HSBC Holdings Plc is now on a mission of targeting to bring in its fold the richest people residing in the fastest growing region of the world in terms of generation of wealth.
According to Tan Siew Meng, Asia Pacific head of global private banking of the London-based bank, a team top cater to and target as clients the ultra-high-net-worth team in Asia is being created by the bank. Such prospective clients would typically possess assets of about $30 million or more. The process of hiring executives for that team would also add on to the announced plans of the bank to hire a total of about 700 people for its private banking division in Asia by the year 2022. While it is known that HSBC has hired at least two veterans for the new unit, no further details about the staffing was provided by Tan.
The Chief Executive Officer John Flint has formulated plans to expansion of the bank in markets ranging from Greater China to Southeast Asia and the area of private banking in Asia is one of the strategic priorities of the bank and a part of the expansion plans of the bank. Even though the richest in Asia had been hit hard during the meltdown of the stock market in late 2018, wealth managers across the world are banking on the richest in Asia to increase their profitability.
“If we’re going to be able to achieve the ambitious growth plans that we’ve got, clearly we need to be able to address the ultra-high net worth segment very well,” Tan said in an interview in Hong Kong.
HSBC said in an emailed response to queries by the media that the appointment of Gabriel Tam as the Asia head of UHNW solutions to cater to the needs of clients with HSBC’s products which are part of the private bank and investment bank of the bank. Tam is an ex employee of the Bank of America Corp. The head of UHNW segment management for the bank who had been recently appointed is Erik Bergqvist, who earlier worked with the Julius Baer Group Ltd.
Those private bankers that have already targeted and are currently catering to the richest wealth management customers in Asia include names such as Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co.
According to a report by Knight Frank LLP, by 2023, about one third of the total number of billionaires of the world would come from Asia where, it is expected, there would be an increase of such rich people by 27 per cent to reach 1003. 17 per cent and 18 per cent are the billionaire population growth rates for North America and Europe respectively.
According to reports, the highest relative increase in ultra-high-net-worth individuals would also happen in Asia. These are people who have net assets of $30 million or more. The Knight Frank report predicted that this list would be led by India globally with a growth rate of about 39 per cent, followed by the Philippines and China.
(Adapted from Bloomberg.com)