Bank of Singapore’s EAM business: Standing tall against competition

• Main Authors: THAM, T. Mandy, KONG, Esther, KOH, Juliana
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Private Bank; custodian bank; External asset manager; Wealth Management in Singapore; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/400; https://cmp.smu.edu.sg/case/5186https://cmp.smu.edu.sg/case/5186
• Institution: Singapore Management University

Officially launched on January 29, 2010, Bank of Singapore had grown rapidly in reputation and assets under management (AUM) over a short span of 11 years to become one of the fastest growing private banks in Asia. As of June 30, 2021, its AUM stood at US$125 billion. With the growth of family offices in Singapore, the demand for external intermediaries, such as the external asset managers (EAMs), to manage the growing wealth on the island had risen. Singapore’s AUM by asset managers reached US$2.9 trillion in 2019 and it was estimated that EAMs accounted for 5% of the total AUM. Many private banks in Singapore had announced strategic plans to strengthen their presence in the EAM business. Bank of Singapore had to quickly compete with the foreign banks who had decades of experience managing the EAM businesses in Europe and United States. What strategies could the Bank implement to propel the bank’s EAM business amidst competition? This case examines the EAM business from the perspective of Bank of Singapore as a custodian bank, the value propositions of Bank of Singapore in differentiating herself to the EAMs, the challenges faced, and the road ahead. The case allows participants to explore the following – (1) Explore the attractiveness and challenges of the EAM businesses for Bank of Singapore (2) Analyze the value propositions of Bank of Singapore in differentiating herself from competitors to the EAMs (3) Examine the strategies of Bank of Singapore in building the EAM business.