Credit Suisse detailed its wealth management strategy for Asia with not only a continued focus on the ultra-wealthy but also extending coverage of the broader high net worth segment in the region.
As part of its growth strategy for wealth management, Credit Suisse will focus on extending its high net worth (HNW) coverage model to Hong Kong and Singapore moving forward, according to the bank's 2022 Investor Deep Dive hosted on Tuesday.
In addition to a larger client base and, effectively, revenue pool compared to the ultra-high net worth (UHNW) segment, the bank is also aiming to boost recurring revenue from the mass millionaire market. It has a track record in covering the segment under its private banking international (PBI) unit, launched in 2016, which has achieved 60 percent penetration in discretionary mandates.
Digital Focus
Another means of scaling growth at Credit Suisse is its focus on digitalization across the wealth management business, particularly in Asia.
The bank highlighted growth drivers and enablers such as its APAC product and content platform, which allows effective product management and dissemination of relevant content, as well as the digital private bank in the region, which boasts 64 percent of direct execution from eligible client orders in the first quarter of 2022.
UHNW: More of the Same
Despite an increased focus on the HNW segment, Credit Suisse also intends to maintain its positioning for UHNW clients as the «bank for entrepreneurs», with cross-divisional capabilities intact such as collaboration with the investment banking and asset management units.
On top of maintaining the coverage model, growth opportunities include a greater focus on private markets, lending, sustainability and next generation programs.
Growth Targets
Credit Suisse reviewed its goals for the wealth management business globally and listed a handful of targets it aims to achieve by 2024.
On investments, it hopes to increase mandate penetration to 35 percent, double assets under management in private markets and fully embed sustainability in the advisory process. And on the lending side, the Swiss private bank aims to grow credit volume by a mid to high-single digit rate and boost sustainable financing.
According to Credit Suisse, its private banking arm in Asia currently houses over 700 relationship managers and around 300 billion Swiss francs ($314 billion) in client business volume – a measure that includes assets under management, custody assets and net loans. It forecasts approximately 10 percent of market growth annually from wealth management in the region.
