Tobias Heller

operating head, Hong Kong and North Asia, UBS Global Wealth Management Copy link

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

One key success factor is designing processes and systems that can meet and exceed the expectations of our clients and regulators in an integrated manner. Maximising efficiency is an additional concurrent key requirement.

To achieve superior client and regulatory outcomes, the process and system landscape also needs to be seamlessly integrated along the entire client lifecycle. Starting with KYC background and investment preferences at client onboarding, client profiles get continuously enriched with insights gained from ongoing interactions, product usage patterns, and regular reviews.

An integrated, yet modular process and system landscape also allows us to stay ahead of evolving industry trends, client preferences and regulatory expectations in an agile manner, leveraging our global scale while allowing room to customise for local nuances.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

Technology companies have started to effectively complement traditional bank offerings. This is most notably true in commodity services such as payments, where new technology solutions have expanded the market offering deeper into the peer-to-peer small payment space. More broadly, recent technology innovations have yielded new ways for companies across industries to interact with clients.

Technology companies are also offering increasing value as partners for banks. Evolving client requirements and regulatory expectations are providing abundant opportunities for banks to partner with technology companies to accelerate step-change in critical capabilities. The most widely adopted approach appears to be collaborating with a multitude of partners that offer specific solutions to support different parts across the banking value chain. In selective areas, some banks are also incubating their own technology innovations.

Banks are well advised to focus on their core competencies and to drive targeted technology innovation proactively. We are committed to innovating and staying ahead through digitalisation.

Cassandra Venn

operating head, South East Asia & JIA, UBS Global Wealth Management Copy link

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

For UBS Global Wealth Management, our strategy is clear: continue to reinforce our position as a leading and the only truly global wealth manager.

For us, 2024 is a pivotal year with two clear priorities. Firstly, focus on providing high-quality service and positive outcomes to our clients, and secondly, to ensure the successful convergence of the UBS and Credit Suisse wealth management platforms so that we can bring the best of UBS to all of our clients.

Of course, the integration is a complex task that is not to be underestimated, but we are confident we will achieve this by continuing to leverage our combined strength and to work together as one team – across platforms, and regionally and globally – with a laser-sharp focus on ensuring the transition for our clients is as seamless as possible.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

In 2023, we continued our focus on Global Wealth Management technology as a key differentiator for our clients by launching a number of industry-leading platform enhancements.

Most notable was the launch of digital structured products, allowing our wealth management clients to customise and transact popular structures such as equity-linked notes and reverse convertible notes through our online banking and mobile platforms and the continued investment into enhancing Circle One by UBS, our digital platform that brings the best of the UBS global ecosystem to clients.

In addition, we are excited to partner with the broader tech ecosystem via the UBS Next portfolio of internal and external initiatives. Like many industries, our focus on technology investments has evolved to focus on elevating client experience, rather than pure revenue opportunities, and we have seen a positive impact through client feedback and increased digital engagement.

In 2024, as we continue with the convergence of our platforms, our priority will be to ensure that they are fully equipped to manage the additional scale, services and global reach needed to ensure a seamless experience for our clients.

Pamela Tseng

COO, private banking and wealth management, Standard Chartered Bank Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

2023 was a pivotal year for Standard Chartered Private Bank with clear priorities to elevate client experience and enhance operating efficiencies. Our goals were achieved, and more than that, we are well on our way to setting new standards around client servicing.

Of course, resource optimisation required us to make critical choices about prioritisation. Despite that, we were able to achieve our goals while prioritising our client’s interests.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

Client service remains our top priority going forward. Our integrated activities in the COO team align with our business goals in the private bank. These are centred around automation, platform convergence, and differentiated servicing.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

The private bank’s technology transformation is guided by Standard Chartered Bank’s overall digital and technology transformation agenda. Within the private bank, platform scalability, convergence, and digitisation continue to be key initiatives for us. The business objectives are translated and integrated into every squad so that each person in a squad is aligned to the overall strategic agenda of the private bank.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

We leverage technology not as a replacement but as an enabler. Technology integrated with a human touch produces a higher level of customer service by fostering a cohesive and integrated experience for our clients. For example, the use of data analytics enables us to understand client preferences. This directly helps us to tailor tools and solutions that equip our advisors to have more meaningful conversations with our clients.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

We recognise the intrinsic value of the data we possess and are meticulous around our approach in ensuring data integrity. The bank has a data governance framework that ensures accuracy, completeness and compliance. At the same time, we are also committed to data security and privacy. We continue to invest in cybersecurity initiatives to safeguard and ensure our clients’ data is accorded the highest level of protection.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

Adapting systems and processes to meet evolving regulatory standards can be resource-intensive, requiring ongoing investments in technology and staff training. Addressing these challenges necessitates a comprehensive approach that can include partnering with certain fintech or regtech companies, having a robust conduct plan which fosters a culture of proactive compliance, complemented with strong monitoring mechanisms, as well as a collaborative engagement with our regulators.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

Technology and fintech companies can be both potential competitors and partners. Standard Chartered Bank has over the years partnered with some and invested in others – for instance, with Atome in Singapore and Bukalapak in Indonesia. Standard Chartered brings to these partnerships our strong presence in 53 markets across as well as cumulative client service experience of over 160 years.

These partnerships have created a new level of energy that is driving further innovation and motivating us to rethink how we do things. What is important is that we have clarity on our strategic goals which enable us to partner with technology and fintech companies that are aligned to our common goals.

Jacky Ang

Global Chief Operating Officer Copy link

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

We aspire to be the top Asian private bank, rooted in Asia but global in perspectives and capabilities. We undertook several organisational changes in the past year. For instance, we established a three-hub strategy in Singapore, Hong Kong and Dubai. This reduces cross-border management by business heads with more robust in-market oversight and governance.

