DBS Group has set an ambitious target to grow assets under management (AUM) in its wealth business to more than S$1 trillion (US$774 billion) by 2030, betting that Asia’s expanding affluent population and accelerating cross-border wealth flows will continue to position Singapore as one of the world’s premier private banking hubs.

The target represents a roughly S$400 billion increase from the S$632 billion in wealth AUM the bank managed at the end of 2025, effectively requiring DBS to replicate the asset growth it achieved over the previous decade in just five years.

The accelerated growth strategy underscores intensifying competition among Asian and global banks to capture the region’s rapidly expanding wealth pool, as geopolitical uncertainty, changing investment patterns and the creation of new fortunes through technology and entrepreneurship reshape private banking across Asia.

“From full year 2015 to 2025, in 10 years, we grew our AUM by S$400 billion,” Shee Tse Koon, DBS’ Group Executive and Group Head of Consumer Banking and Wealth Management, said during a media briefing.

“Looking at the traction, our ambition now is to grow the same S$400 billion by half the time.”

He attributed the optimism to powerful structural trends.

“Many of the macro trends that we see, for example the rise of wealth in Asia, and also the shift of wealth into Asia, I think these macro trends are what will be tailwinds,” Shee said.

Riding Asia’s Wealth Creation Boom

DBS’ strategy is built on one of the fastest-growing wealth markets globally.

Asia continues to produce new millionaires at one of the quickest rates worldwide, driven by technology companies, manufacturing, financial services, and family-owned businesses. At the same time, wealthy individuals are increasingly seeking geographic diversification for their assets, creating opportunities for regional financial centers.

Singapore has emerged as one of the biggest beneficiaries of that trend.

The city-state has attracted substantial inflows from entrepreneurs, family offices and high-net-worth individuals seeking political stability, a predictable regulatory framework, competitive tax policies and sophisticated financial services. Rising geopolitical tensions, including U.S.-China strategic rivalry, have further reinforced Singapore’s status as a preferred destination for wealth preservation and management.

The influx has supported robust growth across Singapore’s banking sector, particularly for its three largest lenders, DBS, OCBC, and UOB, whose wealth management businesses have become increasingly important earnings drivers alongside traditional lending operations.

One of the strongest indicators of Singapore’s growing appeal is the rapid expansion of family offices. DBS said it now banks more than one-third of all single-family offices established in Singapore, giving it a dominant position in one of the fastest-growing client segments in private banking.

The bank also reported that, as of May, the number of newly onboarded high-net-worth and ultra-high-net-worth clients had increased 20% compared with a year earlier.

Family offices typically generate higher-value relationships than conventional private banking clients because they often require investment advisory services, estate planning, philanthropy management, lending, corporate banking, foreign exchange, trust structures, and succession planning.

As more wealthy Asian families establish formal investment offices, banks with integrated capabilities across these services stand to benefit from deeper and longer-term client relationships.

To support its growth ambitions, DBS plans to hire more than 600 additional employees by the end of 2028, including relationship managers, frontline advisers, platform engineers and technology specialists. The recruitment will focus on the bank’s major Asian markets, including Singapore, Hong Kong, mainland China, India, Indonesia, and Taiwan.

There is a growing shift in wealth management that has seen digital capabilities become as important as traditional client advisory services.

“It’s not just about the frontliners,” Shee said.

“We need the engineers, the tech people, the platform people to create that capability and the capacity.”

Digital platforms, artificial intelligence, data analytics and automated portfolio management are increasingly becoming competitive differentiators as wealthy clients expect seamless digital experiences alongside personalized financial advice.

Largest Physical Expansion of Wealth Franchise

The hiring drive complements DBS’ largest-ever investment in its physical wealth management network. Last month, the bank announced plans to open 18 new wealth centers across Asia by the end of 2027 while upgrading another 36 existing centers over the following 18 months.

The expansion signals that, despite rapid digitalization, face-to-face advisory services remain central to serving affluent and ultra-high-net-worth clients, particularly for complex investment strategies, succession planning and cross-border wealth structuring. The new centers are expected to strengthen DBS’ presence in key Asian wealth markets while supporting higher client acquisition and deeper engagement with existing customers.

The announcement underpins the growing importance of fee-based businesses for banks facing a more challenging lending environment. Unlike traditional banking, wealth management generates recurring income through advisory fees, portfolio management charges and investment products rather than relying primarily on interest income. That makes earnings less sensitive to fluctuations in interest rates and credit demand.

