SINGAPORE, June 9 (Reuters): Singapore's DBS Group Holdings DBSM.SI
is aiming for a 40 percent jump in its private banking assets to $100
billion in less than three years
, fueled by the growth of millionaires
in the Greater China region and
in its home market.
DBS's group
head of wealth management, Tan Su Shan, said
Singapore's biggest lender
is generating strong asset growth in its home market, where there are
more than 100,000 millionaires, and in China, where sectors such as
technology and real estate are adding to the millionaire population.
"For
both onshore and offshore in China, we're seeing very good,
double-digit growth," Tan told the Reuters Wealth Management Summit on
Tuesday.
"China now wants to do wealth management in a big way.
The speed of change, the recognition that the RMB (renminbi) is an
international currency, the wide use of the RMB, the opening up of the
capital account, the flow of North-South-South North, to me it's all
very exciting and it represents what is the single biggest trend for us
in Asia," she said.
DBS bought Societe Generale's SOGN.PA Asian
private bank last year, helping boost the ranking of the Singapore
lender to Asia's seventh biggest private bank. DBS manages S$96 billion
($71 billion) at its private bank.
DBS and the private banking arm
of rival Oversea-Chinese Banking Corp OCBC.SI are jostling for market
share in a highly competitive wealth management market in Asia, led by
global players such as UBS
UBSG.VX and Citigroup
C.N.
In
China, Tan said DBS is looking at alliances and partnerships with
companies in the technology space, travel companies, luxury retailers -
tie-ups which will help DBS get a better foothold in the market.
"In
the wealth management space onshore, an ideal partner would be someone
who is already looking after the targeted clients, who may want to then
have a good bank that's able to do part of the infrastructure for them,"
she said.
DBS is gaining market share in Singapore, Tan said,
without giving details. To win market share in places such as China and
Indonesia, data mining is key to get a better insight about what
customers want, she said.
"The old style of wealth management and
sales - create the product, get the relationship manager to sell, sell
sell - doesn't work anymore," said Tan, who has previously worked for
Morgan Stanley MS.N and Citigroup.
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