DBS Group Holdings Ltd plans to double its wealth management fees by 2027 as wealthy investors increasingly move their assets to Asia. The bank’s income from servicing high-net-worth clients surpassed S$2 billion last year, and it expects to achieve the same growth in just half the time, according to Shee Tse Koon, head of consumer and wealth banking at DBS.
The shift of global wealth to Asia has significantly boosted DBS’s fortunes. The bank, now the third-largest private bank in Asia (excluding China), is positioned alongside UBS Group AG and HSBC Holdings plc. Wealthy clients at DBS typically invest to enhance returns and seek assistance with trust and legacy planning.
With total client assets reaching S$396 billion by June, DBS anticipates that figure will exceed S$500 billion by 2027. The bank expects a fourfold increase in clients investing and purchasing insurance products. DBS also manages about a third of Singapore's 1,650 single family offices, which have been instrumental in driving its wealth management business.
Last year, Singapore saw a surge of US$120 billion in financial assets from overseas, with China being a key source of new wealth. DBS continues to see inflows from a broad mix of regions, including North and South Asia, the Middle East, and Europe.
In response to rising demand, DBS has expanded its relationship manager headcount by around 20% since mid-2023, with 730 relationship managers as of 2023, making it the second highest in Asia outside of China. Despite seeing growing interest from clients in Dubai, India, and London, DBS currently has no plans to establish a third booking hub in Dubai, maintaining its primary centers in Singapore and Hong Kong.
However, DBS has faced regulatory challenges, including a HK$10 million fine by the Hong Kong Monetary Authority for lapses in monitoring high-risk clients between 2012 and 2019. The bank has also been linked to Singapore’s largest money-laundering case, with S$100 million exposed to convicted clients.
To address these issues, DBS is investing in technology and people to enhance its anti-money laundering capabilities and risk management, aiming to strike a balance between compliance and business efficiency.
Other key points from the interview:
- DBS is open to additional partnerships in India, where it operates over 500 branches.
- Following its acquisition of Citigroup's retail business in Taiwan, DBS has seen strong growth, especially in credit cards.
- More than half of DBS's relationship managers are utilizing generative AI in a pilot project to prepare for client investment discussions.
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