As global wealth management continues to burgeon, Japan’s leading investment bank, Nomura Holdings, has set a strategic plan in motion. The bank aims to tap into the growing pool of wealthy families and entrepreneurs across Asia and the Middle East by hiring over 40 private bankers within the next two years, disclosed Ravi Raju, Nomura’s international wealth management head, in a recent interview with Reuters.
This planned recruitment is a significant part of Nomura’s broader objective of bolstering its wealth management, thereby increasing revenue that’s less susceptible to market volatility. The investment giant, in the past, has suffered major financial blows in its global expansion efforts, primarily due to market unpredictability.
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Raju outlined the upcoming growth strategy, stating, “The plan for us is to grow to about 135 relationship managers in the next two years, which will help us double our business.” At present, Nomura employs 91 private bankers across Singapore, Hong Kong, and Dubai. These professionals cater to high net-worth individuals in Greater China, Southeast Asia, and the Middle East.
Nomura has strategically repositioned its business within the wholesale division to provide affluent clients with a diverse range of investment products and services. This includes everything from equity to structured products – offerings similar to those available to institutional clients.
The Japanese bank has set ambitious targets, aiming to augment assets under its international wealth management business from $15 billion to $35 billion by March 2025. This goal follows a successful three-year business overhaul, which not only doubled the assets under management but also created 1,200 new client accounts.
The Asia Pacific and the Middle East combined house 37% of the world’s population of high net-worth individuals – those with investable assets of $1 million or more, according to Capgemini’s 2023 wealth report. This substantial market share forms a lucrative ground for Nomura’s growth ambitions.
Raju, a veteran private banker who joined Nomura in 2020, stated that despite being outside the top-20 ranks of private banks in Asia, Nomura has the edge of being “small and entrepreneurial,” allowing them to effectively scout for talent.
As Raju concluded, “Nomura’s strengths in Japan and Asia will allow the bank to offer the best value for any client who wants to look at Japan and Asia,” it’s clear that the bank is making strategic moves to ensure its robust presence in the global wealth management industry.
This news is based on a report from The Star.
