Global Private Banking Awards 2019: Winners’ Profiles – National Winners (Asia)
Best Private Bank in Australia
Private Wealth – Westpac Group
Private Wealth (PW) is part of the Westpac Group, Australia’s oldest company and bank, founded in 1817. The firm operates a multi-brand strategy, providing services exclusively for the clients of Westpac Private Bank, St. George Private and Bank of Melbourne Private.
The bank’s growth strategy is centred around four main themes: enhanced alignment to the way in which their clients wish to engage; further development of investment capabilities for self-directed clients, while continuing to grow the more traditional banking services; greater client access to domestic and global investment opportunities; and a continued focus on up-skilling private bankers.
“I believe both interpersonal and technical skills are essential for a private banker’s success,” says Cathy Yuncken, general manager at Private Wealth.
“The time spent in up-skilling the bankers will vary depending on their experience level and time in role. On average, our private bankers will spend around one day per month on their professional development.”
PW’s investment team focuses on sourcing, selecting and monitoring institutional and wholesale investment opportunities globally, including wholesale bonds, IPOs, domestic and offshore managed funds, structured and alternative products, derivatives and foreign exchange solutions, among others.
For Ms Yuncken, one of the main challenges for private banks operating in Australia is to be able to anticipate the requirements of high net worth clients in a bespoke and unique way.
“We are continually looking at how to enhance client satisfaction. Governance also continues to be extremely important to maintain regulatory adherence, as well as anticipating changes to come,” she explains. “In terms of keeping ahead of our competitors, we continue to invest in technology to accelerate our bankers’ ability to respond to client needs and queries, and to provide our clients with a real-time view of the portfolios.” PG
Best Private Bank in China
ICBC Private Banking
Established more than a decade ago, the private banking division of the Industrial Bank of China (ICBC) targets HNW clients with assets of more than RMB8m ($1.1m). Headquartered in Shanghai, the bank is also present in Beijing, Guangzhou, Shenzhen, Taiyuan, Nanjing, Hangzhou, Jinan, Zhengzhou and Chengdu.
ICBC centres its private banking offering around five core services: financial management, asset management, consulting, value-added solutions, and cross-border financial services.
Over the recent past, the bank has reinforced its research capabilities, establishing a research team tasked with analysing financial markets and anticipating macroeconomic trends. It has also strengthened cooperation with other business lines across the group, including investment banking and personal finance divisions, to enhance the services offered to private banking clients.
The range of investment products on offer include a wide range of assets from equity to fixed income investments, private equity and alternatives, to respond to clients’ requirements in terms of returns, liquidity and safety.
Recognising the importance that the use of technology has on the quality and efficiency of the interactions between relationship managers and clients, ICBC has established a new platform, e-service, specifically built to enhance the efficiency of its relationship managers. In addition, the use of big data analytics has allowed the bank to explore clients’ needs and behaviours in a deeper and more precise way.
In addition to serving HNW clients, ICBC pays great attention to their children, believing them to be potential future clients. Programmes targeting younger generations include an annual summer camp, and the Elite Youth Training Camp in Beijing, which focuses on young people who have already shown good management skills and performance in their family businesses. PG
Best Private Bank in Hong Kong:
Best Private Bank in the UK
HSBC Private Banking
While HSBC’s UK head office and much of its infrastructure sit in London, the bank has a strong and growing presence across the country. Having invested strategically in its regional offices over the past two years, these are currently some of the fastest growing teams for HSBC’s private banking operations in the UK.
Operating from offices in Birmingham, Bristol, Cardiff, Leeds, Manchester and Edinburgh, HSBC provides locally-based relationship managers, investment specialists and strategic financial planners. Clients from outside of London have access to the full range of private banking products and services.
“In 2019, we have run a series of client events in the regions aimed at entrepreneurs who are looking to transition the ownership of their business,” reports Charles Boulton, CEO at HSBC Private Bank UK. “Our quarterly investment outlook programme has been delivered locally to clients across Scotland, the north and the Midlands. We are proud of our regional teams and are fully committed to expanding our presence outside of London.”
