Singapore: hsbc Holdings Plc is ahead of its target for its Chinese retail wealth management business and is re-entering India’s private banking business, senior executives said, as part of its plan to make Asia and wealth a key pillar of growth. In.
Under a strategy led by Group CEO Noel Quinn, HSBC is investing $3.5 billion in its wealth and personal banking business, in line with its ambition to become Asia’s top wealth manager by 2025.
“We are the leading international bank in China, so we want to squeeze that opportunity,” said Nuno Matos, CEO of Wealth & Personal Banking, one of four top executives to move from London to Hong Kong this year as part of the bank’s regional pivot. since a.
“On the private banking side, we are now in clear expansion mode,” Mattos told Reuters in his first interview since moving into the sector.
Asia is the largest region for HSBC, and the wealth and personal banking unit contributed 44%, or $22 billion, to London-headquartered HSBC’s adjusted global revenue last year.
Matos said the bank wants to boost its mobile wealth planning service, HSBC Pinnacle, in China by producing around 700 personal wealth planners instead of 550 by the end of the year.
HSBC’s asset management services include investment, insurance and asset management products, while private banking meets the needs of people with investable assets of $5 million or more.
The bank had 20 people working in China’s onshore private banking business at the end of last year, said Siew Meng Tan, head of HSBC Private Banking for Asia Pacific.
“By the end of this year, we will be 64 and by the end of next year, we will double that,” she said.
HSBC is looking to re-enter onshore private banking in India, where the ranks of the super rich are rising rapidly and record high stock markets have created billion-dollar start-ups.
HSBC exited the Indian private banking business in 2015 as part of a group strategy. There are few foreign players in the lucrative but very competitive Indian market.
“We want to bring in massively affluent and high net worth customers to the bank. At this point in time, the two key pillars we are expanding in India are insurance and asset management,” Matos said.
“On the private banking side, we are not there yet and it is something that calls for a strategic decision this year.”
Currently, HSBC is focusing on catering to wealthy Indians from its global hubs in Singapore, London and the Middle East.
‘Compelling Opportunity’
Matos said HSBC is also looking to expand its presence in Singapore and Southeast Asia. In August, the bank bought French insurer AXA’s Singapore assets for $575 million.
Although HSBC has a major Asia presence with retail banking, particularly in the financial center of Hong Kong, global leaders such as UBS and Credit Suisse rule the market for wealthy clients.
Global wealth managers remain optimistic about their growth prospects in China, despite unprecedented regulatory action in the world’s second-largest economy.
In a global wealth report published in June, Boston Consulting Group said Asia’s wealth management revenue pool will grow faster than any other market worldwide, nearly doubling to $52 billion over the next five years.
“Asian wealth is growing twice as fast as the rest of the world. This is an attractive opportunity for us,” said Matos, who took charge of HSBC’s new combined division in February.
“I am not going to redo my goals now, but what I can say is that in 2021, we will distribute our goals in favor of money,” he said.
Matos said after announcing plans to buy its life insurance joint venture partner in China last year, HSBC is keen to gain full control of its asset management company in the country.
Under a strategy led by Group CEO Noel Quinn, HSBC is investing $3.5 billion in its wealth and personal banking business, in line with its ambition to become Asia’s top wealth manager by 2025.
“We are the leading international bank in China, so we want to squeeze that opportunity,” said Nuno Matos, CEO of Wealth & Personal Banking, one of four top executives to move from London to Hong Kong this year as part of the bank’s regional pivot. since a.
“On the private banking side, we are now in clear expansion mode,” Mattos told Reuters in his first interview since moving into the sector.
Asia is the largest region for HSBC, and the wealth and personal banking unit contributed 44%, or $22 billion, to London-headquartered HSBC’s adjusted global revenue last year.
Matos said the bank wants to boost its mobile wealth planning service, HSBC Pinnacle, in China by producing around 700 personal wealth planners instead of 550 by the end of the year.
HSBC’s asset management services include investment, insurance and asset management products, while private banking meets the needs of people with investable assets of $5 million or more.
The bank had 20 people working in China’s onshore private banking business at the end of last year, said Siew Meng Tan, head of HSBC Private Banking for Asia Pacific.
“By the end of this year, we will be 64 and by the end of next year, we will double that,” she said.
HSBC is looking to re-enter onshore private banking in India, where the ranks of the super rich are rising rapidly and record high stock markets have created billion-dollar start-ups.
HSBC exited the Indian private banking business in 2015 as part of a group strategy. There are few foreign players in the lucrative but very competitive Indian market.
“We want to bring in massively affluent and high net worth customers to the bank. At this point in time, the two key pillars we are expanding in India are insurance and asset management,” Matos said.
“On the private banking side, we are not there yet and it is something that calls for a strategic decision this year.”
Currently, HSBC is focusing on catering to wealthy Indians from its global hubs in Singapore, London and the Middle East.
‘Compelling Opportunity’
Matos said HSBC is also looking to expand its presence in Singapore and Southeast Asia. In August, the bank bought French insurer AXA’s Singapore assets for $575 million.
Although HSBC has a major Asia presence with retail banking, particularly in the financial center of Hong Kong, global leaders such as UBS and Credit Suisse rule the market for wealthy clients.
Global wealth managers remain optimistic about their growth prospects in China, despite unprecedented regulatory action in the world’s second-largest economy.
In a global wealth report published in June, Boston Consulting Group said Asia’s wealth management revenue pool will grow faster than any other market worldwide, nearly doubling to $52 billion over the next five years.
“Asian wealth is growing twice as fast as the rest of the world. This is an attractive opportunity for us,” said Matos, who took charge of HSBC’s new combined division in February.
“I am not going to redo my goals now, but what I can say is that in 2021, we will distribute our goals in favor of money,” he said.
Matos said after announcing plans to buy its life insurance joint venture partner in China last year, HSBC is keen to gain full control of its asset management company in the country.
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