JAKARTA \u2013 OCBC, Singapore\u2019s second-largest bank by assets, said that demand for wealth management services is rising in Indonesia, driven by wealthier folks and increased awareness about financial planning. <\/p>\n
OCBC Indonesia director Johannes Husin said a growing middle-class population with increased disposable income and seeking professional guidance for wealth management is driving the demand. <\/p>\n
There is also increased awareness among Indonesians on financial planning and investment diversification, while the younger generation\u2019s preference for digital solutions also leads to the emergence of online wealth management platforms, he said.<\/p>\n
\u201cIn the past few years, we have seen that deposit funding, assets under management, with regard to investments in the Indonesian market, have grown significantly. It is proof that the efforts by the Indonesian regulators to deepen the financial market are working effectively.\u201d <\/p>\n
Mr Husin, speaking to The Straits Times at Fairmont Hotel in Senayan business district, said the \u201cnew riches\u201d in Indonesia increased sharply in the past few years. <\/p>\n
This was accelerated by the Covid-19 pandemic, where a lot of money was saved up, he said. <\/p>\n
The funds that were saved up are being put to use for business development, he added, noting that Indonesia presents substantial investment opportunities, particularly due to its abundant natural resources and its large, young, and educated population \u2013 a key driver of both the workforce and consumer market.<\/p>\n
The super rich are also growing. <\/p>\n
Mr Husin said Indonesia\u2019s ultra-high-net-worth population grew 4.2 per cent from 1,420 in 2022 to 1,479 in 2023. The figure is expected to surge to 1,984 by 2028. These were figures from a Knight Frank wealth report published in 2024.<\/p>\n
He said OCBC is poised to target the newly-minted wealthy individuals, with its private and premier banking services. <\/p>\n
The bank, amid competition from other banks in Indonesia, wants to make its offerings more compelling to clients. Mr Husin said OCBC Indonesia\u2019s private banking unit collaborates with Bank of Singapore, the private banking arm of OCBC Group, in the form of sharing of best practices, market insights, trends and training.<\/p>\n
To provide a better private banking experience for high-net-worth Indonesian clients, Mr Husin said the bank maintains a client-to-relationship-manager ratio of no more than 1:65. <\/p>\n
\u201cThis is to ensure that our bankers can foster close, personalised relationships with each client. This enables our relationship managers to not only address immediate banking and investment needs but also provide holistic advice for long-term legacy planning,\u201d he said. <\/p>\n
He noted that many Indonesians opt to keep their money onshore, amid the government\u2019s push for onshore retention of earnings. <\/p>\n
This could create more opportunities for domestic firms to win clients over and grow onshore wealth management.<\/p>\n
\u201cBeing OCBC Indonesia, we are well-positioned to capture this… because a lot of Indonesia clients still prefer to have the money onshore,\u201d he said.<\/p>\n
The bank\u2019s wealth planning services involve assisting private banking clients in legacy planning for their onshore assets. <\/p>\n
\u201cWe expect more support to come from the regulator side. It is important when Indonesia wants to grow… and it\u2019s best to keep the capital onshore, and we are very much in the middle of it.\u201d<\/p>\n
OCBC Indonesia taps group synergies to provide a better banking experience. Those under the group\u2019s umbrella include asset management company Lion Global Investors, insurer Great Eastern and stock broker OCBC Sekuritas for access to Indonesian capital markets products. <\/p>\n
The bank also offers premier banking services for affluent individuals such as professionals and business owners who want to accumulate wealth and the convenience of doing local and overseas transactions. <\/p>\n
\u201cFor the business owners, we want to make sure that our banking capabilities from the business banking side can also be enjoyed by them. We want to make sure that whatever wealth they put with us can be fully monetised in case they need capital,\u201d Mr Husin said.<\/p>\n
He added that the consumer banking team works closely with the business banking team to make sure that clients can satisfy their needs without having to go to competitor banks. <\/p>\n
Meanwhile, the bank has seen a significant number of personal banking clients moving to premier banking within a few years.<\/p>\n
\u201cIt is about completing the life cycle of the financial journey and that\u2019s why it is important to create a fairly unique value proposition for each segment so when they move to the next level, they can feel the difference and develop loyalty.\u201d <\/p>\n
OCBCPrivate banking\/Wealth managementBanks and financial institutionsIndonesia<\/p>\n","protected":false},"excerpt":{"rendered":"JAKARTA \u2013 OCBC, Singapore\u2019s second-largest bank by assets, said that demand for wealth management services is rising in…\n","protected":false},"author":2,"featured_media":129779,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":{"0":"post-129778","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/129778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=129778"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/129778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/129779"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=129778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=129778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=129778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}