The UK market is experiencing significant challenges at the moment, he says, but believes these present opportunities for global banks to broaden and deepen private client relationships. “We offer our clients increased stability and confidence that comes with being a global financial institution, with a strong balance sheet.”
In Asia, HSBC services private banking clients throughout the region through key onshore hubs in Hong Kong, Singapore, mainland China and Taiwan and continues to expand. In September 2018, it announced plans to hire 700 new client team roles in Asia by the end of 2022, most of them in Hong Kong and Singapore. It is also investing heavily in its digital capabilities in the region, including the implementation of a new core banking platform, Avaloq, along with digital initiatives to improve the client experience.
A key opportunity for the bank is the transition of wealth to the next generation, with around $4tn expected to be passed down to the next generation over the coming 10 years. “Recognising this opportunity we have developed a Next Generation programme to engage with the future business leaders around the world, to better equip them with understanding how to manage and protect their family’s wealth,” says Mr Boulton.
One example of this is the bank’s scheme whereby it takes 15 Next Generation clients for a week-long immersive experience in the jungles of Borneo. The plan being for them to witness first-hand the impact of climate change and to learn how they can build sustainability into their family business models. ES
Best Private Bank in India
Kotak Wealth Management
Kotak Wealth Management, the private banking arm of India’s Kotak Mahindra Bank, is one of the oldest wealth managers in India. It manages wealth for about 40 per cent of India’s top 100 families. The bank recently significantly altered its business model, moving from a transaction-oriented focus to an advisory approach.
During 2018, the bank launched a campaign, Voice of the Customer, to gather client feedback. It also uses ISO standards to assess service quality and undertakes yearly audits to monitor performance. Also during 2018, the bank launched KWealth, an SMS service with dedicated staff that ensures clients are called back within 30 minutes.
Other forms of client engagement include programmes such as NexGen Connect, a two-day annual programme for millennial clients that is designed to help them make informed investment decisions. The bank also conducts tutorials on investment for the spouses of existing clients.
New exclusive product offerings and a greater emphasis on non-investment products such as credit and banking have been used by the bank to expand relationships beyond investments. Offerings include the Kotak Wealth Infinite Credit Card, which provides a higher credit limit, exclusive and personalised features along with a portrait of the cardholder on the card. The bank also offers a set of digital self-service financial management tools to enable clients to control their finances themselves.
In the alternative space, Kotak pioneered the distribution and referral of India’s first real estate investment trust, Embassy REIT. The bank also distributed the largest venture debt fund in India, enabling clients to earn regular high yields as well has obtain warrants in promising start-ups. The bank also introduces clients to promising start-ups to encourage direct investment. PG
Best Private Bank in Korea
KEB Hana Bank
Despite the challenging economic situation in the country, Korea’s KEB Hana Bank has continued to grow. Total AuM in its private banking business reached $54.4bn in 2018, with growth at a solid 8.6 per cent.
The number of private clients was up too, reaching 37,743, an increase of 1,796. This was enough to keep it narrowly ahead of Kookmin and Shinhan, with KEB boasting 28.82 per cent of the HNW client market, against its rivals’ 28.49 and 25.78 per cent respectively.
Since the launch of its PIB [private and investment banking] business model between KEB Hana Bank and Hana Financial Investment back in 2013, collaboration between the different parts of the business has increased.
“We have accelerated collaboration under our ‘One Wealth Management’ strategy across organisation, personnel, sales channels, products, brands and marketing activities,” says Jaechul Lee, general manager of the private banking business department at KEB Hana Bank.
He highlights meetings within the group, called “Matching Days”, which staff from KHB and HFI participate in regularly, the aim being to strengthen relationships and expand common consensus. In addition, wealth management workshops have been held annually for all private bankers within Hana Financial Group, covering market trends, investment strategy, knowledge sharing and more.
The bank aims to provide its private banking clients with a “truly family office service”, says Mr Lee, catering not only to individuals, but to their families as well.
“It is the concept of ‘cradle to grave’, focusing on total life care services including kids’ programmes for the third generation, match-making for second, through to wedding car and funeral support services,” he explains.
