HSBC is capitalizing on growing Middle East demand for global private banking services via Singapore, having set up a new coverage team in 2022.

For the first time ever, HSBC Global Private Banking saw «several hundreds of millions» of dollars of net new money in investment flows enter the Singapore unit from the Middle East and North Africa (MENA), according to APAC regional head Siew Meng Tan. 

«We are hearing flows […] outside the region coming to Asia. One of the key corridors is the MENA-Singapore corridor,» Tan said during a media luncheon attended by finews.asia.

New Team

According to Tan, a rapidly increasing number of Middle Eastern clients are «very, very interested» in gaining exposure to Asia with interest in establishing offshore wealth in the region and setting up family offices.

To cater to this demand, HSBC Global Private Banking formed a coverage team in the city-state in 2022 to work with existing colleagues in the Middle East where it has a significant existing presence.

Onshore Strategy

The British private bank’s focus on taking advantage of its onshore footprint is a key growth driver for its broader strategy in APAC and it extends beyond the MENA market.

In Taiwan, HSBC has expanded its onshore coverage team and enhanced its credit offering, particularly in credit investment and insurance solutions. A revamped onshore offering was launched in mainland China with 100 new hires and the aim of further tripling headcount in the next five years. 

And there are more plans to expand onshore coverage. In Australia, HSBC is working on adding a team of coverage bankers to leverage its existing onshore unit and tap growing demand to set up family offices in Singapore. HSBC is also on track to relaunch onshore private banking services in India this year after exiting in 2015.

Covid Lessons

In addition to capturing a greater share of wallet – up to 75 percent of wealth from markets like mainland China or Taiwan is based at home – HSBC’s growing onshore focus is also born out of lessons learned from the pandemic. 

«This flying in, flying out – if we can minimize this, that would be the best. This is something we learned from Covid. When everything shuts down, how are you going to meet your clients?» Tan said.  «Wherever the regulations allow, we will put coverage bankers on the ground.» 

Global Coverage

Beyond, the regional wealth centers of Hong Kong and Singapore as well as onshore markets, HSBC is also further leveraging its global footprint with a dedicated team covering its Asia clients out of other global hubs, including London, Switzerland and the US. 

«For HSBC, we have been in Asia for 158 years and we are sitting on a gold mine of clients [with] relationships we have built up over decades,» Tan added. In 2022, HSBC Global Private Banking reported a 2 percent decrease in Asia client assets to $174 billion, though the bank does not break down contributions from market performance, new money or other factors.