With the growing affluence among Filipinos, the Ayala-led Bank of the Philippine Islands' (BPI) wealth management arm, BPI Wealth, has made a deliberate move to capture a larger pie in the very-high-net-worth individuals (VHNWI) and ultra-high-net-worth individuals (UHNWI) customer segment.
“We have big ambitions,” declared Maria Theresa D. Marcial, president and CEO of BPI Wealth, during a media roundtable for the unveiling of its BPI Private Wealth Signature Experience, a suite of tailored solutions and services to elevate customer experience beyond banking.
By big ambitions, Marcial means that BPI Wealth targets to more than double its P1.22 trillion asset under management (AUM) as of end-2023 to P3 trillion in three years time.
“We want to bring that to P3 trillion by 2026. So big, big ambitions. And it really takes a major transformation for us to be able to get to these,” she said. The whole BPI group has total AUM of about P1.5 trillion.
According to global data and intelligence platform Statista, the Philippines has emerged as a hub for the ultra-rich seeking robust wealth management solutions with the population of UHNWI estimated to increase from 313 individuals in 2021 to 441 by 2026, and HNWI projected to escalate from 18,000 in 2021 to 32,000 by 2026.
The global definition of HNWI is at least a million dollars to less than $5 million. The next tier or the middle tier has a net worth of between $5 million to $30 while the very high or the UHNWI is above $30 million.
Profile
Despite criticisms that the domestic economy is run by few oligopolies, Marcial said that the profile of the UHNWI and VHNWI now varies. It’s not just the old rich.
This customer segment covers a wide range from young entrepreneurs, old entrepreneurs, businessmen, and professionals. “Budding professionals are starting to accumulate wealth,” she said.“There are also the next generation children and grandchildren of high net worth individuals. It's a whole range, actually,” Marcial said.
What is certain though, Marcial emphasized, is that the growing affluence is not just coming from the old rich.
“We are seeing more and more people reaching that hurdle in terms of total wealth, and that's because of the growing economy and growth in the middle. So I think that's the trend that we will see going forward, there'll be a more diverse set beyond the old rich,” she added.
Targets
BPI Wealth has an estimated 25 percent market share of the HNWI and UHNWI customer segment. Marcial would like to corner at the very least one-fourth to one-third of its addressable market.
On the affluent side, BPI Wealth has about 100,000 to 250,000 customers and it is looking at doubling that in the next two to three years.
On the retail side, the BPI group has 11 million customers of which the BPI Wealth only serves around 600,000 to 700,000. Marcial said they would be more aggressive to double that market because of its huge potential.
Even with the ambitious targets and given its already sizable market share for the HNWI and UHNWI segment, Marcial said it would be very difficult to double its current share in this customer segment. Just a five percentage point increase in market share is very tough, she added.
At present, there is no hard data to adequately measure market share of a particular customer segment. BPI Wealth relies on surveys in terms of size of the market, plus their current AUM as basis.
“We want to continue to gain market share. And we believe that with this Private Wealth Signature Experience, we will have the right solutions and products to offer to this segment,” said Marcial.
Signature Experience
As a comprehensive suite, the BPI Private Wealth Signature Experience encompasses exclusive banking solutions, first-in-market investment products, bespoke wealth planning services, and curated lifestyle privileges, all anchored on four fundamental pillars: banking investing, planning, and living.
Backed by BPI’s ecosystem of seasoned relationship managers and investment professionals, BPI Private Wealth is committed to delivering pioneering solutions tailored to the unique needs of its private wealth clients.
“Our clients can leverage on our investment expertise and resources, including access to onshore and offshore solutions, to maximize their returns and enjoy the convenience of investing through our Discretionary Model Portfolios. We manage their portfolio while they set the rules, freeing up their precious time so that they can spend it on what matters more to them like pursuing their passions,” shared Marcial.
To complement these efforts, BPI Wealth also launched the Wealth Elite Academy, a comprehensive internship program exclusively offered to NextGen private wealth clients.
The Next Gen Wealth Elite Academy was created with a vision to provide an unparalleled learning experience for the next generation of business leaders to prepare and enable them to take over their family’s financial legacy.
Throughout the program, participants were immersed in an enriching and dynamic environment, fostering their growth, leadership skills, and financial acumen. The curriculum was carefully crafted to cover a wide spectrum of subjects including financial management, banking, trading, investing, and bank operations, among others.
In 2023, BPI Wealth unveiled its groundbreaking Multi-Family Office solution, a cornerstone of the BPI Private Wealth Signature Experience. This innovative offering grants clients access to a team of expert wealth planners proficient in navigating various aspects of family governance, including investment management, legal advisory, and comprehensive planning.
With a focus on trust, transparency, and personalized solutions, the Multi-Family Office team helps clients address their estate planning, business succession, legal, and property management needs.
“Our value proposition is we want to be the Filipino relationship manager who knows them, who can empathize with them,” said Marcial.
At the end of the day, Marcial said they want the UHNWI and HNWI to choose BPI as their domestic bank of choice.