Going forward, HSBC will invest US$100m in the next two years to further enhance its digital platform and advisory engine.

HSBC Global Private Banking (PB) for ultra & high-net worth individuals (U-HNWI) serves clients in North Asia and throughout the area via onshore hubs in mainland China, Hong Kong and Taiwan, plus there are other Asian onshore hubs further afield in Singapore and Thailand. Clients can additionally access HSBC’s worldwide universal banking services, including lending, corporate finance, capital markets in London and globally. Its comprehensive approach and group-wide capabilities won it the Outstanding Global Private Bank: North Asia trophy at the virtual PBI Global Wealth Awards 2021.

The HSBC Group has 4000+ offices in 64 countries, but it never forgets its local offer, and it partners where it is in the best interests of clients wanting to access deals. Dedicated wealth advisory teams in North Asia include relationship managers (RM), investment counsellors (IC), product specialists, credit advisors and wealth planners (WP) in China, Japan and elsewhere, all assigned to serving providing expertise and helping PB clients in the region.

The wealth planning & advisory (WPA) and trust & fiduciary services (TFA) units have served generations of Asian families with a full range of wealth structuring and advisory services, including succession planning, family governance, family office, philanthropy and trust administration.

Despite the Covid-19 pandemic, which necessitated extensive use of its digital platform and its flagship Investment Outlook events going virtual, HSBC Global PB Asia still recorded growth in client assets of 16% and growth in investment revenues of 24% last year. Its aim is to be the biggest wealth manager (WM) for U-HNWIs in Asia over the next five years, with a target of more than 10% compound annual growth rate (CAGR) in revenues and profit before tax (PBT).

Towards this goal it has grown UHNW and its Total Client Position (TCP) revenues respectively by 15% and 7% last year versus 2019 figures. This growth is thanks to a team that offers tailored asset class agnostic solutions and provides differentiated investment ideas, customized hedging solutions and innovative financing alternatives, to cater to its clients’ sophisticated needs. In 2021, the bank unveiled a new Institutional Family Office for family clients, for instance, providing easier access to its Global Banking & Markets (GBM) capabilities to access institutional markets and private deals that once would have been out of reach. Other ways it intends to grow are by:

  1. Leveraging its universal banking model to feed its PB: collaborating with HSBC businesses globally works. Commercial banking and global markets brought in 48% of new net money in 2020 – see example above for how the model works – and enhanced product capabilities allow easy access to finance, asset management tools and so on, while retaining PB advice and skills.
  2. Emphasizing its PB coverage area & Asia International Connectivity Team: extensive Chinese language skills and Asian experience means the connectivity team can connect clients to offices and capabilities in the UK, Switzerland, East / West coats of America and elsewhere around the world, helping them to acquire assets and real estate overseas. For example, in 2020 a UHNWI in Hong Kong was helped to acquire a trophy property asset in London, securing an 8-figure amount of net new money for the business.
  • Digitalization: Since the second half of 2020, HSBC has accelerated its digitalization delivering many new platform enhancements and upgrades, including: An online trading platform for cash equities.
  • Real-time transfers between retail and PB accounts.
  • A digital platform for market update videos and audio conferencing, which was especially useful during the Covid-19 outbreak.
  • A new portfolio and risk analytics system for our advisory business.

Going forward, HSBC will invest US$100m in the next two years to further enhance its digital platform and advisory engine.

 

The Private Banker International Global Wealth Awards is an annual platform that celebrates the most impressive and successful initiatives from private banks and wealth management companies who have deployed market leading, disruptive approaches to deliver globally recognized, industry changing strategies and products.