HSBC Zones in on Family Offices in Asia
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The U.K.-headquartered bank will place a much greater focus on the family office segment in Asia following the new merger of its wealth unit.
Over the next three years, HSBC will look to grow client assets in the unit at a double-digit rate, according to a report. The recent merger of the private banking and retail wealth business formed a unit that now manages around $1.3 trillion in assets globally including nearly half from Asia.
And of the broader market, HSBC will look to add greater focus on wealthier clients, especially those with sufficient assets to oversee via a family office.
With the combination, there is a big, big focus on family offices going forward,» said Greg Hingston, recently appointed regional head of wealth and personal banking at HSBC. «And it all fits within that focus around increasing penetration into the high and ultra-high net worth segments.
In addition to segment focus, the bank has also seen a boost in digital activities in the midst of a coronavirus pandemic that has reduced physical traffic and branch access.
In Hong Kong, average monthly equity and FX transactions surged 63 percent and 65 percent, respectively. Retail activities saw similar trends with 94 percent of all regional transactions in March conducted online.
Questions & Answers
Q.What is the primary strategic focus for HSBC's wealth unit in Asia going forward?
What is the primary strategic focus for HSBC's wealth unit in Asia going forward?
The bank will place a much greater focus on the family office segment in Asia. This is part of a broader strategy to increase penetration into high and ultra-high net worth segments, especially those with sufficient assets for a family office.
Q.What is the target growth rate for client assets in HSBC's wealth unit over the next three years?
What is the target growth rate for client assets in HSBC's wealth unit over the next three years?
HSBC aims to grow client assets in the unit at a double-digit rate over the next three years. This growth is anticipated following the recent merger of its private banking and retail wealth businesses.
Q.How much in assets does the newly merged wealth unit manage globally, and what proportion of this comes from Asia?
How much in assets does the newly merged wealth unit manage globally, and what proportion of this comes from Asia?
The recently merged wealth unit manages around $1.3 trillion in assets globally. Nearly half of these managed assets originate from Asia, highlighting the region's significance to the unit.
Q.Has there been any notable change in digital activity for HSBC during the pandemic?
Has there been any notable change in digital activity for HSBC during the pandemic?
Yes, the bank has seen a boost in digital activities amidst the pandemic, which reduced physical traffic. For example, monthly equity and FX transactions in Hong Kong surged 63 percent and 65 percent respectively.