PETALING JAYA: CIMB Bank Bhd is projecting to double its wealth assets under management (AUM) by 2030 while strengthening cross-sell income, as the lender launches its new private wealth segment designed to advance the needs of affluent clients across Asean.
CIMB Group
consumer banking chief executive officer Haniz Nazlan pointed out that wealth is one of the group’s key growth engines.
“This is the rewiring of wealth, and it is happening in one of the most dynamic regions in the world.
“Our affluent segment altogether – including preferred and private wealth – has grown approximately 6% in the past,” Haniz told reporters at the launch yesterday.
He said Asean today has grown into a US$4 trillion (approximately RM16.28 trillion) economy and, over the long term, has delivered an economic growth of around 4% annually, well above many developed markets.
“The region has approximately 700 million people, a young median age of about 30, and a growing silver generation that already makes up 8% to 15% of the population depending on the country,” Haniz said.
He further added that the affluent population in Asean is expected to grow 5% to 6% annually, with the middle class accounting for 65% to 70% of the population by 2030.
Key drivers include rapid urbanisation and rising income levels, with regional gross domestic product per capita tripling over the past four decades.
“As a result, the region is undergoing one of the largest intergenerational wealth transfers in history, as wealth moves across generations with differing priorities, risk appetites, and financial goals.
“Wealth is not static in one market anymore – there is huge demand for regional and global investments from customers living and working across borders,” he added.
To capture this demand, he said CIMB leverages an extensive regional presence of over 600 branches and 1,500 relationship managers.
Its core operating markets with full-fledged banking include Malaysia, Indonesia, Singapore, Thailand, Cambodia, and the Philippines.
“One of the key trends we are seeing across the region is demographics.
“Within Asean, urbanisation is one key driver alongside rising income levels,” said Haniz.
Explaining CIMB’s affluent segment structure, CIMB Group consumer banking chief investment officer Patrick Chang noted that CIMB Preferred caters to clients with a minimum AUM of RM250,000, while the new private wealth segment targets individuals with a minimum AUM of RM1mil.
