Wealth Management Business in Kenya: A case Study of Standard Chartered Bank Kenya
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2019 is when StanChart really accelerated its Wealth Management business. At that time the bank was managing a portfolio of around Ksh 50 billion. StanChart would then enhance its digital capability for investing- the SC Mobile app. This was the first mobile bank in Kenya where customers could invest in treasury bills and bonds and offshore mutual funds.
Surprisingly when covid came, the business took off attributed to its digital channels that allowed it to serve its global customers seamlessly. In 2020, the bank almost doubled its AUM from the previous year!
Later in 2022, the bank teamed up with Sanlam Investments East Africa Ltd (Sanlam) and Mangosteen BCC Pte Ltd (Bambu) to launch SC Shilingi Funds. By the end of FY’2023, the assets under management (AUM) of SC Shilingi Funds had experienced a significant six-fold increase, reaching Ksh 5.2 billion compared to Ksh 856.3 million previously.
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Wealth management, especially among affluent clients, plays a crucial role in Kenya's financial sector. With rising affluence, individuals are increasingly seeking expert guidance to grow and protect their wealth. Standard Chartered Bank Kenya then stands out as a prime example in this field.
The significant progress in affluent banking is evident, with segment revenues up 29% year-on-year to Ksh 11.5 billion and a remarkable 25% growth in Wealth AUM to Ksh 185.5 billion by FY 2023. The bank's wealth division has emerged as a key contributor to its overall revenue stream. In Fact, the Affluent segment now contributes 58% of the overall Consumer, Private & Business Banking (CPBB) revenues.
It is also important to note that the wealth management business AUM overtook the retail deposits in FY2023 -which stood at Ksh167.5 Billion. Overall, Standard Chartered Bank Kenya's wealth management business serves as a compelling case study of how financial institutions can leverage expertise, global networks, and innovative products to cater to the evolving needs of affluent clients.