In a wide-ranging conversation about growth in RMs, a higher minimum AuM requirement needed to become a client, service for independent asset managers and more, this news service talks to one of the senior figures at Bank of Singapore.

Bank of Singapore’s (BoS) status as a regional bank is gaining traction at a time when Asia-based investors are becoming increasingly comfortable with being served by local players. The attractions of foreign banks aren’t as compelling as they used to be. 

That’s the view of Rickie Chan (pictured), chief executive and head of private banking for Greater China, Hong Kong branch, at Bank of Singapore. Chan has been in the job since February, having moved from Credit Suisse, where he worked for just over a decade, and prior to that, at Barclays and Goldman Sachs.

And BoS, part of Oversea-Chinese Banking Corporation (OCBC), intends to expand its assets under management significantly over the next two years. It isn’t just looking at a simple rise in the AuM total, either. It wants to increase the quality of those assets as investors shift further into areas such as alternative assets, and as clients seek more advice and guidance in a complex world, Chan told this publication in a recent call. 

For the bank’s Hong Kong branch, it is targeting AuM growth of 50 per cent from the start of 2024 to end-2026. BoS does not disclose its AuM; for OCBC, its group wealth management AuM was S$273 billion ($203 billion) in the first quarter of 2024.

“You can’t be half-hearted in this space and must be interested in the task and the people. Some banks are just looking for short-term returns. We are a regional bank bearing the Singapore name. Clients want to diversify their assets and many clients want to open an account with us,” Chan said. 

“I have been at the bank for more than four months and I am struck by the people I work with. I can see the optimism and people here are really excited. I love to see it,” Chan said.

In Hong Kong, over the last six months, BoS has grown its roster of private bankers by around 20 per cent. With about 450 RMs currently working for the entire bank – not just for Hong Kong – BoS hopes to reach a total of 500 by the end of 2025, Chan said. 

Besides Chan’s own arrival, the firm has been busy with hires. For example, it appointed former LGT senior figure Jibu George as its compliance head in the DIFC branch, Dubai. It also appointed Credit Suisse senior figure Ronnie Cheung as Greater China chief operating officer, Hong Kong branch. 

Shifting market
While in the short run, the fallout from the demise of Credit Suisse as a standalone bank – now part of UBS – might have played a part in encouraging clients to seek new arrangements, there are more significant, longer-term forces at work influencing how HNW and ultra-HNW people choose which bank to use, he said. 

Chan, who has been in the private banking business for three decades, noted how US banks initially dominated the market, and then the Swiss/European houses did so. In the past five to 10 years, however, Asian banks are raising their profile, offering and market presence. “This is a trend and not just [caused by] one incident,” Chan said.

“With Asian banks you get a different perspective: they know Asian values and the culture,” he continued. Such banks are also more agile.

Bank of Singapore office in Singapore

UHNW segment
The bank already serves a number of UHNW clients, but wants to increase its share of wallet by enhancing its offerings. “There is huge potential for the bank here in the years to come,” Chan said. 

Elsewhere, while some banks are scaling back their financial intermediaries offerings, BoS sees this as an important field to engage in, he said. 

Higher minimums
As part of its operating policiy, BoS recently raised the minimum qualifying AuM requirement for clients from $3 million (US dollars) to $5 million. 

“We have observed more people entering the ranks of the wealthy, and the wealthy themselves are getting richer. More wealth is being generated in Asia either through investment returns or through economic and business growth in the region. This growing wealth will necessitate a need for more and better wealth advice and management,” Chan said. “Raising the minimum sends a signal that we are positioning ourselves to serve the high and ultra-high net worth clients with a differentiated proposition from other Asian private banks.”

BoS has created a dedicated unit to capture the opportunities arising from two strategic business pillars: first, the boom in family offices and Next Gen wealth transfer and second, the rapid growth of independent asset managers.

“Financial intermediaries has been one of our fastest-growing businesses, nearly doubling from 2020 to 2023. We are building a centralised team of experts in all three hubs who will deal only with FIMs and are specialised in their needs and challenges. We see this as a strategic business and are committed to growing our partnership with and support for the independent asset managers,” Chan said. 

Chan said the firm saw a 30 per cent year-on-year growth in the number of single-family offices clients in Singapore in 2023. “Similarly in Hong Kong, there has been good momentum in our engagements with family offices,” he said. 

Although Chan did not refer to any bank by name, one example of a lender that has pulled in its horns somewhat on EAMs is HSBC, as reported by this new service.

Tech and AI
Turning to other topics, Chan said technology is a “significant part” of the bank’s strategy. 

“We want to enhance clients’ experience and our digital banking platform. We recently launched a refurbished version of our mobile [private bank] app and the response from clients has been fantastic,” he said. (The app is called Bank of Singapore Digital Services.) Since the app was revamped in January, monthly active users increased 30 per cent in the space of three months; online trades being placed rose almost 50 per cent. Today, almost 90 per cent of BoS clients use the app.

Bank of Singapore is also introducing a Relationship Manager (RM) Copilot powered by generative artificial intelligence to help advisors serve clients more effectively and efficiently. It includes a Gen-AI dashboard that amalgamates chief investment officer content across equities and bonds; there is also chatbot as a prompt and to retrieve information.