One of the largest banks in Southeast Asia in terms of assets with 90 years of history behind it, OCBC Bank (Malaysia) Bhd is extending to its Premier Banking clients several private banking capabilities that were previously never available to the segment, through the introduction of the OCBC Wealth Account.

The new capabilities are the result of the OCBC Group Wealth Platform initiative, which is poised to raise the group’s regional wealth management standing and reach across geographies, now deployed at Bank of Singapore, Oversea-Chinese Banking Corporation (OCBC) and OCBC Malaysia.  

In its continuous pursuit to be the best wealth management bank among foreign banks in Malaysia, the new platform is considered key to OCBC Bank’s next phase of growth in wealth management to better serve the wealth needs of its clients, not just from its Premier Private Client segment, but also from the Premier Banking segment.

Managing an active investment portfolio can be challenging. OCBC Bank has enhanced its wealth management platform so that clients now have a holistic view of their wealth portfolio to help them manage and review their cash flows and returns better.

According to OCBC Bank (Malaysia) Managing Director and Head of Consumer Financial Services Anne Leh, this is made possible through the OCBC Wealth Account, which consists of one or more wealth portfolios that hold investment products such as cash-funded unit trusts, bonds, structured investments, dual currency investments and wealth financing loans. It also holds a multi-currency account as a settlement account for the investment holdings. 

“This approach enables us to provide a more meaningful portfolio performance computation to help clients easily track the performance of their investments,” she says.

The asset classification framework in the OCBC Wealth Account is also based on the underlying holdings of the instrument to provide investors with a clearer view of their portfolio’s asset allocation and aid them in their portfolio management strategy. For example, a unit trust with primary underlying holdings in the equity market or an equity-linked structured investment is classified under the asset class of equities. A unit trust with primary underlying holdings in government or corporate bonds is classified under the asset class of fixed income. OCBC Wealth Account holders can expect to see the returns of their investments annualised so that they can make easy comparisons against, say, market fixed deposit rates to assess whether their investments have generated the desired returns.

“The introduction of the OCBC Wealth Account sets OCBC Premier Banking apart from the rest of the country. Its proposition has been built around a fundamental and integral transformation that would serve as the nexus of its approach to deliver a remarkable client experience, especially to meet the needs of increasingly sophisticated investing clients who wish to be involved in, and informed of, the performance of their investment portfolios,” says Leh.

OCBC Wealth Account also offers a sophisticated platform where the assets residing within it can now be automatically pooled to enhance an investor’s wealth borrowing power, and the line can be drawn in multiple currencies. OCBC Premier Banking clients can now take full advantage of market opportunities by optimising their investment power with wealth financing solutions. 

“Clients now need only to pledge their portfolio with the bank for extra funding, with no additional cash outlay required. The collateral value within the wealth portfolio will be automatically pooled so that clients can use the pool to reinvest in a comprehensive suite of wealth products or diversify by tapping into key investment opportunities,” says Leh.

OCBC Premier Banking clients will be provided with a consolidated monthly report of their entire portfolio with the bank. This ensures nothing is left out and clients will be able to easily identify untapped potential when it comes to wealth generation. Day-to-day banking holdings and transactions are now segregated from investment holdings and returns, with investment holdings presented based on its net asset value. Assets and liabilities are also laid out in detail, line by line, in a simple and easily understood manner. The breakdown in assets and liabilities allows OCBC Premier Banking clients to quickly capture their net worth and personal financial situation and aid them in making their next financial decision.

Here, decisions can be made more speedily, aided by the bank’s secure and remote banking tools that are, in turn, enabled by its multichannel strategy. Clients with access to OCBC online banking will be able to see an overview of their overall portfolio performance, which is then broken down into various asset classes in a clear pie chart.

With ESG being a key theme for OCBC Bank, sustainability efforts have been ramped up. A testament to this are its 79 funds and 129 bonds with a sustainability focus. Diving deeper, 72% of OCBC Bank’s unit trust assets under management (AUM) and 51% of its retail bonds AUM are currently sustainability-linked investments. This year, the bank is looking to grow the number of recommended unit trusts and retail bonds on its product shelves to 60% and 70% respectively, with the ultimate aim of reaching 90% by 2025.

OCBC Premier Banking recognises that one size doesn’t fit all because every client has his or her own unique wealth portfolio and preferred investment style as well as unique aspirations and risk appetite. By gaining a better understanding of their needs, OCBC Premier Banking relationship managers can customise their portfolio with relevant products and conduct regular reviews to help clients make the most of their life goals. From planning for their children’s education or their retirement to preserving or transferring wealth, clients can secure their financial goals in life through the structured approach of OCBC Life Goals. They can expect to grow and manage their wealth with the diverse range of wealth solutions, from deposits and credit cards to wealth protection, investments and financing.

Being a significant player in the wealth management segment, OCBC Premier Banking will continue to improve and provide best-in-class products and services to its clients, with the steadfast objective of placing them in a position of advantage in three aspects — their wealth needs, convenience and experience.

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