Press Release 2012
UOB Malaysia's enhanced Privilege Banking to drive 40 percent growth in investible assets
Dedicated specialist wealth advisory service set up for affluent individuals
Kuala Lumpur, 20 March 2012 - United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has, as of today, enhanced its Privilege Banking offering by providing specialist wealth advisory services for affluent individuals with investable assets of at least RM500,000. The Bank expects to drive a 40 per cent increase in Assets Under Management (AUM) and grow the UOB Privilege Banking client base by 5,000 clients within a year through a new dedicated specialist advisory service.
According to industry reports, the level of affluence in Malaysia is rapidly increasing. The number of Malaysia's High Net Worth Individuals (HNWI)1 for instance, is expected to increase from the current 32,000 to 68,000 by 20152. Their net worth is expected to rise from RM430 billion (USD143 billion) to RM997 billion by 20152.
Given the increasingly affluent customer base in Malaysia, Chan Kok Seong, Chief Executive Officer of UOB Malaysia, said it was timely to address the needs of this group of clients who place higher emphasis on advisory in addition to portfolio management.
Through our new specialist wealth advisory services, we will help our clients have a deeper understanding of how to manage their wealth, especially in the areas of treasury, investment, insurance and property. Our Privilege Banking clients can only make informed decisions if they have a better grasp of their portfolio and the range of short and long-term investment options and opportunities that are best suited to their needs.
"Our clients tell us that they want sound advice to help them better manage their portfolios. This demand for specialist advisory services became more apparent after the global financial crisis as clients emerged with a deeper understanding of their own risk appetites and an appreciation for asset diversification. UOB Malaysia has that knowledge and experience to offer advice based on the client's risk appetite and financial objectives," said Chan.
Research shows that of HNWIs in Asia Pacific countries, Malaysians were the least diversified in their investment holdings, with 86 per cent of assets invested domestically in Malaysia3. HNWIs are also gradually broadening their portfolios to include assets which require professional support and advice. In 2010, 69 per cent of HNWI assets in Asia Pacific excluding Japan were in assets for which professional support and advice were required, up from 58 per cent in 20083.
"Industry trends indicate that the affluent customer segment is increasingly seeing advisory services as essential for the management of their wealth. With our specialist advisory service, we can evaluate our clients' financial goals, assess their risk profiles and help them diversify their assets accordingly for greater stability and yield. There are growth opportunities in the region beyond our shores, but our clients first need to know just what these opportunities are and what might best suit them," said Chan.
In addition to the advisory service, UOB Privilege Banking clients will have two more sources of expert information to tap - UOB Privilege Insights, financial and investment reports on local and global markets; and UOB Privilege Conversations, a series of exclusive dialogues, events and seminars organised specially for these clients. The Bank has also introduced UOB Privilege Concierge, a personal assistance service that caters to clients' lifestyle needs such as the sourcing of tickets to special events; as well as banking needs such as account management via the phone.
UOB Privilege Banking will service the wealth management needs of affluent individuals with more than RM500,000 in AUM, an increase from the previous RM300,000 threshold. The revised qualifying threshold will only apply to new UOB Privilege Banking clients who open accounts from 20 March 2012. Existing clients will continue to enjoy all the benefits of UOB Privilege Banking.
1 HNWI defined as those with investable assets of more than US$1 million, Julius Baer Wealth Report: Asia-2011
2 Julius Baer Wealth Report: Asia-2011
3 2011 Capgemini and Merrill Lynch Global Wealth Management - Asia-Pacific Wealth Report