Global banks like Citibank and HSBC are moving away from retail banking to focus on wealth management due to lower costs and higher returns. However, Bangladeshi banks continue expanding retail branches instead of developing strong wealth management capabilities. To remain competitive, they must invest in training skilled advisers, adopt technology, and shift toward serving affluent clients through expert financial guidance.
Global Banks Pivot to Wealth Management: A Lesson for Bangladesh
When Citibank Chief Executive Officer (CEO) Jane Fraser decided to wind down the bank’s retail operations worldwide, her primary goal was to redirect focus toward wealth management. HSBC has followed a similar strategy, closing its retail banking units in Bangladesh and markets like Indonesia as part of this global shift.
Across the world, major banks have realised that retail banking is capital-intensive, costly, and yields relatively low returns. For example, JP Morgan restricts its retail banking operations to its home market, the United States. Even with technological advancements in digital banking, maintaining the infrastructure required for retail services remains an enormous expense. Consequently, many international banks are now concentrating on the top tier of their customer base — the affluent segment — to drive higher revenues through advisory fees, investment products, and cross-selling opportunities.
This trend raises a crucial question: why do banks in Bangladesh continue to place such heavy emphasis on retail banking, even expanding their network of physical branches? In today’s age of internet and mobile banking, most customers can conduct nearly all their transactions digitally, without ever visiting a branch. For banks, particularly those operating in urban centres, it would make far greater sense to shift their strategic focus toward wealth management.
During recent visits to several leading banks’ Priority Banking and Wealth Management centres in Bangladesh, I observed that most offered nearly identical packages — airport meet-and-greet services, complimentary lounge access, free health screenings, and certain fee waivers. While these benefits are appealing, they lack distinction. The true shortfall lies not in the perks, but in the limited depth of financial expertise among those managing wealth portfolios.
Wealth management should go far beyond privileges and lifestyle benefits. It should deliver real value through expert advice on global economic trends, investment strategies, and legacy planning. Achieving this demands seasoned professionals who understand financial markets, risk dynamics, and long-term wealth creation — not just product features. Unfortunately, many relationship managers in Bangladesh’s wealth banking segment are recent graduates with minimal experience.
Banks therefore need to invest in structured training programmes that develop these employees into genuine financial advisers. In more mature markets, such positions are usually held by senior bankers with deep experience, whose credibility and insight enrich client relationships.
New professionals are certainly welcome in the wealth management field, but they should first acquire a solid grounding in banking fundamentals — including regulatory frameworks, compliance obligations, and financial planning principles — before managing client portfolios.
Their responsibilities must evolve beyond routine tasks such as responding to client calls or issuing tax certificates. As artificial intelligence and automation increasingly handle administrative work, relationship managers should focus on what technology cannot replicate: understanding client goals, building lasting trust, and crafting customised financial solutions. The blend of human empathy and professional expertise is what separates exceptional wealth managers from uniform, transactional service providers.
It is time for Bangladeshi banks to rethink their approach. The future does not lie in expanding brick-and-mortar branches for basic retail services but in building robust wealth management capabilities to serve a growing population of affluent clients. By prioritising training, enhancing advisory skills, and fostering professionalism, banks can position themselves for sustainable growth — and play a pivotal role in strengthening the country’s financial sector.