CIMB aims to double emerging, affluent segment AUM by 2025

PETALING JAYA: CIMB Bank Bhd and CIMB Islamic Bank Bhd have strengthened its offerings for emerging and affluent clients across the Asean region and aims to double the assets under management (AUM) under the segment by 2025.

As a regional bank, it is well-positioned to provide regional recognition and privileges to preferred clients, ensuring seamless accessibility and priority treatment and access to CIMB Preferred Preferential Rates, as well as personalised portfolios.

Currently, the Asean wealth market generates an annual revenue of around RM40 billion and it is expected to grow rapidly between 2020-2025, with a projected compounded annual growth rate (CAGR) of over 13%.

In line with the strong growth in this market, CIMB Group aims to double the AUM under its “preferred” segment by 2025.

Its group consumer banking CEO, Samir Gupta, commented that as new categories of affluent individuals and families emerge with different needs and expectations, it has reassessed the traditional wealth band approach to client segmentation and realigned CIMB Preferred to better serve today’s Asean clients.

“We aim to become the bank of choice for emerging and affluent clients in the region by providing personalised, trustworthy advice and a differentiated experience, backed by our strong Asean franchise. Our proposition will support the growth of CIMB’s overall affluent business aspirations, which we have identified as a key focus area under our Forward23+ Strategic Plan,” he said in a statement today.

Gupta outlined that the bank’s proposition reflects the bank’s aim to double down and grow its affluent business, which includes both preferred and private banking clients. He said this will also entail investing in technology to enhance digital capabilities and adding more relationship managers to improve the client experience.

“On top of that, CIMB Preferred is also backed by experienced wealth planning experts to provide custom advisory and insights focused on the preservation of wealth as well as making informed decisions with confidence.”

Meanwhile, the CEO said the group continued to expand its Islamic wealth offerings to better capture the growing demand for the incorporation of Shariah principles into the financial planning process.

CIMB’s Islamic wealth management solutions offer a range of syariah-compliant products and services, such as deposit products, financing products, investment products, bancatakaful, zakat and waqf payments.

While the majority of the bank’s preferred business is based in Malaysia, it also seeks to grow its client base in Singapore as a hub market for both onshore and offshore banking clients. It highlighted that clients will benefit from seamless access to other markets with diversified cross-border financing solutions to manage and to grow their wealth and better address their needs and goals.

“These include for example the access of preferred clients to have low-cost financing in CIMB Singapore by using collateral from their home country. They could also opt for a convenient Pre-Arrival Account Opening service across Asean,” said Gupta.