HSBC Private Bank leverages entrepreneurial wealth and institutional access to drive growth

HSBC Private Bank is focused on leveraging HSBC’s strengths across different areas, particularly by bringing together private banking and corporate and investment banking solutions to serve both clients’ personal wealth and operating business needs. This is part of a broader effort to reinforce key capabilities: serving entrepreneurs as a universal bank, focusing on wealth planning and trust services, and leveraging its global network to support clients whose needs are increasingly global.

Global entrepreneurial wealth proposition

HSBC Private Bank is strengthening its entrepreneur wealth proposition. Tommy Leung, head of HSBC Private Bank South Asia, said, “We are here to support entrepreneurs. If you look at the private bank, two-thirds of our clients in Singapore are entrepreneurs. We bring the whole universal banking model together to service clients, not just their private banking requirements but also their operating business needs and legacy requirements.”

With much of an entrepreneur’s personal wealth  tied to the operating company, HSBC’s intention is to bring together teams from different parts of the bank to serve the client holistically. The proposition brings together the Private Bank’s relationship with the business owner and the Corporate and Investment Bank’s (CIB) touchpoints with the operating company’s chief executive officer (CEO) and chief financial officer (CFO), creating a win-win situation.

Leung said the integrated model enables HSBC to combine its CIB and Private Bank capabilities to support entrepreneurs across their business and personal wealth needs. For example, in a capital raising, HSBC can draw on its broader network and capabilities beyond the entrepreneur’s immediate funding needs. This can include bringing in specific investors who could help the owner gain new partners or customers, or access new markets.

Institutional tools for Private Bank clients

As wealth management products become increasingly commoditised, HSBC Private Bank is bringing institutional-level solutions to its clients. Leung said, “Products are only one part of the equation. Increasingly, differentiation comes from the breadth of capabilities, quality of service and how we bring these together around a client’s needs.”

HSBC is focusing on investment access, analytics and portfolio capabilities alongside its product offering. Leung points to HSBC Private Bank’s partnership with HSBC Asset Management, which brings institutional solutions to private banking clients. He cited an institutional-grade global equity investment strategy developed by HSBC Asset Management that was historically available to institutional investors and is now extended to eligible private banking clients. He said the intention is to bring more institutional-grade investment capabilities to ultra-high-net-worth clients.

Access to institutional-grade solutions is one of the pillars of HSBC Access, a proposition launched by HSBC Private Bank in Hong Kong in June. HSBC Access also provides investment opportunities and specialist insights.

Leung said, “HSBC Access brings together a range of capabilities for eligible private banking clients, including access to a range of investment opportunities, including direct investments, co-investments and exclusive private market opportunities.” 

He noted that the proposition also facilitates curated introductions to individuals and companies served by HSBC Innovation Banking, including founders of technology start-ups who may be of interest to private banking clients.

The use of institutional tools also extends to analytics and risk management. The Private Bank offers its clients the Prism Advisory Solution, an institutional-grade solution that integrates Aladdin Wealth™ technology from BlackRock to analyse portfolios under different market scenarios and model correlations between risk factors.

Leveraging the trust business

HSBC Private Bank also draws on its trust business to support clients with succession planning and philanthropy. The business, which celebrates its 80th anniversary this year, remains part of the bank’s wealth offering. Leung said, “HSBC Trust and Fiduciary Services can hold a broad range of assets, subject to appropriate due diligence and acceptance criteria, which gives us flexibility in supporting clients with complex wealth and succession needs.”

The trust business also supports clients’ philanthropic needs. Leung said HSBC Trust and Fiduciary Services in Singapore manages philanthropic and charitable trusts across areas including education, arts and science advancement, poverty relief, environmental protection and climate change mitigation.

He explained: “When it comes to philanthropy, clients are passionate about different areas. They don’t want to burden the next generation with this responsibility. Through our trust capabilities, we can help clients put appropriate structures in place to support their philanthropic intentions during their lifetime and beyond.”

As private banking undergoes the Great Wealth Migration, the trust offering can support clients’ needs across generations. It also enables HSBC Private Bank to address operating business, personal investment and succession planning needs within a broader wealth proposition.