[Flagship PB Center Chronicles④] Shinhan PWM Family Office Banpo Center
[Asia Economy Reporter Yoo Je-hoon] "Recently, as competing financial firms have aggressively opened flagship PB centers in Gangnam, Seoul's representative 'buchon (wealthy neighborhood),' it feels like an 'invisible war' is underway. Customers often use PB centers from three to four financial firms simultaneously to gauge the services. Therefore, the competitiveness of PB centers depends on how differentiated financial and non-financial services they can provide."
In Banpo, an emerging wealthy neighborhood in the Gangnam area, the 'Shinhan PWM Family Office Banpo Center,' targeting VVIP clients with assets around 10 billion KRW, is gaining a strong reputation. The Banpo Center aims to establish an advantage in the flagship PB center competition by offering differentiated services tailored to ultra-high-net-worth individuals' needs, from business succession and inheritance to concierge services.
A View Reminiscent of an Observation Deck... Nordic-style Interior Enhanced with Luxury
During a visit on the afternoon of the 5th to the Shinhan PWM Family Office Banpo Center in Banpo-dong, Seocho-gu, Seoul, the clean and luxurious interior immediately caught the eye. Having been newly renovated in August from the existing Shinhan PWM Center, the entire 945㎡ (approximately 286 pyeong) space is decorated in a Nordic style emphasizing simplicity, stability, and luxury.
The Banpo Center's signature space is the 260㎡ (about 80 pyeong) VIP lounge, which you encounter upon entering. The ceiling decoration, made from a special paper material imported from Germany, draws attention, while beyond it, the expansive view captivates visitors. The building housing the center is located on a hill (Seoripul Park) overlooking the entire Banpo area, giving the impression of being at a high-rise observation deck.
One side of the VIP lounge features a viewing room where customers can enjoy music and movies. Equipped with soundproofing and a home theater system, it feels like a private cinema. Opposite the viewing room is a small dining room where guests can enjoy light refreshments along with wines provided by the center or beverages brought by customers themselves. The lounge is open to clients until 10 p.m. on weekdays and 8 p.m. on weekends. It is reportedly popular for seminars, lectures, small parties, family events, and social gatherings, with reservations already booked a month in advance.
A Banpo Center official said, "Because the lounge is located at a relatively high altitude with an open view, many customers visit to enjoy the sunset scenery along with light refreshments. Interest in the dining room, where wine parties can be held, is also high, so despite the center being recently opened, plans for expansion are underway."
Beyond the lounge are workspaces including consultation rooms where clients meet with advisors and safe deposit boxes for storing valuables. The consultation rooms are designed with various concepts to cater to clients' tastes, ranging from Nordic to traditional Korean interiors. Most banking services can be handled within these rooms thanks to an integrated computer system, eliminating the need to move elsewhere after consultations. The most impressive feature in the consultation rooms is the large monitor and video consultation system at the front. This system allows consultations using various visual materials and data, as well as real-time discussions with experts from Shinhan Bank's head office Wealth Management (WM) department.
"Fierce Competition Among Flagship PB Centers... Differentiated Services Are Key"
The Shinhan PWM Family Office Banpo Center is the third family office center launched by Shinhan Bank, following the Gangnam Center (Daechi-dong) and Seoul Center (Namdaemun-ro). A family office refers to a financial institution providing services for ultra-high-net-worth individuals and their families. Accordingly, this center also targets ultra-high-net-worth clients with assets around 10 billion KRW. Shinhan Bank chose Banpo-dong for its third family office center because the area is emerging as a new wealthy neighborhood in Gangnam.
Center Director Kim explained, "With large-scale redevelopment and reconstruction projects underway, the title of 'representative wealthy neighborhood' has shifted from Apgujeong-dong to Daechi and Dogok-dong, and now to Banpo-dong. Unlike the Seoul Center in Gangbuk, which mainly serves traditional wealthy individuals aged 70 and above, and the Gangnam Center, which caters to many venture entrepreneurs and young rich, Banpo-dong is centered around CEOs, executives, and professionals in their 50s and 60s."
Business succession and inheritance, common concerns among the wealthy, are also shared by ultra-high-net-worth individuals in Banpo-dong. Although many clients in their 50s and 60s are still active in society and not immediately pursuing succession or inheritance, inquiries about preparing for these matters ahead of retirement are frequent, according to Director Kim.
Competition with other institutions' flagship PB centers, which are rapidly increasing, is an unavoidable challenge for the Banpo Center. Therefore, the center places emphasis on 'service differentiation.' It operates a dedicated team called the Investment Consulting Center (ICC) for financial portfolio management and provides comprehensive consulting on land, housing, and commercial facilities through its real estate investment advisory center.
Non-financial services are also essential. The SFC offers services close to a hotel concierge, including domestic and international performance reservations, overseas travel itinerary management and vehicle protocol services, reservations at world-renowned restaurants and hotels, luxury goods purchases, performance and exhibition bookings, and golf booking agency services. Director Kim stated, "We operate membership services not just by providing non-financial services but with the concept of returning a portion, a few percent, of actual profits to customers," adding, "Customer responses have been positive."
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