Standard Chartered's $200 Billion Wealth Management Ambition

Standard Chartered, a multinational banking and financial services company, has set an ambitious target to acquire $200 billion in net new money (NNM) over the next five years. The bank, with a strong presence in Asia, Africa, and the Middle East (AAME), plans to achieve this goal through strategic expansion, product innovation, and enhanced client experiences.

The bank's strategy focuses on attracting and retaining affluent clients in the AAME region, particularly Global Chinese and Global Indian clients. Standard Chartered aims to leverage its extensive network of global wealth hubs in Hong Kong, Singapore, the UAE, and Jersey to serve clients seeking geographical diversification. The bank will employ multilingual Relationship Managers (RMs) and specialists to provide culturally attuned, cross-border wealth solutions tailored to these clients.

To enhance its product offerings and attract high net worth individuals, Standard Chartered will invest in several key areas. Firstly, the bank plans to expand its relationship manager team by 50% by 2028, focusing on international banking needs. Secondly, it will accelerate product innovation and digital client journeys, improving brand positioning as a leading wealth manager. Additionally, the bank will upgrade branches to meet the needs of high-value clients and elevate the client experience across its global network.

Standard Chartered will also deepen partnerships to help clients build resilient and opportunistic portfolios through its open-architecture platform. The bank plans to integrate advanced capabilities like structured products and risk analytics into its proprietary advisory platform, "myWealth Advisor," further strengthening its advisory services.

The bank's Wealth Solutions income is well diversified across investment funds, capital market products, and bancassurance. Standard Chartered aims to achieve double-digit wealth income growth through continued product innovation and platform enhancements.

The bank's ambitious goal is supported by data showing a surge in demand for wealth management services. By 2030, the industry's revenues are expected to grow by $254 billion, doubling 2021 revenues (Bain & Company, 2022). This growth, combined with the capital efficiency and recurring revenue streams characteristic of wealth management businesses, presents a significant opportunity for Standard Chartered to drive sustainable growth.

Standard Chartered's strategy aligns with the evolving preferences of emerging customer segments. These customers tend to be more self-directed and self-educated, preferring hybrid engagement models that combine digital and human interactions (Aite-Novarica, 2019). The bank's focus on product innovation, digital client journeys, and enhanced client experiences positions it well to capture this growing demand.

In conclusion, Standard Chartered's $200 billion net new money target is a testament to the bank's ambition and strategic vision. By expanding its relationship manager team, accelerating product innovation, and enhancing client experiences, the bank aims to capture a significant share of the growing wealth management market. With a strong presence in the AAME region and a focus on Global Chinese and Global Indian clients, Standard Chartered is well-positioned to achieve its wealth management aspirations.