Introduction

In a bold move to expand its wealth management division, Standard Chartered Bank has announced plans to establish a new wealth management center in Hong Kong every year for the next five years. This strategy aims to cater to the city's affluent population and engage small and medium-sized enterprises (SMEs) in the Greater Bay Area, as highlighted by Stephen Man Wai-shing, the head of wealth and retail banking at Standard Chartered Hong Kong.

Expansion Plans

The bank is set to open its next center in the heart of Central, with a soft launch anticipated towards the end of this year, complementing its existing outlet at Exchange Square. Future locations, including Causeway Bay, are also under consideration as part of the bank's effort to enhance service quality for its well-off clientele and sustain robust business performance.

Profit Growth and Ambitious Targets

Leveraging its growing wealth management services, Standard Chartered reported a significant 21% profit increase in 2024, propelling group CEO Bill Winters to set an ambitious target of attracting US$200 billion in wealth management business globally from newly affluent individuals within the next five years.

Focus on SMEs

In addition to serving individual clients, Standard Chartered is focusing on the growing segment of mainland SMEs, especially those involved in imports. The bank recently partnered with Cainiao, Alibaba's logistics arm, to simplify lending processes for SMEs using transaction data. This collaboration aims to expedite and enhance credit approvals, directly supporting SME development and transformation. Just a week after the partnership's launch, two loan facilities were successfully approved, demonstrating the effectiveness of this approach.

Collaboration with Fintech

Additionally, Standard Chartered is building on previous partnerships, including one with Linklogis, a Hong Kong-listed fintech company, to leverage Amazon's real-time data, granting eligible SMEs access to overdraft facilities of up to US$1 million.

Targeting SME Owners

As part of its strategic initiatives, the bank is also targeting SME owners to promote wealth management services, underlining a commitment to serving the Greater Bay Area's burgeoning entrepreneur landscape. This year, Standard Chartered plans to bolster its team by hiring over 100 wealth managers in Hong Kong. This recruitment drive is part of a larger US$1.5 billion investment aimed at enhancing the bank's wealth management capabilities over the next five years, focusing primarily on Hong Kong, its largest profit hub.

Retail Banking Performance

The retail banking division of Standard Chartered Hong Kong has shown remarkable performance as well, with a double-digit growth in assets under management from affluent clients last year. Revenue from funds and insurance products surged by an impressive 40% during the same period, highlighting the bank's successful strategy in tapping into the region's wealth.

Conclusion

As Standard Chartered continues to innovate in its service offerings and expand its market presence, it positions itself as a key player in Hong Kong's wealth management landscape—a sector poised for substantial growth in the coming years.