For DBS, expanding wealth management also aligns with broader demographic and economic trends. Asia is expected to account for an increasing share of global wealth creation over the coming decade, supported by rising incomes, expanding capital markets and rapid growth in entrepreneurial businesses. At the same time, an intergenerational transfer of wealth across the region is expected to create significant demand for financial planning, trust services, and investment management.

DBS is positioning itself to capture those long-term opportunities by building a “wealth continuum” that serves customers across every stage of their financial journey, from affluent retail banking clients to ultra-high-net-worth families.

“Our wealth continuum is about really winning in every segment,” Shee said.

“It’s about serving them most appropriately in that segment, because, as I said, customers are not homogeneous.”

DBS’ ambitious target comes amid intensifying competition for Asian wealth. Global financial institutions, including UBS, HSBC, JPMorgan, Citi, and Bank of America, have expanded their private banking operations across Asia, while regional lenders are investing heavily in digital wealth platforms and advisory capabilities.

Singapore remains one of the focal points of that competition because of its growing concentration of family offices, stable regulatory environment and role as a gateway for Southeast Asian and Greater China wealth.

If DBS achieves its S$1 trillion AUM target by 2030, it would further cement its position as Southeast Asia’s largest wealth manager and augment Singapore’s status as one of the world’s leading international wealth management centers.

China’s rapid shift toward electric taxis and ride-hailing vehicles is emerging as an unexpected economic buffer against global oil market disruptions, helping the world’s largest crude importer reduce its exposure to volatile energy prices even as conflict in the Middle East rattles global markets.

The shift has become visible since the U.S.-Israel conflict with Iran erupted in late February, sending oil prices sharply higher and disrupting shipping through the Strait of Hormuz, one of the world’s most critical energy chokepoints. While higher fuel prices have squeezed motorists across many economies, China’s accelerating electrification of urban transport has blunted much of the impact.

Government data show Chinese consumers took 3.05 billion taxi and ride-hailing trips in May, with journeys rising 6% compared with the same period last year. The increase reflects more than stronger demand for mobility. It highlights a structural shift in China’s transportation sector, where electric vehicles are allowing fares to remain low even as conventional fuel prices climb.

The phenomenon reveals that Beijing’s years-long push into electric mobility is beginning to generate macroeconomic benefits beyond emissions reductions. As electric vehicles increasingly replace gasoline-powered cars in commercial fleets, China’s economy becomes less vulnerable to oil price shocks that have historically weighed on growth, inflation, and the country’s trade balance.

Analysts say several forces are driving the surge in ride-hailing usage.

A slowing economy has pushed more people into gig work, increasing the supply of drivers, while lower operating costs for electric vehicles have intensified competition among ride-hailing operators. The result has been falling fares that encourage commuters to leave their personal gasoline vehicles at home.

Li, a part-time ride-hailing driver in Beijing who charges his electric vehicle at public stations, told Reuters that fares have fallen by between 10% and 15% since he began driving six months ago because competition has become increasingly intense.

Consumers have responded accordingly.

Social media platforms have been filled with posts from motorists saying that taking taxis has become cheaper than driving their own petrol-powered vehicles, particularly after accounting for fuel and parking costs.

Yang, a 45-year-old petrol vehicle owner in Beijing, said she increasingly chooses taxis for longer journeys rather than driving herself.

“Especially when gas prices are high, I’d rather take a taxi to places that are too far to bike to. That way, I don’t have to look for parking or pay for gasoline,” she said.

EV Penetration Reaches Critical Mass

China’s electric taxi fleet has now reached a scale capable of influencing national fuel demand. According to the Ministry of Transport, roughly half of China’s 1.3 million licensed taxis are now fully electric. In many of the country’s largest metropolitan areas, electrification is approaching complete adoption.

Ride-hailing giant Didi said it added another 2 million hybrid and electric vehicles to its platform last year, bringing its total fleet of non-fossil-fuel vehicles to approximately 8 million. Electric vehicles now account for about 75% of total mileage completed through the platform.

That transformation means a growing share of China’s urban passenger transport no longer depends directly on gasoline prices. Greenpeace projects that by 2035, electric vehicles will account for around 90% of all taxi and ride-hailing mileage in China.

Daizong Liu, East Asia director at the Institute for Transportation & Development Policy, said higher fuel costs have accelerated a behavioral shift that was already underway.

“As fuel prices have gone up, people are driving their own petrol cars less,” Liu said.

“But overall travel demand is still increasing, so more trips are shifting to public transport, such as taxis and the subway.”

