Singapore-based banking group have agreed to expand their 18-year partnership, and build “the next generation of wealth management capabilities” for the Asia market.
The firms announced on Friday that they had signed a memorandum of understanding. The organisations will collaborate across three areas: enterprise growth, co-innovation, and capability building exchange, according to a statement.
DBS wants to grow its retail and wealth assets under management to S$1 trillion (about $782 billion) by 2030, and make it easier for advisors and specialists to serve the firm’s “wealth continuum.”
“Avaloq has been a critical enabler for our wealth management operations for the past 18 years. This latest partnership brings together DBS’ wealth and investment expertise with Avaloq’s platform and data capabilities to co-create solutions that can swiftly address the evolving needs of our customers and advisors,” Shee Tse Koon, group executive and head of consumer banking and wealth management, DBS, said.
The statement made a point that is familiar in Asia: demand for professional investment advice is rising in the region even while the sector has a talent shortage. Seven in 10 investors already have an assigned wealth advisor, while more than four in 10 investors without one say they would like one, Avaloq said in a report issued on 9 September.
“As wealth creation accelerates, the wealth management industry will not only have to grow its talent pool across the front and back offices but also augment every individual through technology, data and stronger ecosystem partnerships,” the statement said.
Under the MoU, DBS and Avaloq will explore the broader deployment of the Avaloq platform across DBS’ markets and business lines, tailored to different market needs. The two firms will also explore the joint development of capabilities and solutions spanning digital platforms, products, execution and future wealth management models.
Potential initiatives include learning programmes, knowledge-sharing sessions, cross-functional exchanges and broader industry engagement.
Martin Greweldinger, group chief executive officer, Avaloq, said: “Together, we plan to expand into new markets, deepen coverage across business lines, co-create the next generation of wealth technology and equip tomorrow’s wealth-management talent with the skills needed for an increasingly AI-enabled industry.”