Affin Bank Bhd president and group chief executive officer Datuk Wan Razly Abdullah (third from left) and Affin Bank Bhd chairman Datuk Agil Natt (second from right) holding the Affin Diventium replica card.
KUALA LUMPUR: Demand and enquiries from high-net-worth individuals (HNWIs) for financing luxury items like yachts and overseas properties are key factors in Affin Bank Bhd’s decision to launch its new tailored financial service, Affin Diventium.
According to president and group chief executive officer (GCEO) Datuk Wan Razly Abdullah, most of the enquiries came in the form of investments amid a market that is constantly evolving.
“We had enquiries from businessmen and high-net-worth-individuals on how to invest, how to adapt in this global environment and what business opportunities they can look at.
“In realising this, the proposition that we’re putting out there is, we can help you realise your dream and create a lasting legacy of wealth for you,” he told reporters after the launch of Affin Diventium Private Banking here yesterday.
Affin Diventium is set to cater for individuals with investable assets of RM2mil or more. The bank is targeting 250 customers in its first year.
“In terms of RM2mil as the minimum assets under management, it could be like a mortgage, a certain amount for a car but it’s going to add up to more than RM2mil.”
Wan Razly said the newly launched bespoke wealth management solution and financial advisory product will be available to both Malaysians and foreigners.
“I think people have been surprised and interested at the same time in our capabilities. We saw this service as a natural progression from Affin Invikta and we hope Diventium will give us the same or more success in the segment,” he said.
Wan Razly said the difference in its already-customised banking experience to Affin Diventium is the level of highly personalised services provided.
He said the bank’s private wealth management team will be able to create tailored solutions, which may include investments or financing, but everything will be more personalised.
“We will come to you as a client, whether it is at the office or at home.
“Whether it’s luxury car financing, it could be properties in London, it could be even potentially buying a yacht or an expensive watch. We can support and source it for you,” he said.
Affin Bank’s network of agents and lawyers, based in Malaysia as well as London and Manchester, will leverage their expertise to fulfill clients’ needs and wishes.
“We are also in touch directly with ship makers. Many people buy yachts but there is no financing from banks locally for such items. We are the first to come up with this,” he said.
On the bank’s latest earnings results, Wan Razly noted that while the performance was relatively flat, the key point was that earnings had grown.
“Quarter-on-quarter we are growing at almost 8%. It’s a tough environment out there, I think the economy is quite soft.
“The government has announced good gross domestic product (GDP) numbers but we still see softness within the small and medium enterprise (SME) segment.”
He said the strong GDP will hopefully provide encouragement to the SMEs as it has been a tough year globally with interest rates remaining elevated.
To mitigate this, the banking group has adapted its strategies and aims to perform better than last year.
He also noted that anticipated US Federal Reserve rate cuts are expected to ease the pressure on the bank’s net interest income compression.
“When I looked at the data, a lot of economies are forecasting a rate cut in September, by at least 25 basis points.
“That would alleviate some pressure on the cost of deposits. We are hopeful and looking forward to it.”
Regardless of the Fed rate cut, Wan Razly said Affin Bank has its own plan to reduce the cost of deposits.
This includes acquiring more current and savings accounts, and exploring alternative funding sources that are cheaper than high-cost fixed deposits.