Oil Demand Weakens Despite Rising Travel

Perhaps the clearest indication of this structural transition is China’s fuel consumption.

Despite road freight volumes rising 2% and road travel during the May Day holiday reaching a record high, the country consumed 10% less gasoline and 14% less diesel in May than a year earlier.

The disconnect between rising transport activity and falling fuel consumption marks a major departure from China’s historical growth model, where economic expansion typically translated into steadily rising oil demand.

The shift also helps explain China’s surprisingly sharp reduction in crude imports.

China’s crude oil imports plunged 41% year-on-year in June to about 29.3 million metric tons, marking their lowest level in nearly a decade. During the first half of the year, crude import volumes declined 11%.

Analysts believe part of that decline reflects inventory drawdowns, but weakening structural demand from the transportation sector is becoming increasingly important.

By importing less oil during a period of geopolitical disruption, China has also indirectly eased pressure on global crude supplies, helping moderate international oil prices.

The transportation shift provides Beijing with a new layer of energy security.

China has long been one of the world’s largest importers of crude oil, making it highly vulnerable to supply disruptions in the Middle East and maritime chokepoints such as the Strait of Hormuz. Electrifying commercial transportation reduces that dependence by replacing imported oil with domestically generated electricity, including power from renewable energy, nuclear plants, and coal-fired generation.

J.P. Morgan analyst Natasha Kaneva said the recent conflict may have accelerated longer-term changes.

“The conflict may have accelerated behavioral changes that were already underway, leaving China structurally less dependent on oil than the market has historically assumed,” she wrote in a July 2 research note.

Whether those behavioral changes become permanent remains uncertain.

J.P. Morgan expects Chinese gasoline demand to continue declining in 2027, although at a slower pace than this year. The bank forecasts demand will fall by about 50,000 barrels per day next year after an estimated decline of roughly 150,000 barrels per day this year.

Consumer behavior also suggests some flexibility remains. Zhang, who owns both an electric vehicle and a hybrid, said she typically operates her hybrid in battery mode when gasoline prices rise, but switches back to filling the fuel tank when prices fall.

“When I saw prices had fallen recently, I went to fill up the tank for my hybrid,” she said.

AI, Batteries, and Industrial Policy Boost The Transition

The decline in transport-related oil demand also amplifies China’s broader industrial strategy. China dominates global battery manufacturing, electric vehicle production and much of the supply chain for critical minerals. Continued EV adoption supports domestic manufacturers while reducing exposure to imported fossil fuels.

At the same time, the country’s expanding electricity generation capacity, including renewable energy, nuclear power, and energy storage, allows transportation demand to shift from imported oil toward domestically produced electricity.

The trend comes as AI-driven demand for batteries, semiconductors and power infrastructure is reshaping industrial investment worldwide, placing China in a stronger position to leverage its manufacturing scale across multiple strategic sectors.

However, some analysts note that if China’s transportation sector continues to electrify at its current pace, the world’s largest crude importer may become progressively less sensitive to geopolitical oil shocks, potentially altering long-term demand forecasts and reducing one of the biggest historical sources of volatility in global oil markets.

China’s campaign to revive domestic consumption through easier access to credit is running into a growing financial strain among households, with consumer loan defaults reaching record levels as weaker incomes, a prolonged property downturn and a fragile labor market leave millions struggling to repay debt.

Reuters reports that the trend is exposing a key contradiction in Beijing’s economic strategy. While policymakers want households to borrow and spend to offset slowing exports and a deep property slump, banks are becoming increasingly reluctant to lend because of mounting credit risks, creating a vicious cycle that threatens efforts to rebalance the world’s second-largest economy toward consumption-led growth.

According to the report, the problem is illustrated by 27-year-old telecom maintenance worker Jack Chen from Jiangsu province. After relying on credit cards, online loans, and a car loan to cover living expenses during lower-paying periods, he now faces debts of about 140,000 yuan ($20,685), roughly equivalent to his annual salary, after his employer reduced wages and eliminated fuel allowances.

Despite cutting spending to essentials such as food, rent, and fuel, Chen says interest charges continue to compound.

“The debt just kept rolling over and getting bigger,” he said.

His deteriorating credit profile has also made matters worse. Although he has never defaulted on a loan, lenders are rejecting new borrowing because of his rising debt burden, leaving him with few options to refinance existing obligations.

Chen’s situation reflects a broader deterioration in household finances as China’s economy loses momentum. Official data released Wednesday showed China’s economy expanded at its slowest pace in more than three years during the second quarter, underscoring how weak consumer demand continues to offset relatively resilient manufacturing and exports.

