Absa Bank Kenya has introduced offshore investment services to tap into the growing size of high-net-worth individuals (HNWIs) in the country.
The bank noted that its newly unveiled service will help wealthy individuals diversify their investment portfolio outside the local market.
The service will be managed by the bank’s subsidiary Absa Asset Management Limited (AAML).
Commenting on the move, Absa Bank’s interim managing director Yusuf Omari said: “As a fully-fledged financial services group, we are leveraging our global footprint, market intelligence, and expertise to set up a well-structured offshore investment infrastructure that not only meets regulatory standards across different markets but also resonates with the needs of clients looking to invest their capital with minimal risk and assured returns.”
The launch of the new service is subject to receipt of approval from the country’s Capital Markets Authority (CMA).
The number of high-net-worth individuals (HNWIs) in the country is predicted to surge by nearly 27% over the next five years, according to data from Knight Frank Kenya, creating a substantial opportunity for financial institutions to offer private wealth management solutions.
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Absa head of premium banking services Simon Gachahi said: “We see numerous opportunities for growing this business unit in Kenya given the strategic interventions made to build Nairobi as the financial centre of choice in the continent.” Following the launch of the new wealth management services, Absa Bank Kenya will compete with major intrenational banking groups such as Standard Chartered Bank Kenya, Citibank and I&M Group.