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Competitive Dynamics in Singaporean Wealth Management
Datamonitor, November 2012
The crowded private wealth management market in Singapore is one of the more difficult Asian economies in which to compete but arguably has one of the most compelling growth stories. Competitors in the market have sought to build up their operations through investment in personnel, as well as greater client segmentation and more refined wealth management service propositions.
- Understand the market through analysis of different business models and how they derive income.
- Analyse the current recruitment situation for private bankers and average salaries.
- Interpret competitive trends in the market through a breakdown of M&A, organic growth and partnerships developments.
- Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies.
- International private banks manage the most assets under management (AUM) in Singapore when the entire Asia Pacific book is taken into account, although local integrated banks are gaining market share and assets as they increasingly invest in building up this part of their operations.
- The Singaporean private banks manage books of business considerably smaller than those of the international firms, with Datamonitor estimating their combined AUM at less than the Asia Pacific AUM of the market leader.
Reasons to Purchase
- What business models are most prominent in Singapore’s wealth management industry?
- How easy is it to recruit relationship managers and what are they paid?
- What are foreign and domestic players doing to access the Singaporean affluent population?
- What strategies are the competition employing to win and keep affluent clients?
- How big are key competitors in the market in terms of their private bank AUM?
- The Singapore private wealth market is split between a wide variety of players - The dynamics of the Singapore market are highly competitive, reflecting a crowded scene
- Onshore HNW clients are amply serviced by advisors from banks and IFAs
- The huge offshore market means wealth managers have outsized operations in Singapore, but makes the higher end of the market more competitive
- Key factors shaping the competitive scene in Singapore - The regulatory framework in Singapore favors no specific class of competitors
- The Financial Industry Competency Standards certification for Wealth Management is becoming more standard in the market
- Private banks in Singapore mostly operate on a percentage fee basis, but some still charge commissions
- High personnel costs are a huge competitive headache for Singapore-based wealth managers
- New entrants to the Singaporean wealth management market are rare due to its established nature - Few of the top international private banks lack a presence in the Singapore market
- Banks with only a modest presence in the Singapore market have recently sold out
- International private banks have been busy setting up trust companies in Singapore
- Wealth managers in the country continue to invest in more branches, larger offices, and new personnel - The rush into Singapore has largely already occurred, meaning competitors have focused on building up operations
- Major international wealth managers have been basing more personnel in Singapore
- New product launches and service offerings have mainly been from the locally based banks - New products for the private bank market in Singapore are the result of high competitive pressures
- New products of note are technology-focused and aimed at affluent investors
- New investment products have been less prominent, barring new yuan renminbi products
- New service offerings in Singapore have been extremely varied, ranging from classic wealth-focused segmentation to those catering to the needs of Islamic investors
- Competitor rankings - Asian wealth managers and the Asian units of international banks account for a greater share of the global industry
- Onshore wealth management operations are increasingly important in the Asian market
- Key competitors from the Singapore market in depth - DBS
- Strategic evaluation: a strong local presence and unified back office allow DBS to leverage its scale and deliver at lower costs
- Products and services: open architecture is combined with advisory and discretionary asset management
- Standard Chartered
- Strategic evaluation: developing a private wealth management brand and proposition
- Definitions - Accredited investor
- High net worth (HNW)
- Liquid assets
- Mass affluent
- Measures of growth
- Further reading
- Ask the analyst
- Table: Market participants profiled in this report
- Table: Competitors by category in Singapore's wealth management market, 2006–12
- Table: Wealth management programs from selected large universal locally incorporated banking groups ($m), 2012
- Table: New trust company formations in Singapore, 2011
- Table: Selected organic growth developments in Singapore's wealth management market, 2010–12
- Table: Selected staffing announcements for leading wealth managers in Singapore, 2010–12
- Table: Selected Singaporean renminbi developments
- Table: Mass affluent plus programs released for the Singapore market, 2010–11
- Table: Profiled competitors and their banking and wealth management programs
- Table: DBS wealth management key figures ($m), 2010–11
- Table: OCBC wealth management figures ($m), 2010–11
- Table: Standard Chartered wealth management figures ($m), 2010–11
- Table: UOB wealth management figures ($m), 2010–11
- Figure: The Singapore onshore private wealth management market structure
- Figure: There is a sizable deposit base that private banks can leverage when competing in the offshore market
- Figure: Competitors pay for experience and established relationship managers in Singapore
- Figure: DBS's market leading m-banking app received new functionality bringing it into the wealth space
- Figure: Seeing is Believing is a collaboration between Standard Chartered Bank and the International Agency for the Prevention of Blindness
- Figure: Selected Asia Pacific AUM of leading private banking groups, 2011
- Figure: DBS's private wealth operation is part of the Consumer/Private Banking division
- Figure: DBS's wealth programs cover individuals from the mass affluent to the ultra-high net worth
- Figure: DBS has launched an advertising campaign to highlight its new service offering for HNW individuals
- Figure: One of the many privileges offered by DBS Treasures is the events it hosts for clients
- Figure: The wealth management arms of OCBC are part of the Global Consumer/Private Banking division, separate from fund management in the Insurance division
- Figure: OCBC's wealth management brands have fewer tiers
- Figure: Bank of Singapore is one of the major sponsors of the prestigious Encounter exhibition in Asia
- Figure: Standard Chartered has a number of brands in the wealth space spanning the retail and affluent markets
- Figure: The Standard Chartered wealth tiers capture the emerging affluent up to the HNW in its private bank
- Figure: The High Value Client grouping combines tiered segmentation with more sophisticated targeting
- Figure: UOB's wealth operations are confined to the Group Retail operating segment
- Figure: UOB has the most granularity in its wealth management tiers
- Figure: UOB Wealth Insights being shown to clients at the UOB Katong branch in Singapore
- Amer Sports Corporation
- Bank of America Merrill Lynch
- Bank of Montreal
- Canadian Imperial Bank of Commerce
- Citigroup Inc.
- DBS Group Holdings Limited
- Eastern Bank Corporation
- General Mills
- Hutchison 3G UK Limited
- ING GROEP N.V.
- Macquarie Group Limited
- Monetary Authority of Singapore
- Nestlé SA
- Parcelforce Worldwide
- Pictet & Cie
- Raymond James Financial
- Schindler Holding Ltd.