HSBC Global Private Bank leverages global reach to grow ultra wealthy segment in Asia

HSBC Global Private Banking – with its global network and full suite of banking capabilities – is building on its strengths to serve the needs of such clients with tailored solutions that meet diverse needs.

The bank has delivered a strong performance in 2023 with invested assets for the Global Private Bank in Asia growing to US$166 billion, a record high.

The amount represents year-on-year growth of 18 per cent, with clients from the ultra high net worth segment contributing to over half of the growth.

And HSBC Global Private Banking is looking to build on this momentum, with key hires joining the team to drive growth, with a focus on Asian and international clients as well as entrepreneurs.

Tommy Leung joined HSBC last October and leads the Global Private Banking South Asia unit to support the ambitions of entrepreneurs, ultra-high-net-worth individuals and their families across the region and globally.

The bank has also made other key senior appointments in recent months as it works to become the leading international wealth manager in the region.

In March, HSBC appointed Kerri Lim as the head of ultra high net worth segment for Asia, and also named Pritash Mathur as head of family office coverage for Global India and Global South Asia.

This is following the recent appointment of Edith Wong as head of ultra high net worth segment for North Asia.

Leung said the ultra wealthy segment with investable assets over US$ 30 million is a key focus for the bank.

“The solutions and services such clients demand go beyond traditional private banking. This could encompass multi generational wealth planning as well as wealth preservation, along with international connectivity. These are key value propositions we have for them,” he said.

Global reach with strong Asia footprint

HSBC’s network covers more than 60 markets in Europe, the Middle East and Africa, North America and Latin America and of course Asia.

Meanwhile, the global private banking team operates in over 40 markets and 13 strategic booking centres, with dedicated Asia coverage teams in key global wealth hubs.

In Asia, HSBC Global Private Bank has presence in Singapore, Hong Kong, mainland China, Taiwan, India, Thailand and the Philippines.

“In an uncertain world, clients want to diversify, not only from a financial assets point of view, but also in terms of where they book their assets,” Leung said.

“It’s not uncommon for some of the big clients who have assets in Hong Kong, Singapore or other parts of the world to further spread out their wealth,” he added. “Our ability to support these clients with that global reach is another unique advantage that our bank has.”

HSBC Global Private Banking has a global relationship manager model whereby a single contact point acts and coordinates with other divisions of the bank to deliver a seamless client service internationally.

Indeed, the Global Entrepreneurial Wealth Report by HSBC Global Private Banking found that three quarters of the entrepreneurs have businesses operating outside of their home market. They’re driven by benefits for their business and in their personal lives and expect further opportunities to emerge in the coming years.

With an international focus, many entrepreneurs value global connections and are keeping a close eye on their next move.

Leung noted that this segment of clients typically has existing business outside their domestic borders and are very international.

Entrepreneur clients also often have varied responsibilities, including being the head of the family as well as the head of the business.

“They have many things on their mind, and they need support from a bank who can support them in these different roles,” Leung added.

Universal bank

One of HSBC’s strengths lies in its ability to provide diversified services, unlike a pure play private bank.

“HSBC has a dominant commercial bank, a strong retail franchise, and of course, the life insurance as well as the asset management business,” Leung pointed out. “The scale and breadth of our capabilities enable us to offer a comprehensive one-stop banking experience for our clients.”

Leung noted that an entrepreneur client would commonly have children attending schools or living elsewhere in the world.

“There are a few basic things we can already do for them, such as opening a bank account and helping them get a credit card even before they arrive,” he said.

Beyond retail banking needs for the family, HSBC can also deliver services for the operating business being run by the entrepreneur.

Leung noted that this may span across financing commercial real estate, advising on merger and acquisitions, and providing services for operating companies.

“Quite often, these entrepreneurs appreciate working with a universal bank with that international presence,” he said.

The global reach also means that clients have access to local expertise on exciting investment opportunities, allowing them to build diversification into their portfolios.

“Historically, clients tend to have a home bias. If you’re based in Southeast Asia, your preference is to invest in Southeast Asia,” Leung noted. But in an uncertain world, clients have learnt the necessity of having a global portfolio for diversification.

“Most clients don’t necessarily have the expertise in the US or Europe or different parts of the world, and that’s where we come in,” he said.

Beyond geographical diversification, many are also exploring other asset classes to meet their investment objectives. HSBC has also seen a rise in interest in family offices, as clients want increased flexibility, oversight, and control over their wealth.

Leung noted that some wealthy individuals that have moved over to Singapore have become interested in setting up their own family office in this part of the world.

“We not only advise them on investments, but in the very early stage, also give them advice on how to structure a family office,” he said. “We have a dedicated team called family office advisory that supports clients in this situation.”

Apart from ultra wealthy clients, the private bank is also keen to grow its relationship with those who are starting on their wealth journey.

This involves clients with between US$2 million to US$10 million in investable assets, who are moving from the retail bank to the private bank.

“We want to offer them experience and solutions that they normally do not get in the retail bank,” Leung said.

Such solutions include discretionary portfolio management, wealth planning and trust services.

As their wealth grows, they truly want a key partner to support them and work with them along this journey, he said.

Key findings of HSBC Global Entrepreneurial Wealth report

• Entrepreneurs live and work across borders.
• Three quarters have businesses operating outside of their home country or territory.
• Nearly 6 out of 10 Singapore-based entrepreneurs have an international footprint with family living across 2 – 5 markets.
• Few entrepreneurs are talking about their wealth succession plan. Nearly two thirds haven’t yet spoken to their family about their wealth succession plan.
• A third are considering a business exit within 5 years.

About the report: 973 current and former entrepreneurs were surveyed in nine markets (France, Hong Kong, India, mainland China, Singapore, Switzerland, the UAE, the UK and the US.)