A revolution is coming in the high-net-worth (HNW) segment of private banking, thanks to technology – notably artificial intelligence. And DBS is making the most of it.
AI will help private banks do an array of things much better, such as finding new customers. It will also help them deliver increasingly bespoke yet cost-effective services to more clients in the HNW wealth segment.
This might be seen as the Holy Grail of private banking. Traditionally, HNWs don’t have enough wealth to play with, so do not get the kind of special attention from private banks demanded by the ultra-wealthy or family offices.
AI turns this thinking on its head. If it can help a single relationship manager serve 120 high-net-worth clients, rather than half that number, the ball game shifts. By crushing the cost factor, be it on risk controls, human resources, or the formation of new services or funds, HNWs become a far more desirable client demographic.
Only a select few firms, who truly understand technology, will benefit from this revolution. And it’s where this year’s global winner of the award for best for HNWs enters the fray. “Going digital allows RMs to serve more clients while at the same time providing greater value-add, such as bespoke insights augmented by AI, without losing the personal touch,” says group head of DBS Private Bank Joseph Poon.
This is the second win in a row for the Singapore financial institution. DBS won this global award last year. We cited its impeccable Asia credentials – it is present and growing in most of the regional markets that matter, including China, India and the vast sweep of southeast Asia, with Singapore at its heart.
We noted its increasingly global reach: it serves the evolving needs of HNWs in 115 countries and territories, helping clients navigate a complex regulatory environment, often in multiple languages. None of that has changed. DBS is named Asia’s best private bank this year, as well as the region’s best for HNWs and for family-office services.
It’s a reminder that, however far the bank ventures, it will always remain in its heart and in its mind an Asia operator. “Our clients come from more than 120 markets around the world, and they choose us not just for our world-class banking capabilities… but also because they trust us as a safe pair of hands to manage their assets and legacy,” says Poon.
“Beyond that, they are drawn to our unique One Bank approach and the strength of our corporate banking franchise, which enables them to expand their business across Asia,” he adds.
More and more, clients want a bank that will be here for them whatever happens, given the upheaval in the wider world. As DBS notes in its pitch document, the population of millionaires in China and Japan will more than double by 2030, while the number of adults in India with at least $250,000 in individual net wealth is projected to triple to 60 million by the end of the decade.
Wealthy clients gravitate to DBS for many reasons. Many are attracted to its stability, corporate banking franchise, research and multi-market presence
No other lender is better positioned to serve this seismic shift. A key facet of this is the $5.8 trillion wealth transfer set to take place in Asia in the second half of the decade. “As Singapore’s leading family-office practice, we are confident in attracting new clients who will want to bank with us during this upcoming wave of wealth transitions between generations,” says Poon. “For those looking for a bank that’s safe, highly digital, and here for the long term, here we are.”
Wealthy clients gravitate to DBS for many reasons. Many are attracted to its stability, corporate banking franchise, research and multi-market presence. The young-and-wealthy in markets such as Malaysia and Indonesia instinctively prefer it to local banks favoured by mum and dad. Newcomers to the Lion City are drawn to the granite foundations of the bank and its largest shareholder, Singapore sovereign wealth fund Temasek.
Underlying all of this is a longstanding investment in technology that has seen DBS named the world’s best digital bank several times by Euromoney. “Our long-term investment in data allows our RMs to be attuned to what our wealth clients need or want,” says Poon. “We know where clients are at along their financial lifecycle: how and when they accumulated wealth, when they started investing their wealth, or when they start their journey on making retirement and legacy plans.
“This allows us to anticipate their needs and provide them with personalised forward-looking insights or actionable ‘nudges’ that cut through the clutter, which they truly appreciate.”