Bank of Singapore has launched a new service aimed at ultra-high-net-worth individuals seeking the benefits of a family office without the costs of running one, intensifying competition among private banks for Asia’s growing pool of family wealth.
The Family Office Catalyst allows clients to appoint the bank as manager of a vehicle with at least $20 million in assets under management, while qualifying for Singapore’s Section 13O and 13U tax exemptions.
The structure provides institutional-grade governance and access to the bank’s discretionary and advisory portfolio management teams, which have delivered annualized returns of 12.7% over the past five years in its Singapore equity strategy.
“Ultra-high-net-worth individuals continue to be keen to professionalize the management of their wealth, and many are exploring alternative options to single-family offices,” said Lim Leong Guan, the bank’s global head of financial intermediaries, family office and wealth advisory.
He cited the high costs of operating dedicated offices and the challenge of attracting investment talent as reasons families are considering outsourced solutions.
The platform is overseen by the bank’s Chief Investment Office Global Advisory Council, which includes senior executives from BlackRock, Blackstone and KKR, giving clients access to wider research and deal flow.
The bank also highlighted the strong performance of its ESG mandate, which has returned more than 20% annually since its launch in 2023.
Singapore and Hong Kong remain Asia’s main hubs for family offices, hosting about 1,400 and 2,700 respectively, according to Campden Wealth.
The industry manages an estimated $50 billion in the region, with nearly half of assets allocated to private markets.
Competition is intensifying as rivals such as DBS and HSBC introduce similar turnkey structures. Stricter local staffing and spending rules for Singapore’s family office tax exemptions have also encouraged some wealthy families to turn to packaged solutions provided by banks.
The Bank of Singapore’s move underscores how private banks are repositioning to capture demand from Asia’s new rich, who want the prestige and efficiency of family offices without committing to heavy overheads.
With talent shortages and higher regulatory thresholds making stand-alone offices harder to sustain, outsourcing to banks offers a pragmatic middle ground.
However, the trade-off is reduced control. Families prioritizing privacy or bespoke deal-sourcing may still favor the traditional single-family office model. The rise of hybrid approaches, combining in-house governance with outsourced investment management, suggests the market is segmenting.
For banks, the challenge will be differentiation in an increasingly crowded field, where performance track record, access to private deals, and ESG alignment may determine which platforms win.