DBS announces participation in the cross-border scheme for investors and residents in the Greater Bay Area.
The Hong Kong arm of DBS, Southeast Asia’s largest bank, has tied up with Shenzhen Rural Commercial Bank (SRCB) to offer wealth management services for mainland China investors, the two banks said in a press release Tuesday.
As finews.asia previously reported, the services will be offered for «Southbound» investors or residents in the nine mainland cities that form China’s Greater Bay Area.
DBS acquired a 13 percent stake last year in SRCB making it the largest shareholder. It now aims to use the Chinese bank’s local network to expand the wealth management business. The agreement also marks DBS ‘third WMC tie-up with a mainland bank. SRCB has 10 million individual customers and 280,000 small- to medium-sized enterprises (SMEs) as customers, the release indicated.
DBS said that more than 80 percent of its Southbound clients are completely new customers since the program’s October launch, with the average total invested amount per WMC customer reaching more than CNY130,000 (US $ 19,347), compared with the CNY16,365 market average, it said, mentioning China central bank data.
Jie Yuanpresident of SRCB, said the mainland bank has been deepening its collaboration with DBS since the Singapore bank took its stake, by working on improving customer services and introducing new technology.
As part of that, it intends to diversify and internationalize its investment product offering and provide digital banking services.