Like other wealth management institutions, UOB Private Bank provides a full spectrum of wealth management and wealth creation services, with a particular emphasis on wealth preservation through prudent risk management.
However, rather than competing head-to-head with its larger peers, the bank, supported by its strong Asian heritage, solid Asean footprint, and growing penetration into Greater China, has carved out a distinct and effective wealth management strategy.
Positioning itself as a reliable partner for business owners, who make up about 70% of its clients, UOB Private Bank finds strength in the broader bank’s resources such as corporate banking expertise, to support the needs of clients across the developed and emerging markets of Asia.
As of June 30 2024, assets under management (AUM) across UOB’s entire wealth continuum (i.e., privilege banking, privilege reserve and private bank) stood at S$182 billion (US$140.91 billion), of which more than half is attributed to private wealth (privilege reserve and private bank), up 27% year-on-year.
On the AUM for UOB Private Bank alone, the bank has seen a healthy 12% compound annual growth rate from S$70 billion in 2021 to S$88 billion in 2023 and S$93 billion in June 2024.
Over the past two years, the bank has acquired S$22.5 billion of net new assets and remains on target to grow its AUM to S$145 billion by 2026.
Powerful economic bloc
In an interview at the bank’s Singapore headquarters, Chew Mun Yew, the head of UOB’s private banking business, discussed the bank’s “One Bank” approach to supporting Asian ultra-high-net-worth (UHNW) families in building and preserving their wealth and designing their intergenerational wealth transfer plans.
“Our established clients and many of our prospective clients continue to be keenly interested in Asean, and as the bank with the strongest Asean presence, they value the connectivity that we can bring to them,” says Chew.
Chew points out that the bank’s foresight in recognizing and staying committed to Southeast Asia's potential as an economic bloc has significantly paid off for its wealth management business. “The bank has leveraged the region's economic growth and this strategic positioning has led to substantial growth in new assets,” he says.
Taiwanese example
Historically, Taiwan, along with Indonesia, has been a key player in offshore wealth management, principally driven by the pragmatic risk management decisions of wealthy business families who have gone through Asia’s numerous financial and political peaks and troughs.
Traditionally, many Taiwanese investors preferred Hong Kong as a wealth centre, but China’s growing influence, the extended lockdown during the pandemic, and ongoing worries over US-China relations have increasingly swayed them to shift their sights towards Singapore.
Chew notes that over the past decade, Taiwanese businesses have also diversified manufacturing operations out of China for both cost and geopolitical reasons. “Vietnam, Thailand, and other Southeast Asian countries have emerged as stable alternatives for Taiwanese manufacturers,” he notes.
And with its established Asean network aligning with that shift, UOB has further bolstered its influence.
“This movement highlights Taiwan's evolving business dynamics as it adapts to regional economic and geopolitical shifts, with Singapore emerging as a preferred destination for the wealth and corporate needs of Taiwanese clients,” Chew says.
Asian wealth manager
The recent instability observed around some international private banks has led many UHNW individuals to find comfort in dealing with a strong, locally rooted institution.
“Yes, UOB has benefited from clients seeking more stable, locally focused institutions, leveraging deep regional presence and strong understanding of the local market,” he explains.
“The bank’s solid foundation, synergies within the group, and favourable cost-income ratio figures have also allowed us to capitalize on the challenges faced by international banks.
“Additionally, our growth in clients and AUM has been bolstered by Singapore’s political and economic stability, making it an attractive alternative for clients concerned about instability elsewhere.”
A growing number of Singaporean wealth managers have shown interest in exploring business opportunities in the Middle East, particularly in the financial hubs of Dubai and Abu Dhabi. However, UOB does not appear quite enthusiastic about following this trend.
“Our focus is on Asean and Greater China, leveraging the strength of our network across the region. Despite the ongoing global uncertainties, Asean is a bright spot and is growing faster than the rest of the world. Indeed, Asean is on track to become the world’s fourth largest economy by 2030 from its current fifth position,” says Chew.
At the same time, Asia-based wealth managers are looking outside the region for influence and growth while a number of Swiss banks are building affiliations with their Southeast Asian counterparts. Chew says he is well aware of such moves, but he does not see it as a potential threat that could dilute his bank’s business.
“We pride ourselves as a Singapore private bank with an established track record for being stable, solid and prudent, anchored by Asian values that focus on trust and long-term relationships. Our ambition is to be the trusted private bank in Asia.”
“Also, our Citi acquisition has strengthened our market position and customer base in Indonesia, Malaysia, Thailand and Vietnam, placing us in a prime position to capitalize on the growing wealth flows within the region.”
The ongoing generational transfer of wealth across Asia influences how UOB provides its wealth management services. The bank is positioning itself as the "Asian wealth advisor", focusing on helping business owners and professionals manage generational success.
“Many of our clients' wealth is still in the first generation, and UOB, as a third-generation bank itself, understands the importance of long-term relationships and building trust, which is embedded in our DNA,” Chew says.
“While wealthy families may still maintain relationships with international banks, we seek to be their primary bank for the portion of wealth tied to Asia, particularly leveraging our strong Asean presence. Our familiarity with the region and ability to connect businesses and people within Asean also appeal to clients expanding domestically, regionally, and internationally, making the bank an attractive partner in navigating the complexities of intergenerational wealth transfer,” he adds.
Sustainability, technology
Sustainability is an increasingly important focus for UOB Private Bank, particularly as younger clients are showing a growing interest in environmental, social and governance (ESG) investments. Nearly half of the bank’s clients now have portfolios with ESG-rated investment solutions, and this trend is expected to continue.
Chew points out that the bank has integrated ESG considerations into its advisory framework, ensuring that clients can incorporate sustainable investment practices into their wealth management strategies. Additionally, it leverages its expertise across the broader bank to help clients in hard-to-abate industries transition to more sustainable business models, particularly in the Asean region where there is a significant shift towards renewable energy and sustainable business practices.
Artificial intelligence (AI) is also making its presence felt in private banking, an issue that Chew says brings both opportunities and challenges.
The technology can enhance human learning, comprehension, problem-solving, decision-making, productivity, creativity, and autonomy. But when managing significant personal wealth, face-to-face interaction remains an essential factor.
According to Chew, the balance lies in using AI to complement human skills, refining and learning from its output to stay ahead of emerging risks.
“AI offers immense potential but requires constant refinement through feedback loops, where past recommendations are evaluated and improved. It's a tool that, when used effectively, can enhance decision-making, but must be complemented by human insight to achieve the best outcomes,” he says.
Talent pipeline
To achieve its ambitious target of S$145 billion in AUM by 2026, the bank has hired more than 140 bankers in the last two and a half years, and aims to reach 400 by 2026.
The Singaporean lender has an internal pipeline of private banking candidates who start honing their craft in the lower-threshold wealth management units.
UOB believes in grooming its own talent and fostering a strong sense of culture and loyalty within the organization. While the bank also hires externally, it seeks to balance internal promotions with external hires to ensure a sustainable growth trajectory for its private banking division.
“We have a healthy internal pipeline for cultivating future private bankers. Many of the bank’s current private bankers have risen through the ranks, starting in mass affluent banking before progressing through priority banking and eventually reaching the private banking segment,” says Chew.
In his case, before joining UOB in 2021, Chew held leadership roles at Bank Julius Baer, UBS, and Carlyle Asia. A former senior regulator at the Monetary Authority of Singapore, he holds a master’s degree in philosophy from Oxford and an MBA from INSEAD.
At UOB, Chew has continued to support the bank’s Asia-centric strategy, believing that the region, particularly Asean, holds enormous opportunities to grow its wealth management business.
