Growth of Asian Market and The Foreign Banks -2

To be effective, it must decide which customer segments used in priority, identifying those with critical size enabling it to recoup its costs and commercial structure including compliance. Segmentation can be based on criteria level of wealth (affluent, HNWI, UHNW individuals), the nationality of the customer (onshore vs. offshore) of origin of the fortune (inherited vs. built).... To gain a foothold in the Asian market, European banks may for example choose to serve priority customers offshore, composed of customers 'Western' wishing to invest in Asian markets. Once established brand and the breakeven point is reached, they can explore the opportunity to develop their offer to the onshore market to take advantage of its growth potential. Along with this customer segmentation, banks must be able to provide services to both heritage and professionals to cover all customer needs.

 This is the strategy chosen by most of the Wealth Management companies and has implemented procedures for cooperation between its teams Corporate Investment Bank and Wealth Management Asia able to better serve its customers easy. The customer has one contact for all of his professional and private issues. Beyond the added value to its customers, this cooperation allows commercial expansion through effective cross-selling. A client passes to sell his company will benefit from the expertise of the investment bank while new cash from this sale will be managed by the private bank. This type of organization seems particularly suited to the Asian market. Finally there is the question of the mode of entry of banks in the Asian region. They must assess their strengths locally before deciding how to layout and the level of investment involved.

Have one or more business lines deployed in the region? If so, then the bank will definitely enjoy cross-selling, sharing clients or synergies information system for pooling certain fixed costs and limit the cost of customer acquisition. Otherwise, it may proceed by external acquisition targets but are now rare or even the possibility of a partnership with a local bank. Development potential of private banks in Asia is considerable. European players must be put in working order now to operate profitably. Failing recipe, everyone must identify its forces in the region to implement the business model that will allow it to serve more efficiently and at the best price a demanding clientele. The future global ranking of private banks certainly depends on their success or failure in the conquest of Asia.