HSBC Philippines ventures into wealth management

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Lawrence Agcaoili – The Philippine Star

September 13, 2022 | 12:00am

MANILA, Philippines — British banking giant Hongkong and Shanghai Banking Corp.(HSBC) has forayed into the wealth management business as the bank aims to double the number of premier clients in the Philippines.

HSBC Philippines president and CEO Sandeep Uppal said the launch of HSBC Wealth is a milestone in the bank’s 147-year history in the Philippines.

“This demonstrates our confidence in the country, reaffirms our commitment in bridging customers with the rest of the world and supports HSBC’s ambition to be the leading international wealth manager in Asia,“ Uppal said.

HSBC aims to play an important role in customers’ lives – fulfilling their aspirations and connecting them to investment opportunities locally and around the world, through its International Wealth Hub, Private Banking offices globally and HSBC Wealth through the recently incorporated HSBC Investment and Insurance Brokerage Philippines Inc. (HIIB)

James Cheo, chief investment officer for Southeast Asia at HSBC Private Banking and Wealth, said the launch of the new business is timely given that in the Philippines, rising wealth is observed through increasing bank deposits and investments on securities.

“The Philippines has one of the most favorable demographics in the region. With a rising and young population, the Philippine economy is in a strong position to reap the benefits of its demographic dividends in the coming years,” Cheo told reporters.

HSBC Asia chief economist Fred Neumann said in a report titled “The Rise of Asian Wealth” that economies that are growing rapidly such as that of the Philippines, tend to accumulate wealth faster and this is why the number of Filipino multi-millionaires is expected to more than double by 2030.

HSBC Wealth vice chairman Peter Faulhaber said HSBC Wealth now offers a range of unit investment trust funds (UITFs) that cover a range of asset classes and risk profiles, offering customers a broader choice of investment products to help customers create a diversified portfolio.

This expanded range of UITF products complements HSBC Wealth’s currently available fixed income investment and investment-linked insurance products. These funds come in different currencies and are managed by trusted partners who are the key players in the asset management space locally, and across the globe.

“This new brokerage business marks our continued investments in the Philippines with new capital, a wider suite of products and better customer experience through our enhanced digital capabilities,” Faulhaber said.

Faulhaber said the foreign bank aims to double the number of its premier clients in the Philippines.

On top of these new products by HSBC Wealth, HSBC Philippines would continue to offer fixed income products that provide capital protection with dividends through the main bank; and investment-linked insurance products available in both single pay or regular pay, giving customers both protection and an opportunity to grow their investments.

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