CIMB Group, Malaysia’s second-largest bank in terms of assets, has announced its intention to expand its private wealth business to Singapore and Thailand by the end of the year. This move is part of a larger plan to double the bank’s wealth assets under management by 2030.
Haniz Nazlan, the CEO of group consumer banking at CIMB, revealed on Monday that this expansion activity is targeting the rapidly increasing affluent segment in Southeast Asia. This strategic move follows the successful launch of the bank’s private wealth business in Indonesia earlier in the year and in Malaysia on the same day.
According to Nazlan, the ASEAN economy, worth US$4 trillion, has been experiencing robust annual economic growth rates of approximately 4%, which is significantly higher than many developed markets. This economic dynamism is expected to stimulate a 5% to 6% annual increase in the region’s affluent population. Furthermore, the middle class is projected to comprise between 65% and 70% of the ASEAN population by 2030.
Factors such as growing incomes, escalating cross-border investments, and a notable surge in intergenerational wealth transfers are propelling the market.
Daniel Cheong, CIMB’s head of consumer banking for Malaysia, revealed that the new private wealth service is tailored to clients who have at least RM1 million ($244,612) in assets under management. This offering is positioned above CIMB Preferred, the bank’s mass-affluent priority banking segment, which requires a minimum of RM250,000 in assets.
CIMB’s Private Wealth service offers clients dedicated relationship managers, treasury solutions, investment advisors, customized investment products, succession planning, and digital wealth capabilities.
Nazlan noted that affluent clients are progressively seeking advice that goes beyond mere investment product selection. He explained that they want guidance on wealth protection, preparation of their children’s futures, access to global opportunities, and making informed decisions in an unpredictable world.
Nazlan disclosed that CIMB’s wealth assets under management (AUM) were approximately RM250 billion in the preceding year. However, he refrained from providing interim growth targets or customer acquisition figures, stating that it is still the early stages of the Private Wealth proposition’s rollout.
What is CIMB Group’s plan for its private wealth business?
CIMB Group plans to expand its private wealth business to Singapore and Thailand by year-end, aiming to double its wealth assets under management by 2030.
Who are the target clients of the new CIMB private wealth service?
CIMB’s private wealth service targets high net-worth clients who have at least RM1 million ($244,612) in assets under management.
What are the key services offered by CIMB’s Private Wealth service?
CIMB’s Private Wealth service offers dedicated relationship managers, investment advisors, treasury solutions, succession planning, customizable investment products, and digital wealth capabilities.
