients with minimum assets of MYR20m ($4.7m), provides “a holistic approach to servicing entrepreneurs on aspects such as exiting a business, building capital and business succession planning,” states Ms Leng. 

The bank’s strong presence in Malaysia, Singapore, Thailand and Indonesia brings opportunities such as cross-border credit facilities, allowing clients to pledge Malaysian assets as collateral and draw down from the different countries. 

To overcome regulation restrictions and limitations in offering products that are not licensed onshore, CIMB has partnered with key local fund management companies with foreign investment capabilities.

“Our partnerships with foreign solution providers have expanded our offerings to cater to multi-assets and multi-currencies which span across the global market,” says Ms Leng. The private bank has also extended its geographic coverage, especially in mutual funds, enabling clients to tap into developed and emerging markets. Alternative solutions, including private equity funds, have also been introduced. “Reducing portfolio volatility is our key priority.” ET

Best Private Bank in Korea
KEB Hana Bank

Hana Bank already possessed the most high net worth individual (HNWI) clients of any South Korean bank prior to its 2015 merger with Korea Exchange Bank, but that tie-up saw the new entity consolidate its domestic lead while expanding its global network to 151 locations in 24 countries.

Further “strategic” growth plans are in the pipeline, according to senior manager Edward-Kwonseok Son, with three Gold Club Private Banking Centres in Daejeon, Daegu and Kwangju to expand to cater to local HNWI demand. 

“We are also constructing two International Private Banking Centres within Korea, in Jeju and Busan, and plan to launch more centres abroad in Hong Kong, China, Indonesia, Canada and the US,” he explains. 

Private banking services have been extended to cater to affluent clients, with more than 1,500 VIP advisers assigned to retail branches to meet growing demand for wealth management services.

Another area of development has been in the robo-advice arena, with the launch of its HAI Robo platform, following an 18-month development period. Mr Son explains how the bank sees the undoubted potential that technology brings to the wealth management sector, but admits to being surprised by the momentum gathered by its own service, with assets under management reaching $15m by the end of August.

When it comes to technology, KEB Hana firmly believes in a hybrid model which allows clients to access the digital tools that facilitate self-investing, but also human advice on a periodic basis, or as much as they deem necessary. 

“We believe in combining the best of both worlds – the low cost and ease of access of digital platforms along with real-life human advisers’ expertise in handling more complex scenarios,” he says.

With the average age of KEB Hana’s private banking clients a relatively advanced 65, the adoption of technology certainly appears to be one way for the Korean
bank to bring a younger generation into the fold. ES

Best Private Bank in Taiwan
Taipei Fubon Bank 

Clients of the wealth management arm of Taipei Fubon Bank can relax; a team of kung fu pandas ensures that the bank, including its wealth management arm, remains innovative.

Such is the official nickname of the team formed by employees from different departments, which looks at encouraging innovation.

Outside this team, everyone is rewarded for good ideas, through an innovation reward programme which encourages employees to make proposals about initiating new business, improving operational efficiency or creating a better customer experience. 

 “In the banking industry, innovation is not the work of lone geniuses but the high-value work done in teams,” says Morris Huang, senior executive vice president for retail banking, including the private bank. “With better collaboration among departments, information and resources can flow freely to facilitate improvement and innovation.”

As an example of this innovation, he notes that the bank was the first in Taiwan to set up a real-time digital platform for trading overseas stocks and ETFs.

As the winner in the Best Private Bank in Taiwan category, Taipei Fubon Bank is in a position to win further advantage in a growing market. The number of people with assets of $1m or more grew 11.9 per cent in the territory in 2016 – the third fastest growth in Asia Pacific according to Capgemini’s Wealth Report 2017.

Mr Huang thinks the amount of wealth in Taiwan will grow further, as major economies around the world adopt the Common Reporting Standard in 2018. Experts expect this crackdown on tax evasion to prompt wealthy people to repatriate their assets back onshore. “There are expectations that under this new standard, the overseas assets of many wealthy Taiwanese families and business owners will return to Taiwan, boosting demand for high-wealth management services,” he says.

But even if this money is repatriated, most of it is unlikely to be invested on the island. “For the majority of clients, their holdings of Taiwan dollar-denominated assets constitute a relatively low share of their portfolios,” adds Mr Huang. “Though Taipei Fubon Bank is based in Taiwan, we have an international vision and professional experience developed over years of operating in global markets.”  DT

Best Private Bank in Thailand
Siam Commercial Bank

Siam Commercial Bank (SCM) is on an ambitious and thus far successful drive to increase the number of clients in its private bank, building on its large client base as a commercial bank.

“The growth in the number of clients comes from synergy across the bank,” says the bank, declaring it has a “strategic play” to “leverage existing relationships with SCB Group” to grow its private banking business.

An important part of the private bank’s mentality is its consciousness that it is serving entrepreneurs. “As the majority of our clients are entrepreneurs, integration between business and personal needs is inevitably essential,” says the bank. In line with this, in 2016 it began a referral programme between the wholesale and private banks, pairing up team managers to enhance the client banking experience. 

SCM also notes that its private bankers are trained in corporate finance and investment banking in order to understand and serve entrepreneur clients according to their needs.

The private bank has given a lot of thought to the prevailing international lower yield environment. This leaves clients on the horns of a dilemma. “Traditional sources of return, such as deposits or government bonds, are no longer sufficient to meet HNWIs’ expectations,” notes the bank. “At the same time, a singular focus on highest-yield instruments could expose investors to downside risks, as the global economy remains fragile.”

To help its clients navigate such markets, it advises dynamic asset allocation. The bank explains: “Customising mixed-asset portfolios of fixed income, equities and other income-generating securities increases the likeliness of achieving a specific level of sustainable income in changing market environments, while tailoring for their specific tolerance of investment risks or volatility.” DT