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Asset Management / Wealth Management
DBS Private Bank flexes Asian heft in global push
Assets under management in wealth business set to exceed S$500 billion by 2027
Tom King 10 Oct 2024
Joseph Poon
Joseph Poon

DBS Private Bank has undergone remarkable changes over the past five years. The transformation has been built on the foundations laid by the bank’s incoming group chief executive Tan Su Shan, who instilled her substantial banking and international wealth management expertise into what was then an ambitious but predominantly provincial private wealth management business. 

Currently at the helm of this development is Joseph Poon, managing director and group head of DBS Private Bank and also head of DBS Treasures Private Client in Singapore and Hong Kong. Poon’s predecessor Lawrence Lua also played his part in moving the needle on the bank’s cutting-edge wealth management offering.

During a recent conversation with The Asset, Poon shared details about the bank’s expansion, its strategic growth in Asia, and its plans to capture assets across the shifting landscape of private wealth.

DBS client assets across the entire wealth continuum reached S$396 billion (US$303 billion) as of June 2024. That is set to exceed S$500 billion by 2027, with the number of clients investing in and buying insurance products expected to quadruple.

The bank’s income from servicing affluent, high-net-worth and ultra-high-net-worth clients also rose to more than S$2 billion last year, doubling from 2015.

One-bank model

One of the most distinctive features of DBS’s approach is its "one bank" model, which brings together private wealth, corporate banking and investment banking under a single structure. This integrated approach has allowed the bank to offer a comprehensive suite of services that meet the evolving needs of its clients.

According to Poon, the ability to connect clients across different banking segments has proven invaluable. "We often manage clients who are business owners. For instance, we recently connected a North Asian-based founder in the chemical business with an Indian client on a potential business collaboration. Traditionally, these clients wouldn't necessarily seek each other out, but we made it happen because we have a trusted relationship with both," he says.

This ability to facilitate cross-border, cross-industry partnerships gives DBS an edge in the market, Poon believes. “We have the right organizational structure size where our corporate and investment banking teams can effectively collaborate with private banking. Not all clients are looking at multibillion-dollar transactions, but they do frequently look at US$500 million to US$1 billion deals, and that’s where we come in.”

Focused on Asia

The bank’s expansion strategy is heavily focused on Asia, a region where private wealth is growing at an unprecedented rate. North Asia, in particular, is a key growth area. "We acquired Citibank’s business in Taiwan two years ago, and now we’re the largest foreign bank there. Taiwan is a rich corridor, and we're seeing clients diversifying some assets from Hong Kong and China into Singapore," Poon relates.

India has also become an important market for DBS, with many firms cashing out of successful ventures and reinvesting offshore. "India seems to be the flavour of the year,” he says. “Many private equity funds are writing cheques to buy into India, and we manage these clients’ offshore funds. There’s good synergy between our Singapore and India offices, which helps clients to be covered onshore and offshore."

In addition to these markets, DBS is seeing increasing interest from the Middle East, Western Europe, and even family offices from Africa. "We’re global, and clients come to us because of our reputation, global platform and deep capabilities in Asia."

A key element of the bank’s strategy is to go beyond its home market of Singapore. "The last five years have been a transformation for our business. We've made strong progress in the breadth of our platform, capabilities, and growth of our UHNW client segment. Year after year, our net new money has grown significantly, and much of this comes from outside Singapore. In fact, 75% of net new money now originates from outside of Singapore," Poon discloses.

North Asia, Indonesia, India, and Thailand are key drivers of growth. "Our presence in Thailand is unique. We offer both onshore and offshore services to clients using the same relationship managers. That’s something other banks can’t do," he explains.

Moreover, family offices in Europe are increasingly looking to DBS for access to Asia’s growing markets. "We've been discovered by family offices in Western Europe who want a second home in Singapore with DBS. They are interested in accessing Asian markets and exploring co-investments in areas like renewable energy, data centres, and private markets," Poon notes.

Family office structure

Singapore’s rise as a hub for family offices has further contributed to the bank’s growth. Currently, DBS is working with about a third of the family offices in Singapore. "Families are increasingly sophisticated. They have access to deal flow and want bespoke solutions. We’ve invested in building deep competencies that support their needs, from complex trust structures to strategic advisory services," he says.

The bank has pioneered new products around the Variable Capital Company (VCC) structure, which can be a viable alternative to setting up a family office in Singapore. Last June the bank launched the world’s first bank-backed multi-family office VCC for wealthy families.

"We’re the first bank in the world to offer this. It’s a unique solution for clients who want similar benefits as offered by Singapore’s family office regime but without having to physically set up a family office here. It provides integrated trading, custody, and investment management, all under DBS," Poon explains.

Face-to-face interaction

Technology has been a key enabler. In 2014 DBS hired Neal Cross as managing director and chief innovation officer. Formerly with MasterCard Labs, Cross has over 20 years of experience in technology-led innovation across key markets, including digital customer engagement.

Cross encouraged DBS to be an early adopter of artificial intelligence (AI) and digital banking solutions to enhance client relationships. "We have around 16,000 data points on each client, from what they trade to what they read. This helps us deliver personalized advice, but the last mile is always the face-to-face interaction," Poon says.

The bank’s proprietary technology platforms also extend to newer asset classes like cryptocurrencies. DBS launched its cryptocurrency exchange in 2020 and now offers custody solutions for digital assets.

"Clients are asking about cryptocurrencies, and we’ve made it possible for them to hold these assets in a trust with DBS. No other bank is doing this."

Making an impact

The bank has seen significant growth in private markets, particularly in private equity, hedge funds, and direct co-investments. "Many private clients are underexposed to private markets, and we’ve built a platform that allows them to invest in long-term opportunities. We’ve seen particular interest to invest in Japan, where real estate and infrastructure projects have delivered strong returns," Poon points out.

Environmental, social and governance (ESG) considerations are also becoming increasingly important to clients, especially the next generation. "Clients want to invest in areas that make a difference, whether it’s renewable energy or social enterprises," he says.

He believes the bank’s future lies in deepening relationships with clients and continuing to innovate. "We have a lot of upside in our key markets so we will continue to invest through the cycle. We are very comfortable focusing on Asia, particularly in markets like India, Indonesia, China, Singapore, Hong Kong, and Taiwan. We’ll continue to build and grow our coverage in these geographies," Poon stresses.