Private bankers will need to be nimble amid seismic changes

Industry veteran notes evolving clientele, increasingly sophisticated wealth products

- Ven Sreenivasan

Singapore is a leading Asian financial centre with assets under management (AUM) standing at over $5.5 trillion. Within this, wealth management has seen huge growth, especially over the last four years, with AUM projected to reach $265 billion in 2024.

But the industry is facing seismic changes which will require private bankers to raise their game considerably.

They will have to be better trained, more knowledgeable and nimble to navigate the challenges, according to Mr Tee Fong Seng, veteran banker and former chief executive for Asia at Swiss private banking group Pictet Wealth Management.

Mr Tee, 70, told The Straits Times that the changing profile of clientele, increasingly sophisticated wealth products, the challenging on-boarding process and the emergence of new technology are among key challenges private bankers will face in the future.

"The reality is the speed at which wealth management is evolving is accelerating," he said. "Banks will require the right talent in order to execute their strategy direction, and so the foundational knowledge has to be at a different level. As a banker today, you cannot just be a client concierge."

The client profile is rapidly evolving as wealth is being passed to a younger generation, many of whom have gained experience and knowledge at top-tier academic and professional institutions.

Armed with increased financial literacy, many clients are highly-qualified professional managers capable of overseeing different arms of their families' wealth management, including succession planning, investments, insurance and philanthropy.

All this is happening even as fund flows into the Singapore wealth management ecosystem continue to accelerate, attracted by the strong regulatory regime, political stability and stable economy. Meanwhile, an ageing population and rising mass affluence are driving the demand for retirement planning and wealth management domestically.