The government has spent several years attempting to shift growth away from debt-fueled property investment toward domestic consumption. To support that transition, the People’s Bank of China (PBOC) has repeatedly urged commercial banks to increase household lending.

However, banks have responded cautiously as defaults continue rising. Instead of expanding lending aggressively, many lenders have tightened underwriting standards, making it more difficult for consumers to obtain new credit even as policymakers encourage spending.

The weakness is evident in recent lending data. Short-term household loans contracted 7% year-on-year last month, highlighting subdued demand and stricter lending practices.

“The conundrum is that, for the most part, only those with bad credit are looking to borrow,” the report said.

Nicholas Zhu, a banking analyst at Moody’s, said the quality of borrowers has deteriorated.

“More creditworthy customers are reducing credit card usage,” Zhu said.

“Less creditworthy consumers remain active borrowers, leading to higher asset risks for lenders.”

That dynamic creates a difficult environment for banks. The safest customers are paying down debt rather than taking on new loans, while those seeking additional credit are often the most financially vulnerable.

Rising Bad Loans Expose Growing Financial Stress

The increase in household financial stress is becoming increasingly visible across China’s banking system. Research by Gavekal Dragonomics shows the stock of household non-performing loans (NPLs) surged more than 20% last year to a record 2.22 trillion yuan ($324.5 billion), equivalent to approximately 1.6% of China’s GDP.

The research estimates that as many as one in ten Chinese adults fell behind on debt repayments during 2025, underscoring the scale of financial pressure facing households. Bankers interviewed by Reuters said much of the deterioration stems from aggressive consumer lending undertaken last year as authorities encouraged banks to support consumption.

Now lenders are adjusting.

A loan officer at a mid-sized Chinese bank said the institution has revised its consumer credit model to place greater emphasis on stable salary income after high default rates among borrowers whose creditworthiness was previously assessed more heavily on property ownership and other assets.

Banks are also attempting to prevent loans from being formally classified as non-performing by offering repayment extensions, restructuring debt, or allowing borrowers to pay only interest temporarily.

“We communicate with customers first. If they can’t repay the principal, we ask if they can pay interest, or even partial interest. If so, the loan won’t be classified as non-performing,” an employee at a joint-stock bank told Reuters.

“Currently, the situation with overdue retail loans is very serious.”

Analysts note that actual bad loan levels may be significantly higher than reported because Chinese banks often restructure troubled loans before officially recognizing them as non-performing.

Even among China’s largest lenders, signs of stress are becoming more visible.

The country’s five biggest state-owned banks all reported higher personal loan non-performing loan ratios last year. Bank of Communications recorded the largest increase, with its personal loan NPL ratio rising 0.5 percentage point to 1.58%.

China Merchants Bank, widely regarded as China’s leading retail lender, reported that its personal loan NPL ratio increased to 1.14% during the first quarter of 2026, while its credit card delinquency ratio climbed to 1.90%.

Policy Support May Not Solve The Underlying Problem

Despite deteriorating loan quality, Beijing continues to encourage borrowing. Earlier this year, authorities tripled the maximum consumption subsidy available to borrowers to 3,000 yuan and expanded the program to include credit card installment purchases.

Yet consumers remain cautious.

Susan Wu, a 28-year-old office worker in Guangzhou, said she has repeatedly rejected calls from China Merchants Bank encouraging her to convert purchases into installment payments to qualify for subsidies.

She said she has never used installment financing and prefers to avoid additional financial obligations.

Economists believe that policymakers may be targeting the wrong problem.

TS Lombard economist Minxiong Liao said China’s weak consumption is fundamentally driven by stagnant income growth, widening income disparities and an inadequate social safety net rather than limited access to credit.

“The binding constraint for boosting consumption isn’t access to credit,” Liao said.

“It’s income growth, income distribution and a strong social safety net that would lessen the need for precautionary saving.”

He warned that encouraging households with weak or uncertain incomes to take on more debt could worsen financial vulnerabilities rather than revive spending.

“Pushing cheaper consumer credit at households whose incomes aren’t growing risks adding to the delinquency problem,” he said.

The growing divergence between Beijing’s policy objectives and commercial banks’ risk management highlights one of China’s most difficult economic challenges. While authorities want stronger household spending to drive growth, rising debt burdens and weakening labor market conditions are making both consumers and lenders increasingly cautious. This, thus, complicates efforts to engineer a durable consumption-led recovery.