With a keen eye on the intersection of finance and technology, Nikolai Braiden has become a leading voice on how innovation is reshaping the core of our banking systems. As an early blockchain adopter and advisor to numerous FinTech startups, he brings a unique perspective on the industry’s pivot toward new growth engines. Today, we delve into the aggressive push by both domestic and foreign banks into wealth management, a sector rapidly evolving to meet the demands of a growing affluent and aging population. We’ll explore the concrete strategies banks are deploying to capture this lucrative market, from building specialized divisions and targeting the senior demographic to the unique advantages international players bring to the table. This conversation will unpack how institutions are moving beyond traditional interest income to build lasting, high-value client relationships.
Given the pressure on interest income and the fast growth of individuals with over 1 billion won in assets, what are the first concrete steps a bank takes to build a successful wealth management division, and how do you measure its initial performance against established competitors?
The first move is always to establish a dedicated, high-touch physical presence. You can’t just rebrand a few branches. Look at Hana Bank’s “Club1” hub; it’s a clear signal of commitment. The next step is to staff it with a formidable team. Hana assembled 827 specialists, the largest in the sector, because clients need to feel they are getting premier, expert advice. You also have to go beyond simple investment products and offer a comprehensive suite of services—estate planning, tax consulting, and wealth succession. Measuring success initially isn’t just about assets under management. It’s about client acquisition in that target demographic of over 476,000 individuals and, more importantly, market share in high-growth areas like pensions, where Hana saw its assets grow to 2.4 trillion won.
Hana Bank launched “Hana The Next” for the senior market, which is estimated at 154 trillion won. Can you walk me through how its 827 specialists deliver comprehensive solutions like estate management, and what a typical onboarding process looks like for a new affluent senior client?
It’s a process built on deep trust and understanding. When a new affluent senior client walks into a specialized lounge, the initial conversation isn’t about products; it’s about their life, their family, and their legacy. The specialist’s job is to listen intently to concerns about passing wealth to the next generation or navigating complex inheritance taxes. From there, a team is assembled. It might include a tax consultant, an estate lawyer, and a private banker who work together to create a holistic plan. This isn’t a one-time transaction. It’s the beginning of a long-term partnership, designed to give that client peace of mind. The goal is to become an indispensable financial partner, which is how you effectively tap into that enormous 154 trillion won market.
NH NongHyup’s “All Wonderful” brand focuses on bridging urban and rural communities and supporting multiple generations. Could you share an anecdote or specific example of a service that connects these different groups, and how do you tailor retirement planning for such distinct lifestyles?
I recall a case involving a family with a successful farm—a significant rural asset—and children who had built careers in Seoul. The parents were nearing retirement and wanted to ensure the business continued, but their children had different lives. NH NongHyup’s team stepped in not just with financial modeling, but with a facilitated succession plan. They helped the family navigate the transition, setting up a trust that preserved the rural business while providing financial benefits to the urban-based children. Retirement planning here is completely different. For the parents, it involved strategies around agricultural assets and reemployment resources to stay active in their community. For the children, it was about integrating this new inheritance into their existing urban-centric portfolios. It’s a beautiful example of bridging a real generational and geographical divide.
Standard Chartered recently opened its first large-scale private banking center in Korea. What unique global investment and foreign exchange strategies can a foreign bank offer that domestic players might not, and how are these adapted to attract clients in a competitive market like Seoul?
The primary advantage is a truly global perspective. A domestic bank might offer access to international markets, but a global institution like Standard Chartered lives and breathes them. They can provide clients with seamless access to a wider array of foreign investment vehicles, private equity opportunities, and sophisticated foreign exchange hedging strategies that are critical for individuals with international business dealings or assets abroad. To compete in a sophisticated market like Seoul, they can’t just offer a generic global product. They localize it. By opening a flagship center in a prime location like Apgujeong and staffing it with experts in investment, forex, and insurance, they are signaling that they offer a bespoke, world-class service tailored specifically to the needs and aspirations of affluent Koreans.
What is your forecast for the wealth management sector over the next five years, especially regarding the battle for affluent senior clients and the evolution of digital advisory platforms?
The competition for affluent seniors will become hyper-personalized. We will move beyond specialized lounges to highly individualized services that integrate finance with healthcare, lifestyle, and legacy planning. The real evolution, however, will be in the synergy between human and digital advice. Digital platforms will handle the day-to-day portfolio management, performance tracking, and basic advisory needs, providing clients with 24/7 transparency and control. This will free up human advisors, like Hana’s 827 specialists, to focus on the complex, high-emotion decisions—succession planning, family business transitions, and philanthropic goals. The winners won’t be those who choose one over the other, but those who seamlessly integrate the efficiency of digital with the irreplaceable value of human wisdom and empathy.