Refocusing on talent in private banking in Asia

THE Credit Suisse Research Institute projects that household wealth in Asia-Pacific will grow at an annual rate of 8.3 per cent to reach US$111 trillion by 2019, with the regional share of global wealth increasing to 30 per cent. The number of millionaires in Asia-Pacific is also expected to rise by around 9 percent per annum or 68 per cent to 11.7 million, faster than the global growth rate of 53 per cent. China could see its number of millionaires nearly double to 2.3 million, while markets like South Korea, Indonesia, Hong Kong, India and Singapore should also post strong growth in millionaires of 50 to 70 per cent.

The steady expansion of private wealth in the region bodes well for Singapore as it continues to be strongly positioned as a key regional management hub. Indeed, assets managed by Singapore-based asset managers including private banks, grew by around 13 per year between 2008 and 2013, according to official statistics.

However, the robust asset growth masks some of the challenging business and operational conditions for some private banks. The heterogeneity of the region's diverse markets makes wealth not easily accessible; combined with a low interest rate environment, an increasingly complex and demanding global and local regulatory landscape, significant investments required in technology and platform, regulatory compliance and front talent acquisition, this has elevated operating costs and added formidable pressures on profitability.