Asia's private bankers are sometimes seen as glorified dog walkers or errand runners for wealthy families, but Citi Private Bank hopes to change that perspective as it woos more family offices as clients in Singapore.
The number of family offices in Singapore has quadrupled between 2016 and 2018, according to the latest figures from the Monetary Authority, and private banks such as Citi are keen to capture opportunities in this fast-growing segment. In Asia, where many are looking to set up family offices for the first time, access to content and information is key.
To capture this demand, Citi runs a number of exclusive events for family offices that are private and confidential where they get to meet and learn from fellow practitioners. Its exclusive «club» status is also one of its advantages, as the bank provides opportunities for these ultra-high net worth individuals to rub shoulders and strike deals.
Providing What Banks Do Best
«We are not here to walk the dog. We are not here to provide the fuel for your jet. There are very good people out there who do that, but we are here to provide a set of services that fits what the bank does,» said Peter Charrington, global head of Citi Private Bank, who was quoted in the «Business Times» (behind paywall).
To win these sophisticated clients, customization is key. «I think there's nothing worse – you meet the bank and the first thing they say is: here's all the things I can sell you. If I were a family office, I would say goodbye,» added Charrington.
Family Offices Growing in Asia
Family offices are private wealth management advisory firms set up by ultra-high net worth investors to manage the wealth of the family, providing exclusive services in areas such as trust and wealth planning, real estate, investments and even institutional access to markets.
Compared to the more mature markets of the United States and Europe, this trend is quite new in Asia. Some became millionaires in the region as entrepreneurs made their fortunes here, while others are inheriting wealth. Also, there are wealthy families outside of Asia who want to set up family offices here to diversify their wealth beyond domestic markets in the West.
Institutional in Nature
Similar to other private banks which work closely with their investment banking arms, Citi's private banking unit sits under Citi's institutional banking business. Hence, family offices that work with Citi can get direct access to the markets desks for their trading activities.
They can also tap on complex portfolio analytics offered by Citi to calibrate the wealth concentration in the industry from which a family business generates its business income. «Clients have needs that are quite institutional in nature,» noted Charrington.
