CTBC’s strategic approach to private banking growth through innovation and global expansion

CTBC Bank (CTBC) believes it has firmly established itself as a leader in Taiwan’s private banking industry, with significant growth in both domestic and international markets. In an exclusive interview, John Yang, Executive Vice President and Head of Private Wealth Management, and Freddie Chen, Senior Vice President and Head of International Private Banking, shed light on the strategies behind the bank’s recent success. The Private Privilege segment, targeting high-net-worth (HNW) clients, saw a 22% increase in assets under management (AUM) in 2023, while the international private banking business, based primarily in Singapore and Hong Kong, grew by 18%. These gains are driven by the bank’s emphasis on providing innovative services such as the Family Wealth Governance programme and leveraging advanced digital platforms like Wealth Chat. 

Strategic growth in Taiwan’s private banking sector

In 2005, CTBC became the first bank to obtain a wealth management license in Taiwan and the bank started offering wealth management services in Hong Kong by 2007. In 2012, the bank set up the International Private Banking (“IPB”) Division with two centers in Singapore and Hong Kongto support Taiwanese clients seeking to develop and manage wealth overseas. CTBC Bank launched the segment for HNW individuals, the Private Plus, in 2013 and officially launched a new service model for the UHNW individuals, the Private Privilege – providing a wide range of bespoke solutions tailored to the needs of UNHW clients, in 2018. The Private Privilege segment, catering to clients with assets exceeding NTD 150 million ($5 million), expanded by 22% in 2023, while the Private Plus segment, targeting clients with NTD 30 million ($1 million) or more, achieved an 8% increase. As of 2024, CTBC’s private banking division managed more than NTD 500 billion ($16 billion) in AUM, with $7 billion managed by its international private banking operations.

Yang attributed this growth to the bank’s comprehensive suite of wealth management services, particularly the Family Wealth Governance offering, which was introduced in 2020 and enhanced with Family Wealth Governance 2.0 in 2024. “Our clients seek more than just financial management; they require holistic solutions that address wealth succession, business sustainability, and family legacy. The Family Wealth Governance programme has been instrumental in attracting and retaining HNW clients by addressing these broader concerns,” said Yang.

Survey and client insights

In 2023, CTBC collaborated with Boston Consulting Group to conduct a detailed market survey of HNW clients, which provided critical insights into client preferences and behaviours. The survey focused on individuals with assets exceeding $100 million and revealed that 60% of HNW and 80% of UHNW clients prefer to work with domestic banks such as CTBC for their wealth management needs. This research not only affirmed the bank’s local strength but also guided its strategy for further enhancing its domestic services while expanding its international reach.

The survey also highlighted notable differences in asset allocation between HNW and UHNW clients. “HNW clients typically allocate around 27% of their assets to deposits and 14% to insurance. However, UHNW clients with over $1 billion in assets tend to diversify more into equities, real estate, and alternative investments, which make up approximately 40% of their portfolios,” explained Yang.

Offshore expansion and building a global private banking business

CTBC’s international private banking business, particularly in Singapore and Hong Kong, has become an integral part of the bank’s overall growth. The international private banking division saw an 18% increase in AUM in 2023, reflecting the bank’s ability to meet the needs of clients with substantial offshore assets.

Chen elaborated on CTBC’s unique "1+2+N+N" service model, which underpins its success in international markets. This model ensures that one private banking relationship manager (RM) acts as the client’s main point of contact, while collaborating with institutional banking RMs and international RMs based in Singapore and Hong Kong. The "N+N" refers to a network of internal specialists and external partners, including tax advisors, legal experts, and real estate professionals, who provide clients with comprehensive and bespoke solutions. Chen explained, “Our integrated service model allows us to provide UHNW clients with the full spectrum of wealth management services, tailored to both their personal and business needs, across borders”.

A key example of this model in action involved a Taiwanese client investing in Japanese real estate. Through collaboration with an external partner, CTBC assisted the client in structuring a US dollar insurance savings plan through a renowned insurance company, coupled with a Japanese yen mortgage loan provided by its subsidiary, Tokyo Star Bank. This strategy allowed the client to hedge against currency risks while securing stable returns from both the insurance plan and the real estate investment.

Digital innovation and transformation

Digital transformation has been a cornerstone of CTBC’s ability to deliver efficient and personalised services to its private banking clients. The bank’s use of the Portfolio Insight Engine and Wealth Chat has reshaped the way relationship managers interact with clients, enabling real-time communication and portfolio monitoring.

Yang highlighted the importance of Wealth Chat, a platform that allows clients to engage directly with their relationship managers in a secure environment. “Wealth Chat enables us to maintain seamless communication with our clients while ensuring that all interactions are compliant with security and regulatory standards. This platform also helps us prevent risks associated with informal communication channels,” said Yang.

Additionally, CTBC has embraced robotic process automation (RPA) to streamline administrative tasks, allowing relationship managers to focus on more strategic aspects of wealth management. “Our international clients, particularly those in Singapore and Hong Kong, expect efficiency and speed. RPA has enabled us to meet those expectations by automating routine processes, freeing up our managers to deliver more personalised service,” noted Chen.

Family wealth governance provides a unique value proposition

CTBC’s Family Wealth Governance programme has become a defining feature of the bank’s private banking offering, particularly after the launch of Family Wealth Governance 2.0 in 2024. This service helps clients manage their wealth comprehensively, focusing on wealth succession, governance, and sustainability across generations.

Yang noted that the demand for alternative investments has grown, particularly among second-generation clients, who are increasingly interested in niche markets such as art and jewellery. “The younger generation is more focused on asset growth and is looking beyond traditional investment strategies. Our Family Wealth Governance service allows us to offer customised portfolios that align with both financial objectives and personal values,” Yang explained.

A notable example of the bank’s expertise in family governance involved a Taiwanese business owner who worked with CTBC to establish a golden share structure within a holding company, ensuring that the family retained control of the business while also facilitating a smooth wealth transition to the next generation.

Balancing domestic and international growth

CTBC’s ability to balance its domestic and international private banking businesses has been pivotal to its success. The international private banking division was established in 2012. Since then, it has grown significantly, generating about $7 billion in AUM as of 2024, and has nearly reached the scale of the domestic business.

Chen emphasised that CTBC’s decision to establish Singapore as the hub for its international operations has been validated by recent geopolitical developments, which have made Singapore an increasingly attractive location for wealth management. “Our clients appreciate the stability offered by Singapore, and this has been a key factor in the growth of our international private banking business,” said Chen.

At the same time, CTBC continues to prioritise long-term relationships with its domestic clients. “Client loyalty is a cornerstone of our business. Many of our domestic clients have been with us for decades, and we work hard to maintain those relationships through personalised service and tailored solutions,” Yang noted.

Sustaining growth and innovation

CTBC believes its private banking success is grounded in its ability to innovate and provide integrated cross-border services that cater to the evolving needs of HNW and UHNW clients. Looking to the future, Yang remarked, “We are committed to expanding our family wealth services and continuing to invest in technology to remain the trusted partner for our clients.”

Chen added, “Our expansion in Singapore and Hong Kong positions us well to meet the growing needs of clients across Asia. We remain dedicated to offering bespoke, comprehensive wealth management solutions that adapt to the changing financial landscape”.

CTBC’s approach to balancing domestic client loyalty and growth with international expansion ensures that it will remain a leading player in the private banking sector, offering innovative and personalised services that meet the sophisticated needs of high-net-worth clients across the globe.