Standard Chartered said it plans to open a branch in Tokyo and target wealthy customers in Japan. The UK bank, which makes most of its p...

Standard Chartered said it plans to open a branch in Tokyo and target wealthy customers in Japan. The UK bank, which makes most of its profits in Asia, said it will try to attract doctors, lawyers, company owners and others who have more than ¥20 million ($187,021) of deposits. “We are a latecomer to private banking in Japan,” said Joji Aonuma in an interview with Bloomberg. “That's why we are targeting those middle classes as they need asset management services, but are too busy to be proactive. We want to offer high interest rates and low commissions as Singapore and Hong Kong do.” Standard Chartered said it will offer foreign currency deposit services and sell investment trusts and insurance products, including annuities. Further deregulation of Japan’s financial markets, particularly in the area of asset management is leading to a rush of interest in the area of wealth management from both local and foreign players. The Standard Chartered move follows plans by Mizuho Financial Group, Japan’s biggest lender, to set up a private banking unit and target clients who have more than ¥500 million in liquid assets. Sumitomo Life Insurance Co and Mitsui Sumitomo Insurance Co are also considering investing in the private-banking company, and are likely to form tie-ups in such areas as client referrals and product development. Nikko Cordial, a Japanese bank, also said recently it would join forces with Europe's Banque Privee Edmond de Rothschild to market trust services to wealthy clients. The demise of Citigroup’s private banking business in Japan due to regulatory difficulties last year is also encouraging new entrants. Citigroup ran one of the biggest wealth management operations in Japan before it was forced to close down the business. There are also many wealthy Japanese, who have so far been under-served by wealth managers. Research by Merrill Lynch found that there was at least 1.3 million Japanese who each have at least Y100 million to invest. Other foreign banks known to be beefing up their wealth management services in Japan include JP Morgan and HSBC Private Bank.