Private banking in Singapore : analysing the factors for success and potential challenges of the future

• Main Authors: Wang, Heqiao, Tan, Phyllis Si Qian, Toh, Keith Wei Kang
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Finance::Banking
• Online Access: http://hdl.handle.net/10356/51309
• Institution: Nanyang Technological University

In this study, we aim to identify the factors contributing to Singapore’s current success as an offshore banking centre for the world’s rich. On top of that, we seek to identify the issues that challenge the private banking sector in the current context of increasing fiscal responsibility requirements. Based on that, we will examine potential strategies that enable Singapore to maintain its competitiveness amidst the challenging conditions. A study of the overall financial ecosystem that exists within Singapore will reveal that the conditions today are very conducive towards attracting the funds of potential investors. With Singapore’s extremely stable political environment and overall low country risk, it forms the core foundation of conditions that will enable private banking services to flourish here. Combining that with strict and efficient central bank policies, strong economic growth, incentive based tax environments and the high returns with safe foundations that are existent, makes Singapore an extremely attractive location for private banking. Especially, among the various advantages that we hold against other key offshore banking centres such as Hong Kong and Switzerland. With Asia being the key growth driver, the future for private banking in Singapore is bright. That is if they are able to maintain the stability that exists within the ecosystem currently, which is shown to be more than possible, combined with the fact that sustainable incentives continue to be the name of the game among key decision makers. With all these considerations in mind, Singapore has received immense praise from private bankers of key institutions. Our paper corroborates these views but brings to awareness the issues that Singapore cannot afford to rest on their current efficiencies amidst an environment of rising costs and competition. We have provided recommendations that will conquer the challenges that lie ahead for Singapore to maintain its edge over key rivals.