AFFLUENT SEGMENT FUELS STANDARD CHARTERED'S GROWTH

The Star

3 days ago

KUALA LUMPUR: In an era of shifting markets and rising complexity in wealth planning, Malaysia's affluent and emerging affluent are turning to partners with global insights and wealth expertise to future-proof their financial ambitions.
Standard Chartered is doubling down on its affluent business and is strengthening its wealth proposition to help clients grow and protect their wealth.
For the bank's Wealth and Retail Banking (WRB) business, the focus is on growing its three main segments – affluent, emerging affluent and small and medium enterprises (SME).
Doubling down on affluent
According to Harmander Mahal, Standard Chartered's head of WRB for Malaysia, the bank's business is fairly robust in all three segments.
'Within WRB Malaysia, our affluent business contributes the most, making up almost 45% of our total income. This is followed by the SME and emerging affluent segments.
'We aim to continue building on our strengths in affluent as we expect our overall WRB top line to nearly double in the next five to six years. We target to have almost 60% of that income come from affluent,' he told StarBiz recently.
In Malaysia, Standard Chartered categorises its affluent clients under Priority Banking. These are clients who have an Asset Under Management (AUM) of above RM350,000.
'For us, SMEs range from businesses with a turnover of a couple of million ringgit up to RM400 million, maybe even more, depending on their profile. Within this segment, we provide support with their potential growth overseas, working capital and other banking needs.'
Harmander: Malaysia continues to distinguish itself as a compelling destination for business and investment, underpinned by its stable fundamentals and conducive business environment.—GLENN GUAN/The Star
Within the mass retail space, the bank is focused on supporting its emerging affluent clients progress in their wealth journey, essentially forming a pipeline of future affluent clients. This client segment typically consist of young professionals.
'We offer products and solutions designed to cater to clients across segments along our client continuum, growing with clients as they grow their wealth through different life stages.
'How this could look like, is that the client could start banking with us as a young professional with a very modest income, but through our support, they are able to progress through each of their life stage, as they get married, buy a house and more,' he explained.
Positioned for greater growth
Having worked extensively in the bank's WRB business in all 11 Asean and South Asia (ASA) markets, Harmander believes Malaysia is well-positioned to capitalise on shifting global investment flows, supported by its robust infrastructure, strategic location, and pro-business policies that continue to attract sustained foreign direct investments.
'I think Malaysia is at a crucial point and it's going to do really well as it progresses. While short-term fluctuations are inevitable, the broader trajectory remains highly encouraging. Malaysia continues to distinguish itself as a compelling destination for business and investment, underpinned by its stable fundamentals and conducive business environment,' Harmander said.
He added the government has been very agile to capitalise on the opportunities arising from the global trade tensions and measures, such as the Johor Special Economic Zone, which is making good progress.
'All the policies and measures taken are going to present a plethora of opportunities for Malaysians and investors.'
According to a Knight Frank report in 2024, the population of ultra-high net worth clients in Malaysia is expected to grow by 30-35% in the next five to six years.
'As wealth creation accelerates, we believe that it needs to be well managed, and we are in a strong position to help with that.
'Our long-standing presence in Malaysia for 150 years is a testament to our enduring commitment, trusted relationships, and deep understanding of the local market,' said Harmander.
He said Malaysia is a key market for the bank, therefore the investment, in terms of products and platforms, has been quite significant.
'We run some of our best platforms in Malaysia,' Harmander told StarBiz.
A leading international wealth manager
Standard Chartered's advantage lies in both the trust that is built with clients across their wealth journey and its expertise in wealth solutions. This combination enables the bank to curate and offer innovative product propositions tailored to clients' unique needs.
'The advice provided by our advisory team has a high degree of governance and an international flavour to it.
'We don't take those things lightly. The other advantage we have, which is quite significant and unique vis-a-vis other banks, is that we have a distinctive international network. Our wealth operations and expertise extend across 25 markets with four wealth hubs in Singapore, Hong Kong, Dubai and Jersey.'
The four key wealth hubs are strategically located to capitalise on cross-border wealth flows and offer international wealth management solutions for affluent clients.
'This presence in the multiple markets gives us a great advantage as we see Malaysia becoming an attractive business and investment destination for expats,' said Harmander.
Against the backdrop of international diaspora, coupled with Malaysia's investment story and its Malaysia My Second Home programme, he noted that Standard Chartered remains attuned to the diverse needs of global entrepreneurs, professionals and their families as they expand into Malaysia.
'As these clients grow their wealth across borders, our affluent continuum and vast international network work in tandem to guide them in navigating the path forward in an ever-changing world,' he said.