There are plans to develop this family life care services further, for example by launching products targeting grandparents, which provide both pension investments for the elder generation along with protection for their grandchildren. ES
Best Private Bank in Malaysia
Maybank
Maybank is the largest company by market capitalisation on the Malaysian bourse and one of the top five largest banks in south-east Asia.
Maybank’s private banking strategy is divided into three segments: Maybank Private for HNW individuals, Maybank Premier for the affluent, and Maybank Privilege for the emerging affluent.
Market volatility and the need for adapting quickly to the increased and rapid digitalisation of the sector are two of the main challenges facing the bank and its peers.
In addition, product differentiation among competitors is becoming increasingly difficult. “Product capabilities are quite similar between private banks in Malaysia, hence the need for more open architecture and more choice of bespoke investment solutions and products,” says Carolyn Leng, head of Maybank Private Malaysia.
Ms Leng argues that the bank’s extensive geographical footprint across eight countries gives it a competitive advantage, with Maybank leveraging its global network, capabilities and resources to provide clients with end-to-end solutions.
Recent initiatives include the launch of Maybank’s Lombard Credit, a multi foreign currency credit facility that provides liquidity for reinvestments. “This means that our customers who plan to invest in a foreign asset may borrow in the same currency as their targeted investment. The ability to borrow and invest in foreign currencies allows our customers to hedge themselves should the ringgit weaken,” she explains.
Another significant development has been the introduction of trust advisory services within Maybank Private, to better cater to HNW clients’ wealth protection and succession needs. “Through this initiative, we advise on local and offshore structures, both conventional and Islamic, to help clients plan their estate and legacy for future generations,” Ms Leng adds.
With the launch of its Wealth Management Academy in 2018, Maybank became the first bank in Malaysia with an educational centre for the sole purpose of training and enhancing the capabilities and professionalism of its sales force. PG
Best Private Bank in New Zealand;
Best Private Bank for Customer Service in Australasia
ANZ Private Bank - New Zealand
In 2018, ANZ Private continued to grow its business in the small but competitive New Zealand market, increasing its AuM by 13 per cent to $18bn and growing its operating profit by more than 16 per cent.
“Our success is a reflection of the consistency of our long-term strategy,” says Craig Mulholland, managing director wealth and private bank, with a “relentless focus” on putting clients first and developing personal relationships contributing to boost client numbers. At the same time, the bank’s ability to manage margins and improve efficiency, along with an increased focus on key segments such as migrant investors and family office/UHNW clients, drove the growth of operating profit.
New Zealand’s reputation as a stable and inclusive country makes it an increasingly attractive place to live. “We are receiving an increasing number of enquiries from investors around the world including Asia, Europe, the UK, and the US,” says Mr Mulholland.
“In our experience, migrant investors value a partner who can help introduce them to networks and business opportunities in their new country.”
For migrant clients planning to come to New Zealand on a ‘Migrant Investor’ visa, the bank can help streamline the process by structuring portfolios and reporting, to help meet Immigration New Zealand (INZ) requirements, thanks in part to a Memorandum of Understanding with INZ, which allows the bank to work directly with them on behalf of migrant clients.
To respond to the needs of the rapidly growing Asian population in the country, which represent an increasing proportion of the bank’s client base, ANZ has set up a dedicated, full-service, multi-lingual Asian private banking team. In 2018, it also translated its website and client surveys into Chinese, with both initiatives a first in New Zealand. The bank also holds exclusive events for Asian clients, while also taking part in events on the ground in Asia.
Independent research carried out in 2018 shows that client satisfaction with ANZ continues to grow: 91 per cent of clients are very satisfied with the service, and nine out of 10 would highly recommend the bank to others.
The ability to meet all clients’ needs from a single point of contact, personalised service, pro-active and real time communication to update clients on key markets events and their impact on portfolios, transparency and offering of diversified portfolios, including alternative solutions, are more important than ever in current times of uncertainty, adds Mr Mulholland. ET
Best Private Bank in Singapore
Bank of Singapore
A private bank subsidiary of OCBC Bank, Bank of Singapore operates on an open architecture platform, enabling it to be “independent and work with strategic global partners”, says Olivier Denis, global market head, Singapore, Malaysia and international at Bank of Singapore.
