Banks now create special teams to deal with HNWIs (High net worth individuals)
Banks now create special teams to deal with HNWIs (High net worth individuals)
Sreekanth Ravindran
5th June 2023
Many banking institutions in Phnom Penh have begun creating special teams or divisions to deal with High Net Worth Individuals (HNWIs) – both citizens and expatriates, reveal sources within the banking industry.
As per the existing definitions within the financial sector, HNWIs are individuals with more than $1 million in investible assets and Ultra High Net Worth Individuals (UHNWIs) are those possessing over $30 million in investible assets.
According to sources, the formation of these teams is in light of heavy competition between the private banks here to generate more businesses and profits along with the recent rise of the millionaire population in Phnom Penh and other Cambodian cities.
Speaking to Khmer Times, a senior relationship manager with a prominent bank in the country said there is a huge race among bankers to attract HNWIs and UNHWIs. “The millionaires, be it a citizen or an expatriate, are of great importance to banking institutions. The profits generated by any bank is directly proportional to the volume of money it deals during a specific period. The more the volume, the more net profits; the equation is that simple.”
He said the volume spirals when HNWIs and UNHWIs become clients of any bank. “In terms of money volume, dealing one UNHWI equals handling at least 10 HNWIs and dealing one HNWI equals handling at least 50 to 100 customers from the moderate-income group.”
However, he added that these special services are not at the cost of ordinary customers. “We must understand that ordinary customers with moderate-income levels constitute the backbone of Cambodia’s banking system and will remain so in the future as well. But, what the banks are trying to do, is to boost their profit margins by creating these special teams and adding special services.”
A client service adviser with another prominent bank said “wooing HNWIs and UNHWIs has become a key competition area among the banks in the Kingdom”. “Special teams have been created because it is definitely a tough task. If you see, there are no specific reports on the number of citizens or expat millionaires living in Phnom Penh or any other Cambodian cities.
“In the US, European Union, Singapore or Hong Kong, banking professionals can easily zero in on HNWIs. But that is not the case in Cambodia. There are many here, but there is also obscurity, which is an obstacle to reaching out to them.
“So these special teams carry out special research on the investment scenario before coming up with the list of potential clients. I must say, the number of millionaires, especially in Phnom Penh, has been on a great rise during the past decade, except for the pandemic years,” the senior banking professional pointed out.
Saeed Rizvi, an expatriate investor in the Kingdom, said he is really happy with the banking services he has been receiving in Phnom Penh. “I have businesses in Cambodia, Vietnam and other Southeast Asian countries. I am really happy with the banking services I have been receiving here. We must not forget the fact that banks play an important role in any businessman’s success.
“I have noticed that the banks here give maximum emphasis on customer relationships, especially in terms of offering specially-tailored solutions to businessmen. The Kingdom’s banking industry is really excelling on all fronts including technological innovation.”
When contacted, Shathel Fahs, an entrepreneurial and investment consultant based in Phnom Penh, said he needs to thoroughly review the topic before commenting on it.
According to leading global residency consulting firm Henley and Partners, the number of HNWIs and UHNWIs seeking residency through investments in Southeast Asian countries including Cambodia, has been on an unprecedented increase during the past few years.
https://www.khmertimeskh.com/501301995/ ... ith-hnwis/
"That was probably Londo...He is always shitty." - Marvin
Wealth management teams in banks are nothing new, back home or even here in the KoW. What might be new are the individuals tasked with washing Chinese money here in property/business projects, or they are just dismally incompetent, can't' decide yet.
Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
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