HSBC to open 3 wealth centres in Singapore by Q1 2025 as part of pivot to wealth banking

HSBC plans to open three wealth centres in Singapore by the first quarter of 2025, as part of its strategy to build its international and wealth propositions.

The bank is increasing its investments fivefold in its physical network, as it pivots its branches into wealth centres “to facilitate comprehensive wealth conversations with clients”, it said on Tuesday (Jun 4).

The three centres will be in the central business district (CBD), as well as the east and west regions of Singapore. The first centre will open in the CBD in June.

Ashmita Acharya, head of wealth and personal banking at HSBC Singapore, noted that the wealth hubs will focus more on client conversations and events, and less on cash transactions.

HSBC is also looking to take its wealth and health proposition to the wealth hubs in the future, although not immediately.

While the bank currently has a wealth hub at Claymore Hill near Orchard Road, Acharya noted that the existing hub is “more traditional” in the way it is structured.

Acharya said: “We want to create a space where clients are comfortable, not just coming in for a transaction and leaving fast.”

HSBC is not the first bank in Singapore – local and global – that has revamped its branches and wealth hub offerings in recent years.

But Wong Kee Joo, chief executive of HSBC Singapore, said: “Later doesn’t mean worse off.”

He noted that the bank has learnt from other wealth hubs that have been set up. It has also studied the needs of its customers to design its wealth offerings.

Wong noted that one of the bank’s unique propositions is that it has an insurance company, HSBC Life, integrated into its business, can help cater to health needs of customers on top of wealth needs.

HSBC as a universal bank also allows it to serve its customers across segments, he said.

For example, the bank can provide wealth management solutions for its commercial banking clients, which are often businessmen with wealth needs as well.

Another differentiator is its international connectivity, Wong added. The bank has a presence in 60 markets.

“Many banks are downsizing their footprint globally but we’re still relevant for many of our clients in the countries where we have the scale, and we’re able to connect them,” Wong said.

Acharya added: “A wealth centre is a space. In the end, it is the quality of our client-facing people that is going to be the differentiator, and that’s what we’re investing a lot of time and effort in.”

HSBC plans to increase client-facing roles – including relationship managers and specialists – in Singapore by more than a third by 2028, to sustain growth momentum.

HSBC also plans to increase client-facing roles in Singapore by more than a third by 2028, to sustain growth momentum.

International customers accounted for 40 per cent of the group’s wealth and personal banking revenue in 2023, the lender said.

In Singapore, HSBC had a 76 per cent on-year increase in new-to-bank international customers in 2023, amid new digital onboarding journeys and an expanded range of wealth solutions.

The bank also had a double-digit growth in client numbers in Singapore for its mass affluent and high net worth segment from 2019 to 2022, with the rate continuing to grow in 2023.

The lender is looking to grow its offerings across its whole wealth continuum – from mass market to affluent, to high net worth and ultra high net worth individuals.

Wong said the bank is hoping to create new propositions based on client needs, including more demand for wealth preservation and legacy planning.

“(The bank will try to create) something that’s exciting, or not run of the mill, or that someone has done before. The ability to learn through this process and drive towards that, is clearly going to create a lot more excitement in the market,” he added.