Partners include Blackstone, BlackRock and Lion Global. The open architecture approach is complemented by an inhouse research team of 30 analysts and product specialists covering more than 1,000 securities and 30 currencies.
“The majority of private wealth in Asia is generated by entrepreneurs,” says Mr Denis. “Being an Asian private bank, we are committed to serving the needs of entrepreneurs in Asia. We understand the Asian markets, cultures and risk profiles.”
Increasingly, entrepreneurs want private banks that can look after not only their personal finances, but also their business finances. Bank of Singapore teams up with OCBC Bank to offer wide-ranging consumer and business services such as bancassurance, real estate financing and investment banking services.
A highlight of the past year was a strategic partnership with Indian financial services company Edelweiss Group. Under the deal, Bank of Singapore is offering its global investment solutions and Edelweiss is contributing wealth solutions and investment opportunities in India.
“This partnership will allow us to significantly raise our profile in one of Asia’s fastest growing wealth markets through one of India’s largest industry players,” says Mr Denis.
The bank also launched BOS Wealth Management in Europe. Based in Luxembourg and with a branch in London, the subsidiary offers a range of private banking solutions and investment advisory services to clients in the European Economic Area and the UK. HM
Best Private Bank in Taiwan
CTBC Bank
Founded in 1966, CTBC has grown to become one of Taiwan’s largest privately-owned banks. In addition to its 152 domestic branches, the bank has the most extensive international network of any Taiwanese financial institution, with more than 100 offices spread across the Asia-Pacific region and North America.
Knight Frank’s 2019 Wealth Report shows that eight out of the top 10 fastest-growing wealthy populations reside in Asia, with Taiwan ranking eighth for the number of individuals worth more than $30m.
In 2018, and in order to differentiate and improve the quality of services aimed at ultra-high net worth individuals (UHNWIs), CTBC launched a dedicated business unit, Private Privilege, offering access to a combination of in-house investment products and external open-architecture platforms, and leveraging CTBC Holdings resources to provide comprehensive financial services covering individual needs, family succession planning and support for entrepreneurs.
Succession planning is top of the agenda for many Taiwanese HNWIs. With this in mind, CTBC is planning to launch a family wealth governance service. “We will work with accounting and law firms to offer more complete family governance services, such as global asset allocation, family governance, business succession planning and philanthropy management,” says Amy Yang, head of the retail banking business management group.
CTBC has been at the forefront of technology adoption in the country. In 2018, the bank revamped its Home Bank app, which has become one of the most used apps in the country with 2.8m users. It has also established CTBC Brain, an internal big data platform, designed to leverage vast amounts of data to better understand client behaviour.
“CTBC Bank is going to bring digital banking to the next level via conversational banking, which enables human-like consumer banking by leveraging data and AI techniques,” she adds. PG
Best Private Bank in Thailand
Siam Commercial Bank
During 2018, Siam Commercial Bank (SCB) formed a joint venture with Julius Baer Singapore to provide UHNW clients with holistic advisory. In April 2019, the joint venture, SCB Julius Baer, received approval and licences to operate in Thailand.
The move was recognition of the cross-border nature of private wealth and the in-depth financial expertise required to manage it.
“As a private bank, we understand that an extensive product range is critical in being our client’s trusted partner to manage their wealth,” says a spokesperson. “Hence, we embarked on an aggressive product expansion programme in 2018, to enable our clients to access diversified financial solutions through us, as their trusted partner in wealth.”
An acquisition campaign in 2018 of individuals in vocations that have been identified as of high wealth potential, such as doctors, helped SCB to record 53.5 per cent growth in private clients. It claims a customer share of 70 per cent of all doctors in Thailand. “We found this sub-segment has a strong appetite for sophisticated investment, but does not have time to carefully study investment opportunities.”
The bank set up a small taskforce, experienced in serving doctors, to provide investment advisory at doctors’ workplaces.
The bank also embarked on a programme to identify ‘hidden gems’ – clients with significant or potential wealth – among its existing client base. This exercise revealed 700 such clients, who were identified by looking at the public profile of existing clients who serve on the board of SET 100 companies. HM
