HSBC to hire 5,000 wealth planners as it increases investment, emphasis on Asia’s rich
- HSBC will invest US$3.5 billion in its wealth management operations as part of latest pivot to Asia
- Bank targeting additional 600 wealth planners in mainland China this year
That will include a significant investment in its wealth management business as it targets wealthy clients in mainland China, Hong Kong and Singapore, as well as other parts of the region, senior executives said.
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“In the next five years, we plan to extend private banking in mainland China to 10 cities and more than double our Jade client base in mainland China and Singapore, where we will bolster our international wealth credentials,” said Greg Hingston, regional head of HSBC’s wealth and personal banking business.
HSBC currently has a private banking presence in Beijing, Shanghai and Guangzhou, and also serves Chinese clients in its global wealth hubs outside mainland China, Hingston said.
The bank’s Premier and Jade products alone had a combined US$780 billion globally in deposits and assets under management in 2020. Jade accounts, for example, require a minimum relationship balance of HK$7.8 million (US$1 million) to qualify.
“We believe Jade is the new sweet spot of wealth,” Hingston said, with Asia representing more than half of its Jade clients globally.
In total, Asia accounted for nearly half of HSBC’s US$1.6 trillion in balances in its wealth business and 65 per cent of the group’s wealth revenue, the bank said.
Fitch Ratings said the increased investment and emphasis on Asia should mitigate some of the effects of historically low interest rates on revenue and plays into the bank’s “franchise strengths”.
“We believe that the group’s strong footprint in the region is a firm starting point for further expansion,” Fitch analysts Ioana Sima and Marc Ellsmore said in a research report on Wednesday. “Nevertheless, we expect competition for capital-light, fee-generating and sustainability focused business in Asia to increase over the medium term, as the bank’s global and local peers tackle the same operating environment challenges.”
About two-thirds of the US$3.5 billion investment will be used to expand the bank’s distribution capabilities, via new hires and technology improvements, Hingston said.
Last year, the bank introduced a digital-first, hybrid financial planning wealth platform known as HSBC Pinnacle in mainland China to capture growing wealth there.
It hired 200 wealth planners in Shanghai, Hangzhou, Guangzhou and Shenzhen last year and plans to add another 600 this year, according to Nuno Matos, the CEO for wealth and private banking.
“Our wealth advancement is well under way,” Matos said on an analyst call on Tuesday. “We’ve made the necessary structural changes. The plans are well defined. We have bold, but achievable ambitions. We are in full execution mode, particularly in Asia, but also in our global wealth hubs.”
Quinn did not confirm the moves on Tuesday, but said the bank was considering locating some business heads in Hong Kong because it would be “good to have them closer to where the opportunity for growth is and to serve our clients in Asia directly.”
The bank recently hired Aaron Kwok Fu-shing, one of Canto-pop’s “Four Heavenly Kings”, as an ambassador to promote Jade investment schemes targeted at the GBA and appointed Daniel Chan Hing-yiu to head its new GBA office.
“Asian wealth onshore and overseas, offers one of the most compelling growth opportunities today,” Hingston said. “We are connecting Asian clients to the world and the world to Asian expertise as we see greater client demand to diversify into wealth.”
