Best for next-gen/millennials in the Philippines 2023
Few banks in Asia have pivoted as sharply toward attracting millennial clients – and the next-generation demographic – as the wealth arm of Rizal Commercial Banking Corp.
Given the Philippines’ large and growing young population, this focus makes sense. The Philippines has long been an economy driven by generational wealth, adding credence to the strategy.
In the Philippines, however, institutions really need to work for the loyalty of the nation’s youth. Here, RCBC Wealth is a standout, earning Asiamoney’s award for best bank for next-gen and millennials in 2023.
At the business level, RCBC Wealth – led by Jane Manago, group head of wealth management – had a solid 2022. Year on year, assets under management grew by 20%. The bank increased the number of families it services by 416, more than double the number brought on board in 2021. The bank exceeded its client number target for 2022 by 138%.
RCBC Wealth’s total revenues soared 26%, the commissions and spreads business grew 91%, and trust fees rose 35%.
One ace up its bankers’ sleeves: the broader RCBC group is one of the most digital-savvy banks in the country. This means it is already highly conversant in the ways and the mediums through which the under-40 crowd transacts. RCBC Wealth has also been strategic about its physical presence. It runs five centres for the next-gen and the emerging wealthy in Makati, Binondo, Greenhills, Cebu and Davao.
This focus and the conversations around the welfare of children and the next-gen really come from RCBC Wealth’s equally strong emphasis on its older legacy clients. Whether they are business owners, executives or professionals, a common worry is that children and grandchildren might not be able to maintain the lifestyle they experienced. In some cases, parents and grandparents worry that the next generation might be poorly prepared to protect and carry on the family’s financial legacy.
RCBC Wealth’s approach is a mix of empathy and tough love. Its Partners Through Generations initiative aims to spark conversations both within families about the ways goals, inspirations and risk tolerance diverge within families, and with members of the younger generation, who are keen on using their wealth for the betterment of their communities.
The first step in this journey is arming children with the knowledge, skills and investment capabilities to carry the torch when the time comes.
Since 2020, RCBC Wealth has conducted a wide range of virtual sessions to introduce the next generation to the world of investing. These are two-way e-learning exchanges, allowing for debate among clients, their children and subject matter experts.
Then, RCBC goes deeper with sessions on estate planning, the range of succession planning options such as trust products and services, insurance, tax concerns and family holding companies. That’s followed by customized one-on-one sessions to stimulate greater participation by next-gen clients.