United Overseas Bank (UOB), a prominent Singaporean lender, has revealed ambitious plans to double its private wealth assets under management (AUM) in the coming years.
The move comes as the bank capitalizes on the burgeoning wealth inflows into Singapore and the broader Southeast Asian region.
According to Chew Mun Yew, UOB’s head of private bank, the bank’s total AUM surged to a record S$176 billion ($132.04 billion) as of December last year, with assets from private wealth clients constituting over half of this total.
Wealth Flow Opportunities in ASEAN Region
Chew expressed confidence in the growth prospects of the wealth management sector, citing increased opportunities for wealth flow into the ASEAN region.
With Singapore experiencing strong organic growth and becoming a preferred destination for affluent individuals, UOB anticipates sustained momentum in wealth management.
This outlook aligns with the broader trend observed in Singaporean wealth management, which has witnessed significant inflows from regions like China and Hong Kong amidst economic uncertainties and geopolitical tensions.
Southeast Asia’s Rising Wealth
Southeast Asia emerges as a significant driver of wealth growth in the region, with countries like Malaysia, Vietnam, and Indonesia poised to witness substantial increases in their ultra-high net worth population.
According to a wealth report by Knight Frank, these countries are projected to experience growth rates outpacing the global average, further underscoring the region’s attractiveness for wealth management activities.
Singapore’s strategic positioning as a wealth hub within Southeast Asia is bolstered by favourable policies, including tax incentives that encourage the establishment of family offices, according to Knight Frank.
UOB’s Expansion and Collaboration Strategy
UOB’s expansion efforts, including the acquisition of Citigroup’s Southeast Asia retail business in 2022, have bolstered its presence in Southeast Asia.
Chew highlighted the bank’s focus on cross-segment collaborations within the organization to maximize cross-selling opportunities and enhance client penetration rates.
With more than half of UOB’s total assets contributed by Singapore and significant contributions from other Southeast Asian countries and North Asia, the bank is strategically positioned to capitalize on the region’s growing wealth landscape.
