Winners rationale

While multinational banking giants have dabbled into Philippines’ burgeoning private banking space, it was BDO Private Bank whose dedicated private banking services to Filipino HNW/UHNWIs at home made it the undisputed domestic leader in 2020.

BDO Private Bank has established itself as the only onshore private bank offering services that are comparable to offshore private banks in the country. Thanks to the support of its universal parent bank — BDO Unibank — the private bank benefits from a client referral pipeline, while maintaining its “separately organised” focus on wealth management, targeting the emerging wealthy all the way to UHNWIs.

Despite 2020 posing unprecedented challenges for the private banking industry across Asia, BDO Private Bank was quick to make adaptations to digital channels and adjustments to its business models. The bank has facilitated online platforms for RM-client engagement and product briefing, which led to greater client interaction. It made remote working arrangements for the bank’s staff, achieving an “office anywhere” set-up through flexibly applying various digital platforms and tools. The bank is in the process of initiating a compliant digital documentation and signature function that will further facilitate client servicing during lockdowns.

As of the end of October 2020, the bank hit PHP 758 million in revenue, 35% of which came from the HNW business. In addition, combined AUM in bank and trust reached a record high of PHP 567 billion, a nearly 27% growth YoY. The compelling number reflected the bank’s dedication to its wealth management business in the face of a challenging macro environment and broadly grim market sentiments in the country.

With regards to its investment management offerings, diversification lies at the heart of what BDO Private Bank offers clients: the bank started to expand its broad offerings to offshore mutual funds and ETFs in 2019, and has provided the clients with access to physical gold to hedge against the risk and uncertainties in a volatile market. In 2020, around 42% of BDO Private Bank’s client assets were invested into bonds, 27% to equities, and another 26% to funds. The bank provides directional and discretionary portfolio mandates as part of its trust services.

The private bank kept up its wealth planning and structuring services by adding more skilled wealth and legal advisors, providing a broad range of services from trust to corporate services in philanthropy, and estate and succession planning. Within its team of relationship managers, the bank has been honing its Family Office capabilities through hiring talents and creating long-lasting relationships with families. Both client numbers and RM headcount showed moderate growth in a bumpy year.

To keep on par with its international peers, BDO Private Bank is placing a greater focus on incorporating sustainability in its business models. The bank aims to initiate decision making, assessing relationships and creating products based on sustainability principles, and its commitment is inspired by the United Nations Sustainable Development Goals.

BDO Private Bank is Asian Private Banker’s Best Private Bank — Philippines Domestic for 2020.