ASIA: Bank of Singapore to hire more relationship managers and increases entry threshold

Bank of Singapore, Oversea-Chinese Banking Corporation’s (OCBC) private banking arm, was recently ranked seventh among private banks in the region in terms of assets under management (AUM) and aspires to rank top three for profitability. They plan to achieve this by allowing their bankers to work on providing better service to fewer high-net worth customers.

Currently, the bank is focusing on Hong Kong where it hopes to acquire offshore money from China and are avoiding mainland China directly due to stiff competition.

They will be increasing their entry level threshold for its wealth services, currently at $2 million, to $5 million gradually over the next few years with an initial increase to $3 million next year. They also plan to hire more relationship managers to aid in achieving their goals. According to RFi data, about 7% of the affluent in Singapore have investible assets of more than $2 million and only 2% have investible assets of more than $5 million.

This increase is in line with other private banks or private banking arms such as Standard Chartered’s private banking arm which increased its client entry level from 2 million to 5 million this year.  P Morgan’s increased its minimum entry level to $10 million from $5 million in 2016. This will indeed allow bankers to concentrate on a smaller albeit wealthier group of high-net worth individuals which would allow them to commit more time to each customer thus providing a higher quality of service.

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