Private banking industry experiences rapid growth in recent years

Source : Channel NewsAsia, 10 September 2007

SINGAPORE : Asian markets are set to grow in the long term, despite the recent turmoil, according to French lender Societe Generale, which opened its new private-banking office in Singapore on Monday.

With a rapid growth in number of Asian investors who want to diversify globally, it says new asset classes like private equity will stand to gain.

The private banking industry has been experiencing explosive growth in recent years.

And according to Societe Generale, one key challenge facing the industry is talent.

Pierre-F. Baer, CEO, SG Private Banking, said: "Definitely there are not enough bankers to take care of all the clients' needs today. We're hiring more people right now. We have a total staff of about 500 in Asia Pacific.

"If we continue our growth rates of 30 to 35 percent per year, we're looking at anywhere between 20-25 percent increase in staff. And this should take us over the next 2, 3 years."

To plug the manpower crunch, private banks are looking to hire from areas like Dubai.

They will then relocate employees to Singapore or other parts of Asia to ride on the growth.

Mr Baer said, "The way to attract them is to have attractive office spaces, (a) conducive working environment, training programmes to help them with their own career."

Societe Generale is just one of the increasing number of financial firms growing their private banking business in Singapore.

Its new office at One Raffles Quay is able to accommodate another 30 percent more people on top of existing staff.

Assets managed by fund managers based in Singapore grew by 24 percent last year to hit S$891 billion. - CNA/ms