AI adoption helps optimize services.
In 2022, the top 10 largest private banks in the Asia-Pacific region (APAC) saw their assets under management (AUM) decline by $209 billion (11.7%) amid a turbulent year for global capital markets.
However, according to estimates from Accenture, AUM has rebounded this year as private banks compete for a share of Asia’s estimated $216.6 trillion of investor wealth, with $20.9 trillion held by ultrahigh net worth investors.
Advisory capability and the ability to navigate volatile offshore and onshore markets with asset selection are more crucial than ever. APAC private banks aim to more than double AUM and grow revenue by more than 60% by 2025.
APAC private banks are increasingly relying on “phygital” (hybrid physical and digital) relationship managers (RMs), who use artificial intelligence (AI) to optimize advisory services, boost revenue, and reduce cost-to-income ratios. This approach allows RMs to serve more clients more efficiently than standard physical models.
Best Private Bank In Asia-Pacific
Best Private Bank Digital Solutions For Clients: DBS Private Bank
DBS Private Bank excels in Singapore’s shifting financial landscape, with a substantial 76% of recent client growth coming from international clients across the globe. The bank’s exceptional metrics include a 20% rise in total income for 2022, driven by record net new money inflows and one of the industry’s lowest cost-to-income ratios, at just 46%.
The bank actively participates in Singapore’s thriving single-family office (SFO) boom, attracting many SFOs established in the city-state. Additionally, DBS has introduced a multifamily-office structuring proposition that leverages Singapore’s variable capital company regime.
Clients monitor portfolios and receive AI-powered insights through the DBS digibank – wealth app, with an impressive 90% of clients using it to trade 24/7. Contrary to regional trends, the bank also expanded its RM pool by 5% in 2022.
DBS’ unique “one-bank” proposition harnesses its commercial and investment banking capabilities, offering business owners access to Singapore’s economic success story through local expertise and connections.
The private bank’s phygital approach combines RM expertise with data analytics, AI, and machine learning to redefine the client experience. RMs receive AI-guided “nudges” for client engagement, leading to increased adoption of wealth planning solutions. These nudges are delivered through the DBS digibank – wealth app, with 90% of clients actively using it to monitor portfolios and trade.
Best Private Bank For Sustainable Investing: Westpac Private Bank
Like its APAC counterparts, Westpac Private Bank has witnessed growing demand for investment products aligned with environmental, social, and governance (ESG) concerns, especially from its millennial client base. The bank addresses this demand with a thematic approach, offering tailored investment opportunities typically reserved for institutions that cater to private bank clients.
For instance, the Global Energy Transition theme focuses on wind and solar energy and battery assets, emphasizing capital preservation and consistent cash flow generation.
In sustainable investing, Westpac Private Bank stands out as the first major Australian retail broker to introduce ESG risk ratings for individual companies, a collaborative effort between Westpac’s Private Wealth product development team and Sustainalytics. These ratings enable clients to assess the economic impact of ESG factors on companies.