Friday, 14 June 2024

HSBC Taiwan posted 13% growth in wealth revenue, as high-net-worth customers increase

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HSBC Taiwan posted a 6% growth in customer base and a 13% increase in wealth revenue in 2021, on the back of its solid digital infrastructure and personalised investment solutions for high-net-worth (HNW) customers.

  • HSBC Taiwan’s HNW customers grew by 18%; wealth revenue increased by 13% 
  • The bank continually enhanced its digital capability to fulfil customer needs
  • Doubling ESG-compliant asset under management (AUM) and leading  practices by offering complete solutions

HSBC Taiwan was recognised as Best Wealth Management Bank in Taiwan at The Asian Banker’s Excellence in Retail Financial Services Programme 2022. Other finalists were CTBC and E. SUN Bank.

HSBC Taiwan, one of the leading foreign banks has provided clients with a global one-stop wealth management service. HSBC Group sees great growth potentials in Taiwan, which is regarded as the key wealth management centre in the region.

In 2021, HSBC Group announced an investment of approximately $146 million (TWD 4.4 billion) in Taiwan over five years, covering investment, insurance and system upgrades for clients. The group also implemented technology upgrades. It will increase its employees to 460, by recruiting more relationship managers and marketing staff to support the booming wealth management market.

HSBC Taiwan has provided $2.1 billion (TWD 62.8 billion) in environmental, social and governance (ESG)-related financing in Taiwan from 2020 until the first quarter of 2022. It actively supported the clients’ needs for sustainable development and transition to carbon neutrality.

HSBC Taiwan’sHNW customers grew by 18%; wealth revenue increased by 13% 

In 2021, HSBC Taiwan posted an 18% increase in HNW customers, a 13% growth in wealth revenue and a 29% rise in investment revenue, the highest since 2015. It achieved a 31% growth in assets under management (AUM). Notably, the AUM of ESG products has doubled year-on-year (YOY), which accounts for 5% of the total AUM, as a result of 33% ESG product expansion.

When the government ordered restrictions on outdoor activities and encouraged people to stay at home, branch customers suddenly decreased by more than 40%.  HSBC Taiwan’s solid infrastructure on digital platform, successful strategy on HNW customers and agile business resulted in a 16% growth in customer base. It saw an 18% increase in HNW customers. With the newly acquired affluent customers, the penetration rate of wealth management reached 28%. HSBC Taiwan’s HNW customer growth was higher than E.SUN Bank and CTBC, which registered a 10.2% and 9.12% increase respectively.

The bank continually enhanced digital capability to fulfil customer needs

HSBC is one of the foreign banks that provides a full online journey from account opening to investment. Documents can be collected digitally, so there’s no need to visit the branches. With its user-friendly digital services, wealth management customers can transact on their investment accounts and manage their portfolios with relative ease. The digital wealth management customer base witnessed a significant growth in 2021. Its customers in digital insurance and equity have grown by 32% and 70% YoY, respectively.

HSBC Taiwan provides “anywhere advisory sales journey and anytime wealth portfolio review” to customers. They can digitally complete the wealth management process from the identification of customer needs and suitability check, to product selection. The newly launched video insurance policy journey embeds insurance into customer portfolios, which can be reviewed using mobile phones. This enhancement benefited 37% of affluent customers with insurance policies.

The launch of same-day equity trading makes HSBC’s digital platform ahead of its competitors, Citibank Taiwan and Taipei Fubon Bank in providing services to consumers. The day trading service enables maximum flexibility to take opportunities and mitigate overnight risks in customers’ equity investments. In 2022, HSBC Taiwan will further launch an online advisory journey, in which relationship managers and customers can interact and receive advisory services using mobile phones.

HSBC doubles ESG-compliant AUM

HSBC Taiwan supported the global endeavour on sustainable development and Taiwan's pathway to net-zero emissions in 2050. HSBC is committed to achieve a net zero bank by 2050 and targets to reach net zero in its operations by 2030. As one of the leading banks in ESG practice among major wealth managers in Taiwan, it has doubled its ESG AUM in 2021 to 5% of the total AUM. It has 155 ESG investment products, which is a 33% product expansion.

Linda Yip, head of wealth and personal banking at HSBC Taiwan said, “ESG is an imperative global trend that gradually receives attention in Taiwan. HSBC, one of the leading global banks is dedicated to introduce ESG concept with a full range of products.”

In addition to wealth management products, Yip said, they launched a mortgage campaign for green buildings to encourage customers to contribute to environmental sustainability when reaching important milestones in life. “Through this campaign, I hope the concept and benefits of green buildings can be more acceptable to our customers,” she added.

HSBC provides a wide spectrum of wealth product solutions and more than 100 products, including mutual funds, stocks, exchange traded funds (ETFs) and bonds, with diversified ESG considerations such as aqua, social responsibility and climate change.  The comprehensive ESG product range can address the growing customer demand for ESG-investment opportunities.

As part of its corporate social responsibility (CSR), HSBC Taiwan has launched a tree-planting campaign. A tree is planted for every digital account opened (DAO) to promote DAO adoption and restore forests that were damaged by fire. 

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