Bank of China (Hong Kong) has launched private banking services to high net worth individuals, aiming to tap an estimated surge in the population of such people over the next half decade.

Bank of China (Hong Kong) has launched private banking services to high net worth individuals, aiming to tap an estimated surge in the population of such people over the next half decade.

Unveiling the move, Jason Yeung, who is deputy chief executive of Bank of China (Hong Kong), noted that industry research shows that Asia-Pacific countries account for about 20 per cent of the total number of about 29 million HNW individuals with wealth between $1 million and $50 million worldwide, while that of China was estimated to be 3.4 per cent, or one million HNW individuals.

“It is expected that, the estimated number of HNW individuals in China will double by 2017, and China will surpass Japan as the second wealthiest country in the world in the next five years. It is beyond doubt that the growing number of HNW individuals in China and the rest of Asia will generate increasing demand for private banking services,” Yeung said.

The statement from the firm said the bank will offer “private and premium integrated wealth management services”, but did not elaborate on plans, such as recruitment or hires for this segment. The bank could not be reached for comment as it was outside of business hours.

The statement was upbeat about the business model, referred to as ‘1+1+1’.

“The service model of our premier private banking services ‘1+1+1’ captures the essence of our integrated solution to wealth management offered at the ultimate personal level. These figures are the pillars of our commitment to consistently deliver professional services to our customers, their families and their businesses; and to assist them to grow and pass on their wealth to future generations,” Yeung said.

Wendy Tsang, head of private banking of BOCHK, said: “The model of ‘1+1+1’ backed by our corporate banking and personal banking services provides integrated and one-stop solution to customers. In addition to the comprehensive services such as investment and consultancy, trust, estate planning as well as personal and corporate banking, BOCHK Private Banking will focus on the development of RMB products and services to meet the diverse needs of our customers.”

The bank sought to stress its financial strength – a fact that it said puts it in contrast with some Western peers. BOCHK’s long-term credit rating was raised by Standard & Poor’s by two notches (from “A-1” to “A+”).

Earlier in November, BoC commenced operations at its new wealth management centre in Hong Kong. The new branch, located at the heart of Causeway Bay, provides a wide range of professional and premier wealth management services for its high net worth clients. Apart from modern banking facilities, the centre also features paperless counter services and a 24-hour manned phone banking service.