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SCMP Reporter

Wealthy Asians have vastly different banking requirements compared with their high net worth counterparts in the United States and Europe.

So much so, that Singapore-based DBS bank has set itself apart from its rivals to focus on this unique - and fast expanding - niche.

Recently named in the top 10 of Euromoney magazine's best private banks in Hong Kong, DBS said to be successful in Asia, it had to be in tune with the Asian mindset and have good guanxi - or relationship - with its clients.

To this end, DBS Private Banking managing director K.C. Tew said the bank's advantage over its rivals lay in the fact that it was an Asian bank working in an Asian market.

'For a private bank to be successful [in Asia], it has to be Asian. We cannot be like American banks or Swiss banks. The rich people are very proud of themselves and we should give them due credit because they are successful,' Mr Tew said.

'Hong Kong people are different and have unique characteristics. In Singapore they are different ... [and] in the Philippines and Malaysia. I don't want to be like Citibank or Chase or a Swiss bank ... I want to be Asian.'

DBS is the largest bank in Singapore and the fourth-biggest banking group in Hong Kong by assets, while its credit ratings are among the highest in the region.

It is also one of the largest banking groups in Asia in terms of shareholder funds and total assets - S$14.9 billion (HK$69.71 billion) and $159.6 billion respectively, as of  December 31.

In 1999, DBS acquired Kwong On Bank in Hong Kong, and followed this up by purchasing a major stake in Dao Heng Bank, also in Hong Kong, in 2001.

The acquisitions led to the merger last year of Dao Heng, DBS Kwong On and Overseas Trust Bank to form DBS Bank (Hong Kong). The merger served to strengthen the bank's bridge between Singapore and Hong Kong, but Mr Tew said the competition in Asia for private banking was extremely keen.

'As I say many times, we cannot compete with [the likes of] UBS or JP Morgan,' he said.

'But we can beat them on some levels - we are a local bank [and] we offer service quality with relationship managers.

'We are also more flexible because we are smaller. We can respond faster, which is important.'

DBS Private Bank offers a full range of trust services to high net worth clients, who need a minimum of US$1 million to open an account. These include the establishment of family trusts, private investment companies and property owning companies.

While  the bank's focus on client relationships was important, Mr Tew said the bank's niche was in its local protection services, 'which other banks don't do'.

'We do very well in the Hong Kong and Singapore stock markets,' he said.

'We also go for red chip shares such as China Mobile or Legend ... the major international banks are not interested [in red chips].

'We are very strong with the regional connection.'

Asia - in particular, China and India - is one the fastest growing markets in the world and private banks from around the world are clamouring for a slice of the pie.

Hong Kong also continued to grow, especially now with the economic pickup, Mr Tew said, adding that China, Hong Kong and Singapore were the bank's focus.

'Wealth in Asia has been growing extremely fast,' he said.

'The market is there but you have to be there to capture it. China and India are the future. Hong Kong growth is good ... it is an international city with good law and order. [But] you have to use the culture and the mindset, or the tradition of the bank, to enhance your business.'



DBS focuses on right mindset for the region