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Credit: HSBC Bank
Singapore is a global business hub, and it seems that HSBC has recognised this point as it plans to open three wealth centers by the first fiscal quarter of 2025. These wealth centers are part of the bank’s strategy to build its international and wealth propositions, and will be located in the Central Business District, and the east and west regions of Singapore.
HSBC is also pivoting its branches to wealth centers. A bank’s wealth center differs from a branch as it focuses on providing specialised financial services and personalised advice to affluent clients.
International appeal
Opening up wealth centres in Singapore will most obviously aid HSBC’s international propositions.
HSBC is aiming to be a leading wealth manager in Asia. As the bank works toward improving the value it can provide its customers, it has also doubled its technology investments in Singapore over the last five years and increased investment into its physical network by 500%.
Such investment in international markets is crucial, as HSBC’s presence spans 60 markets, and its international customers count for 40% of wealth and personal banking revenue at the group level in 2023. Of these international markets, Singapore is a rapidly growing one.
HSBC serves clients across the wealth continuum, including mass, affluent, high net worth, and ultra high net worth, with services such as retail banking and global private banking insurance. Among the mass, affluent, and high net worth sectors, HSBC has seen double digit growth in Singapore since 2019. To sustain this growth, it is increasing client-facing roles by a third in 2028.
By opening up wealth centers in Singapore, the bank demonstrates its willingness to invest in a long-term relationship with Singapore, and expand the growth of its wealth assets in the Asian market.
Wong Kee Joo, CEO of HSBC Singapore, said, “Since HSBC established its presence here in 1877, our purpose has always been to connect our customers to opportunities. Our substantial investments have set the stage for future growth, enabling us to better support the needs of our clients.”
“As Singapore grows as an international financial centre and international wealth hub, HSBC is uniquely placed to meet the wealth and international banking needs of our clients through the scale and breadth of our network and capabilities.”
Adding value to customer’s wealth
To further attend to the needs of its clients, HSBC has also engaged in selective acquisitions and partnerships, and increased its offerings to attract customers.
One such selective acquisition was completed earlier this year, when HSBC Asset Management acquired Singapore’s SilkRoad Property Partners Group. In doing so, HSBC gained staff and offices from Singapore, Hong Kong, Shanghai, and Japan. SilkRoad Property Partners’ expertise in Asia’s physical commercial real estate adds dimension to the bank’s overall investment capabilities, and better positions it to advise clients on investment in that field.
HSBC has also implemented organic initiatives to target companies, and indivduals. Last year, the bank entered a 15-year exclusive distribution agreement with MSIG Insurance. In this way, retail and corporate banking clients can select from a wide range of general insurance propositions covering retail and commercial lines.
For individuals, the bank’s Global Private Banking has enhanced its ultra high net worth services, so that institutional Family Offices will have better market access and execution capabilities to meet their wealth transfer, legacy planning, and more complex investment needs.
Ashmita Acharya, Head of Wealth and Personal Banking at HSBC Singapore, said, “We want to be the wealth manager of choice for affluent Singaporeans and international professionals.”
“We’ve been focused on elevating the customer experience across our channels and building a differentiated proposition that supports our client’s wealth, health and international banking needs – from growing and protecting their wealth, to planning for their family, their children’s international education, and the next generation.”
The efforts put in by HSBC seem to be paying off, as HSBC was ranked first for wealth continuum in Asia by Asian Private Banker Asia 2023 League Table, and ranked second for private banking in Asia by assets under management. Their investment into Singapore is another step towards the company’s aim to be a leading bank in Asia.
