UOB sees wealth management as path to diversity

Singapore's United Overseas Bank (UOB) is seeking to diversify its Hong Kong retail business by expanding into wealth management services, according to senior bank officials.

UOB will initially cross-sell wealth management products to its existing credit-card base of 50,000, according to Francis Hsu, senior vice-president and head of credit card services. Recently, it began offering a currency-linked deposit product to some of its credit-card holders.

The bank is hoping to eventually tap into a population of 500,000 wealthier individuals with more than $500,000 in liquid assets. Products offered are likely to be fee-based, such as unit trusts.

'We are now setting up the infrastructure, advertising and branding to capture this niche market,' Mr Hsu said.

Competition among Hong Kong's banks has forced many to shift their retail focus towards wealth management sales.

While UOB has maintained its corporate banking operations in Hong Kong since 1965, its first retail lending foray did not materialise until August 2001, when it founded its credit-card centre.

'Why we decided to go for credit cards even though it's so costly to start is because we already have a strong card business in Singapore,' said Lawrence Tsong, head of UOB's credit card centre in Hong Kong.