CfC Stanbic targets cheap deposits from millionaires

CfC Stanbic Bank has launched a special account for wealthy investors with a net worth of at least Sh85 million ($1 million), which it hopes will boost growth of its deposits.

The targeted private clients will get premier services, ranging from investment advisory, trust and fiduciary services, specialised lending, managing risk and transactional banking products as well as a dedicated relationship manager.

The account is seen as the bank’s quest for cheaper deposits, as funds from companies tend to be more highly priced than from individuals.

“Those who take up the offering will benefit from the bank’s linkage of international and domestic capabilities,” said a statement from CfC Stanbic Bank after the launch of the rich people’s service on Thursday.

The bank joins the growing number of institutions around the world which are introducing wealth management services for the high networth individuals in response to the rising numbers of millionaires in emerging and frontier markets.

Exclusivity

Making the case for how the growth of economies in the Africa region had contributed to individual wealth, Dr Mark Mobius, a Singapore-based emerging market investment expert who visited Kenya early this year to hunt for deals, was recently quoted saying the continent has at least 200 dollar billionaires.

According to Forbes magazine list of the rich, 40 of the top wealthiest people in Africa come from eight countries, including Kenya.

Besides Kenya, the bank has international links with offices and professionals in London, Jersey, Isle of Man, Mauritius, Nigeria, Argentina and South Africa – which handle the high net worth individuals’ investment through its Wealth Management Services division.

“Private Clients service is responding directly to the needs of the country’s wealthy, who are looking for a financial services partner to take care of their often complex wealth management needs,” CfC Stanbic Bank managing director Greg Brackenridge said in the statement.

The wealth management arm of the bank will be headed by Anjali Harkoo who has spent the last 12 years working for leading private banks based in London.

“Exceptional service, individual attention and absolute discretion are at the core of our value proposition to clients. Our aim is to bring exclusivity back to banking” said Ms Harkoo.