The current banking crisis and continued asset inflows to Singapore and Hong Kong will potentially remodel the regional wealth management market.
Standard Chartered (Stanchart) Bank is getting a share of assets as a result of recent shifts seen in the private banking marke and amid continued inflows of assets moving into Hong Kong and Singapore.
Potential ultra-high net worth clients around the world, including in China, currently see Singapore as a target, even a magnet. «And we’re in banking, so we’re getting our share of that,» said CEO Bill Winters in The Business Times, a leading financial newspaper in the city-state.
UBS's forced takeover of Credit Suisse announced a little over two weeks ago, is also likely to have an impact notwithstanding Standard Chartered's current strong sweet spot in the mass affluent market.
«We had seen continued momentum in the early part of 2023, which was consistent with a very strong finish to 2022,» Winters said.
Opportunities in Asia
China’s reopening following the pandemic is expected to contribute a meaningful portion to Stanchart’s growth this year, with regional economic activity remaining robust despite the recent banking crisis that first emanated with the collapse of Silicon Valley Bank in the US before it severely impacted Credit Suisse.
In Asia, one of Standard Chartered's objectives is to increase penetration of the financial institutions segment although it also wants to grab more market share by acquiring individual clients in Southeast Asia and Greater China, where saving rates tend to be higher while investment consumption remains relatively low.
The bank is also noticing a pickup in trade throughout Asia as manufacturers diversify into Vietnam, Indonesia, Malaysia – and even India. With a strong commercial banking franchise, Standard Chartered has a significant market share with corporates that have activities in those countries. «So, it’s a big boost for us,» Winters added.
Return to Asia
With the economic slowdown in the US and European markets, the Standard Chartered CEO sees investments returning to Asia.
Marginal investments are being made in fast-growth markets, and Southeast Asia as a bloc is contributing as much to global growth as either India or China, Winters said.
«We don’t wish for a recession in the US or Europe…but on the margin, we’ll probably relatively benefit from that,» he added.
However, if corporate clients and financial institutions have a less robust operating environment in their home markets, that could suppress overall investment activity. Currently, a third of Standard Chartered’s corporate business comes from the US and European clients.
