10Banks strengthen wealth management as funds of over one hundred million won move
10Funds belonging to ultra-high-net-worth depositors with deposits of over one hundred million won are moving from deposits that had received special interest rates into funds, securities, insurance, and other products. The banking sector is shifting its focus from attracting deposits to wealth management (WM) operations.
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10Funds belonging to ultra-high-net-worth depositors with deposits of over one hundred million won are leaving bank deposits. This phenomenon is changing the banking sector’s sales focus.
Some depositors had placed large sums in deposits while receiving special interest rates. These funds are being reallocated to a variety of investment products, including funds, securities, and insurance.
Banks are working to expand wealth management (WM) services in response to declining deposits. Hiring of dedicated WM staff and partnerships for products are increasing.
While deposits attracted by special interest rates are declining, efforts to secure fee-based revenue are growing. Banks are strengthening investment consultations and portfolio proposals for customers.
The speed and scale of ultra-high-net-worth fund movements vary by customer segment. Some banks said they had confirmed fund outflows among certain groups.
As fund inflows into securities firms and asset management companies have been detected, banks are reorganizing their wealth management product lineups. Banks are changing their sales approaches with the goal of retaining customers and diversifying revenue sources.
The banking sector is currently making every effort to strengthen asset management. The flow of funds from ultra-high-net-worth depositors is directly affecting short-term performance and product composition.
Sources: 매일경제 경제
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