HSBC poised to open up a world of opportunity

HSBC remains steadfast in its ambition to become the region's leading private bank by 2025. It is doubling down on a more focused approach towards meeting the wealth management needs of its clients. To achieve this, HSBC needs to be organised in a way where it can seamlessly support the wealth needs of its clients, regardless of where they are located, says Philip Kunz, Head of Global Private Banking for South Asia, HSBC.

Client coverage model

With Singapore at the heart of international wealth and business, HSBC has established a strong coverage team here to serve clients in the region.

"Singapore has always been an important wealth hub for HSBC as it is a sound and progressive financial centre of international repute in the region. These developments continue to present ample onshore and offshore wealth growth opportunities for the bank," says Kunz.

Tasked with the challenge of overseeing all the relationship management teams that are supporting regional and Australian clients is veteran private banker Chris Harwood, who is the Global Market Manager for ASEAN and Australia.

Meanwhile, seasoned private bankers Chan Eng Chien, Global Market Manager for offshore Taiwan and Anthony Hingley, Market Coordinator for Global India, MENA and Europe are tasked to manage and deepen overseas Chinese including those based in Hong Kong and China, non-resident Indians and international client relationships from Singapore.

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"Our current coverage model makes it easier for our clients to start a relationship with us but more importantly, enables us to manage their assets holistically and maximise the international connectivity that makes HSBC so special," says Kunz.

Such focused teams will also allow HSBC to consistently place unique capabilities on the ground to service its international clients, who are typically highly mobile.

"Ultimately, this coverage model enables us to truly put our clients' best interests at the heart of everything we do," says Kunz.

HSBC is also investing heavily in its people, with plans to hire more than 5,000 customer-facing wealth roles in the next five years, including relationship managers, investment counsellors and specialists to better support its well-heeled clients in Hong Kong, Singapore and China.

Asia's wealth powerhouse

While Asia has an estimated US$34 trillion of onshore personal financial assets as at end-2019, wealth management advisory and financial planning remain underpenetrated in Asia, as managed assets represent just 15 to 20 per cent of the region's personal financial assets.

Against this backdrop, HSBC had in 2021 launched the new Institutional Family Office service in Hong Kong and Singapore to tap the growing number of Asian clients who are turning to family offices for succession planning and wealth management services.

"This is expected given the task of creating meaningful legacies for Asia's affluent families has become more complex and challenging as their businesses grow and extend beyond their home markets," says Kunz.

The service allows single-family office clients access to the bank's investment banking specialists and solutions, on top of private banking benefits.

As the bank continues to grow its market share in the region, it has rolled out a number of initiatives to better serve clients with international wealth needs.

This includes the introduction of offshore Vietnam coverage to serve the private wealth needs of small and medium-sized enterprise (SME) business owners, the launch of a dedicated Independent Asset Managers (IAMs) desk to meet the needs of family offices and the establishment of an onshore presence in Thailand.

Meeting new needs

HSBC is also well-positioned to meet the new demands of an emerging new generation of clients. While younger and more savvy clients still desire personalised and innovative investment solutions, they are also seeking a degree of autonomy - to have a say in opting for products and services that best align to their values.

HSBC has therefore been ramping up efforts to create simpler, more insightful and personalised client journeys, while giving its employees the tools needed to provide clients with best-in-class services.

HSBC Global Private Banking expects to invest about US$100 million in Asia over a two-year period to build and innovate the core banking and digital platforms to meet the fast-evolving wealth and lifestyle needs of clients.

The change in investment attitudes among Asian clients also comes as the next generation of investors begin to get more involved in their family businesses as well as how their family's wealth and legacy are managed, says Kunz.

The new and rising generation is increasingly driven to influence the world and exert a positive social impact, Kunz notes.

"As such, our goal is to give this unique group of individuals the support they need to plan strategically for the wealth and businesses they will come to manage or influence in time," he says.

To this end, HSBC has launched key initiatives such as the Next Generation Conference and the Next Generation Sustainability Leadership Programme, which are platforms for clients to network and exchange ideas.

Sustainability goals

The looming climate crisis has also come into greater focus in recent years. Global companies are constantly being challenged to address the significant financial, social and environmental impacts of climate change.

"Governments across the globe are moving to address pressing climate issues with green taxonomies and carbon neutrality plans for green and sustainable industries. This creates nascent opportunities for investors to grow their assets in tandem with the emerging trend," says Kunz.

"We remain committed to do our part to help clients from across the wealth continuum to not just build sustainable wealth, but also understand the impact of ESG issues on the community as well as the role that they can play," he adds.

As demand for sustainability-related investments grows, HSBC will continue to widen its ESG solutions to channel capital and investments into this space and to drive the net-zero transition.