By Nam Hyun-woo
Foreign banks operating here have been turning their eyes toward wealthy customers recently, introducing a series of wealth management services tailored to them.
Standard Chartered Bank Korea (SC Bank) said Monday that it has expanded its priority banking (PB) services from two PB Centers to eight PB Cluster Centers to provide better asset management services to wealthy customers.
The bank said PB Cluster Center refers to a flagship PB branch serving as an operating base. It’s opened six centers in Seoul ― Cheongdam, Apgujeong, Dogok, Seocho, Jongno and Mokdong ― plus one in Daegu and one in Busan.
The cluster centers offer tax, investment and insurance experts and counseling services for private bankers. The bank said the centers will expand their asset management channels accessible by customers.
Previously, the bank’s two PB centers took care of customers whose assets surpassed 1 billion won ($870,000). By expanding the service, the bank said it plans to provide tailored asset management services for increasing PB customers who are looking for suitable investment tools in the current environment of low interest rates.
As part of the plan, the bank will invest 10 billion won into the establishment of investment infrastructure, including foreign bonds or exchange-traded funds (ETFs) trading systems, so that it can offer Standard Chartered Group’s global financial products in Korea.
“By expanding the service, the bank seeks to develop private bankers’ capabilities so that it can provide innovative products and services to customers,” said an SC Bank official.
Citibank Korea also announced Monday that it had introduced its Total Wealth Advisor (TWA), a comprehensive wealth management advisory system.
According to the bank, its wealth management experts will use the TWA system to customize the financial goals of customers such as wealth increase, protection or retirement fund creation, and counsel them to establish diversified portfolios to achieve those goals.
TWA facilitates wealth management services based on the Citi Model Portfolio, developed for Korean investors by Citi’s global investment experts. The bank said Citi’s experts developed the portfolio by analyzing markets around the world and forecasting markets by asset category.
“It can help customers set a direction for efficient asset allocation and investments in accordance with individual customers’ investment tendencies,” the bank said in a statement.
“In order to provide the best wealth management services in Korea, the bank expanded the customer segment eligible for the service last year,” said Citibank Korea CEO Park Jin-hei.
“We’re pleased to be able to provide more advanced wealth management services to our customers through a systematic and standardized process thanks to the recent launch of TWA.”