Stanbic Bank Ghana is now targeting to reach individuals in Ghana and the diaspora worth at least a million dollars with tailored financial solutions that seek to grow their assets.

The bank intends advancing this goal through its newly-established Wealth and Investment unit - the third arm of its operations in addition to the Personal Banking Unit and Corporate or Business Banking Unit. 

This makes Stanbic Bank Ghana the latest in the Standard Bank Group to go this way after similar moves by subsidiaries in South Africa and Nigeria among others.

The target group also referred to as High Net Worth Individuals (HNWIs) involve clients with assets the worth one million dollars and above. 

According to the 2016 Knight Frank Wealth  Report, launched in Africa in partnership with Standard Bank Wealth and Investment, Ghana has experienced the fastest HNW growth rates in Africa over the past 14 years and will continue to grow as the Ultra High Net Worth increases by 85% over the next ten years.

The statistics show that in the year 2000, only about 500 individuals were worth $1million and above in Ghana. As at 2015, this had increased by over 5 times to about 2,700 - representing the highest growth in Sub-Saharan Africa by far.

Speaking with Joy Business Editor, Emmanuel Agyei, the Head of the Wealth and Investment Division at Stanbic Bank, Benjamin Mensah explained such a positive development has largely informed their latest decision to set up the Wealth and Investment Unit to cater for the wealth needs such clients. 

According to him, their value proposition essentially goes beyond banking solutions.

“Not a lot of banks in Ghana have set up such units that look at this segment of market and I think we are taking a leap where we are looking at the long-term view of the clients, preserving the client’s wealth over time, helping them build more wealth, helping them live a lifestyle that befits their status and helping the clients live a legacy to their kids or next of kin and to society. That is our wealth philosophy” he said.

Speaking at the launch, Alhassan Andani, Managing Director of Stanbic Bank Ghana, noted such specialized and personalized financial services are crucial for the growth of Ghana’s economy.

“Ghana is set to benefit from growing economic opportunities fueled by stable leadership, strong governance and economic opportunities from an increasingly diversified economy led by investments in infrastructure and real estate among others. Stanbic’s new Wealth and Investment proposition would, therefore, enable the country to get the most out of these opportunities” he said.

The Group CEO of Standard Bank, Sim Tshabalala also affirmed his outfit’s confidence in Ghana citing recent statistics and current economic forecasts.

“Ghana is an excellent place to launch a Wealth and Investment business not just because it’s booming now, but also because of its long and proud tradition of entrepreneurship and business innovation, even under very difficult circumstances. 

“This heritage of innovation, determination and resilience is a major part of the reason why Ghana’s economy is now among the very few in the world that have continued to grow rapidly despite persistently difficult global conditions” he noted.

Meanwhile, Stanbic already has a well-performing Investment Banking arm, Stanlib. Mr. Mensah said the two strategically complement each other to the benefit of the economy at large.

“So if the clients come and we have a conversation around asset management, that conversation is taking to Stanlib. So we are not in competition. If that client wants to look at diversifying their portfolio, looking at options offshore or abroad, then we again have another boutique asset management house called Melville Douglas - wholly owned by the bank. So we try to present a one-stop shop to the client” he explained.

“So if you are able to help this segment, they continue to build more wealth, obviously that’s adding to the economy. As they expand their businesses, they can employ more people and so on so the multiplier effect is manifested in the economy. Again, if you now look at the legacy side as we help them put the right structures to support society and the economy again stands to gain just as with the inter-generational transfer of wealth.

Stanbic Bank is by this move hoping to consolidate its position in Ghana’s banking industry having developed a strong association with Ghana’s business leaders, largely through its Personal and Business Banking franchise.