Rising prosperity in Asia is leading the region’s increasing number of wealthy families to seek new opportunities globally as they aim to diversify their wealth. Four of the world’s five largest economies are forecast to be in Asia by 2030, ensuring more ultra-high net worth (UHNW) individuals will be looking for trusted partners who can guide them on their increasingly complex wealth journeys, both across geographies and investment styles.
As a leading adviser to Asia’s UHNW individuals, HSBC Global Private Banking is leveraging Singapore’s status as a key international hub to help its clients protect, preserve and grow their wealth and legacies across generations. Indeed, the city-state plays an important role in HSBC’s ambition to become the leading global private bank for Asia’s entrepreneurs.
The bank has won numerous awards for its strategy in recent years, including Best Private Bank in Asia-Pacific at the Asian Private Banker Awards for Distinction for two consecutive years, and the Best Digital Private Bank at the Asiamoney Private Banking Awards 2023 for its outstanding digitalised client experience.
“UHNW clients are looking for a trusted partner who can provide a holistic approach to wealth and multi-generational planning,” says Annabel Spring, CEO, HSBC Global Private Banking and Wealth. “And as a universal bank with a global network, we are well-positioned to play that role,” she says.
A Shifting Wealth Landscape
Asia’s growing ranks of UHNW individuals are increasingly demanding wealth planning solutions aligned with their values. In addition, many are professionalising their wealth management activities by creating family offices with more sophisticated management and compliance processes.
With an estimated US$15 trillion in wealth to be passed from one generation to the next by 2030, succession planning has also become a top priority for the wealthy in the region. HSBC Global Private Banking’s global client survey in 2022 revealed that 85% of families worldwide are already preparing the next generation to take over their businesses, with those in Greater China (90%) and the ASEAN region (86%) more active in planning for their succession compared with their peers elsewhere.
These families in Asia are investing in their businesses, health and sustainable future with broader horizons than ever. They increasingly look beyond the bottom line and seek to put purpose into their decision-making, and make philanthropy a notable tool for preparing the next generation to take over their businesses. The global growth in UHNW philanthropy reflects their desire to make a positive impact on issues like sustainability, gender parity, and equitable access to education and healthcare. The Asia-Pacific region is predicted to need US$1.5 trillion more each year to achieve the United Nations’ Sustainability Development Goals by 2030, which means global banks such as HSBC can help facilitate impactful partnerships.
Spring says: “As a leading wealth manager in Asia, we continue to advise and support our clients with solutions that fulfil their philanthropic goals to address societal needs.”
Meeting Sophisticated Needs
HSBC Global Private Banking is uniquely placed to meet the increasingly complex and evolving needs of its clients. With access to HSBC Group’s comprehensive offerings and global network, the global private bank offers clients a wide range of tailored solutions and services, encompassing wealth expertise, and access to HSBC’s services from its Commercial Banking and Global Banking and Markets arms. The Group has also recently launched HSBC Innovation Banking, following its acquisition of Silicon Valley Bank U.K. Limited, to improve how it serves entrepreneurs, as well as innovative and fast-growing firms.
Meanwhile, HSBC’s international presence, with Global Private Banking covering over 40 markets, enables its clients to explore opportunities around the world. Clients also benefit from exclusive insights and research from the Group’s investment analytics capabilities.
To provide expert advice and support across all its markets, HSBC Global Private Banking has assembled a team of dedicated relationship managers, investment counsellors and product specialists who assist with wealth planning for individuals and family offices. Meanwhile, the bank’s trust expertise garnered from over 75 years of experience working with families worldwide sets it apart from its competitors.
The bank’s deep understanding of Asia’s wealthy and the strength of its balance sheet enable it to provide bespoke financing solutions to lend against illiquid alternative assets, including substantial credit lines to family offices secured by private equity, hedge fund portfolios or trophy assets such as fine art collections.
“Our edge lies in our ability to leverage HSBC Group’s global connectivity and offerings. With deep local knowledge combined with dedicated Asia coverage teams in key wealth hubs around the world, the bank offers comprehensive services to address all aspects of our clients’ personal wealth and health journeys,” says Siew Meng Tan, Regional Head of HSBC Global Private Banking, Asia Pacific.
As UHNW clients become more tech savvy, they are increasingly looking for a digitalised, multi-channel customer experience. HSBC has made some of its innovative solutions from transaction banking available to its private banking clients, ranging from sharing investment insights through HSBC GPB Chat to eSignature, providing its clients with convenient access to their relationship managers wherever they are. HSBC is also expanding its online trading platform, which allows its private banking clients to connect with the latest market opportunities directly from their phones, including access to cash equities and exchange traded funds (ETFs) across 10 major financial markets, and foreign exchange spot and forward contracts in the 12 most active currency pairs. It is also the first in Asia to provide private banking clients with the ability to trade structured products via mobile devices.
Capturing Opportunities in ASEAN
With significant wealth and trade opportunities in the ASEAN region, Singapore is a critical part of HSBC’s strategy to become the leading wealth manager and international bank in the region. HSBC’s deep-rooted presence in six ASEAN markets puts it in a strong position to help clients capitalise on them.
“In Singapore, one of our key priorities is to help clients capture opportunities within the ASEAN region and beyond. We continue to see strong interest from across all corridors, including clients from Greater China with business interests in the region,” Tan says.
“Singapore is a natural destination for wealthy families given its multiple merits spanning strong rule of law, availability of professional talent, cultural similarities within a multi-ethnic society and a pro-business environment for many entrepreneurs,” she adds.
Reflecting its long-term commitment to the city-state, HSBC recently opened another new office in Singapore and aims to double its wealth business in the market by 2025. The bank will also continue to leverage Singapore’s unique position as a regional hub for wealth management, innovation and sustainability to meet its clients’ needs.
As wealth creation in Asia outpaces other regions, HSBC Global Private Banking is focused on expanding its capabilities and offerings in key areas and markets. The recent launch of its global private bank in India and its growing presence in mainland China, Taiwan and Thailand demonstrate the bank’s commitment to serving clients in the region.
HSBC will also continue to enhance its Chief Investment Office and investment capabilities to ensure that its clients are advised to navigate market fluctuations amid an increasingly uncertain environment. For instance, the bank has introduced HSBC Prism Advisory, an investment advisory service that combines institutional-quality portfolio and risk analytics provided by BlackRock’s Aladdin Wealth™ technology with expert guidance from HSBC advisers to help clients navigate market complexity and make more informed investment decisions.
HSBC Global Private Banking’s extensive experience, broad range of tailored solutions and global network position it as the ideal partner for wealthy entrepreneurs seeking to build and preserve their legacies over generations. As the bank continues to invest in its people and platform in key markets, it remains committed to understanding the evolving needs of its clients and tailoring unparalleled support and advice in wealth planning, trust services, family governance and international banking.
Spring says: “With our expertise and comprehensive range of solutions, entrepreneurial families can confidently navigate the changing wealth landscape and thrive with their values and purposes for generations to come.”
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