Given our ambitions in the family office space, a dedicated advisory platform for our family office and financial intermediary clients was established to provide customised solutions and services that meet the increasing demand for wealth planning and portfolio advisory.

We see technology as an enabler to help us reach our goals. In this aspect, digital transformation has always been a priority for us as we are operating in an environment driven by shifting client expectations, heightened competition, and technological advancements. Our technology vision is to be digital at our core and our sustained focus is to invest in innovation and services that will redefine the future of wealth management technology.

We want to be able to deliver personalised and contextualised information to clients which is relevant to them. We also leverage the OCBC Group for enterprise-wide applications and benefit from the scale of the Group in running our underlying technology infrastructure.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

We continue to double down on digitalisation, leveraging technology to offer our clients a differentiated experience.

For instance, we recently launched our redesigned client mobile app, which aims to deliver a hyper-personalised experience tailored to clients’ preferences and portfolios. The app is faster, has a sleek and modern interface, is easier to use, and allows us to provide clients with timely and personalised advisory and investment content. It is used by close to 90% of our clients today, a significant increase from about 50% before the pandemic.

Our focus on technology and digitalisation extends beyond enhancing client experience. We also prioritise improving staff productivity and empowering them to perform more effectively. We are introducing a Relationship Manager (RM) Copilot, powered by generative artificial intelligence (AI), in the second half of the year. This provides RMs with a robust, real-time overview of clients’ portfolios and investment insights, allowing them to engage clients with relevant talking points, optimise clients’ portfolios and drive an exceptional client experience.

Last year, we rolled out a generative AI chatbot to our employees, which was an initiative as part of the OCBC Group and a first by a Singapore bank. The chatbot can be used to help with writing, research and ideation. The feedback has been positive, with productivity boosts of up to 50 per cent reported.

Ultimately, we believe that the core of the private banking and wealth management business will remain relationship based, with technology complementing the entire service model, enabling bankers to drive more dynamic and efficient engagement internally as well as with our partners and clients.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

With evolving regulatory requirements, it has become more important for banks to beef up their compliance systems and processes. We have been doing so by investing in technology. For instance, we were recognised by Regulation Asia last year for our Tax Evasion Clustering Analysis project, which uses machine learning to examine client behaviours and patterns to flag potential tax evasion. The AI-powered solution helps to analyse vast volumes of data and identify suspicious activities. The tool has helped to reduce the time spent on analysing such data, allowing employees to focus on other meaningful tasks. On a Group level, we participate in industry-wide initiatives which are essential for strengthening Singapore’s reputation as a global financial centre. We will continuously enhance our compliance capabilities.

Alex Sim

Chief Operating Officer, UOB Private Bank Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

A key milestone for us in 2023 was the integration of our Privilege Reserve offering with the private bank to create a bigger private wealth business to serve U/HNW clients under a single business unit. This involved managing a significant change agenda for our clients, bankers and the whole ecosystem of support, processes, and systems.

Post integration of UOB Privilege Reserve and our private bank, our private wealth segment now serves customers with over S$2 million in AUM.

These changes included upskilling our bankers on the private bank suite of products and services, ensuring a seamless transition for clients by streamlining forms and documentation that clients need to complete and acknowledge, and proactive communications on how to use our new PB MyPortfolio app.

The private bank platform was also upgraded to accommodate a significantly bigger pool of privilege reserve clients. Its improved capabilities, which include risk management tools, self-service functionalities and straight-through processing for account opening, helped to enhance client experience and advisor effectiveness.

To gear us up for growth going forward, we also strengthened our leadership bench and expanded our talent pool with strategic senior hires across various teams. We grew our pool of relationship managers from 200 in 2021, to 320 at the end of 2023. We aim to reach 400 by 2026.

The success of this integration lays the foundation as we seek to increase scalability and both investment advisory and processing efficiency of our platforms. We aim to better curate our investment advice alongside our products and services, and provide more timely and deeper market insights relevant to clients’ investment portfolios.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

UOB Private Bank’s goal is to double its private wealth AUM by 2026. As of December 2023, UOB’s private wealth segment contributed more than half of the bank’s wealth management business of S$176 billion AUM.

More than half of UOB Private Bank clients are business owners and entrepreneurs with the remaining being professionals. To acquire new clients and widen our market share, we adopt a multi-prong approach strategy:

• Entrepreneurial Success: UOB has close to 90 years of legacy and is currently run by the third generation. As an established third-generation owned and operated bank by entrepreneurs, we have deep entrepreneurial roots and understand the needs of entrepreneurial family businesses, and the importance of proper wealth management through strategic planning: from wealth protection, to growth, to succession and legacy planning.
• Strong ASEAN connectivity: UOB has the largest ASEAN network, further strengthened by the acquisition of Citigroup’s consumer banking business in four ASEAN markets – with capabilities to offer a wide suite of solutions for both onshore and offshore banking, for both personal and business needs. The political stability, transparent government policies and pro-business environment in Singapore make UOB a stable and reliable bank that is well-positioned to capture potential from within ASEAN and Greater China. This offers new opportunities for growth for our clients across the region.
• “One Bank” approach offering total banking solutions: clients are supported by the various business units of UOB. For example, our established retail and commercial bank capabilities offer private bank customers a holistic approach to all their banking needs.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

UOB is the first bank in Singapore to implement a permanent flexible work policy. We allow all staff to work remotely for up to two days of the week. Even post-pandemic, we continue to provide hybrid working arrangements to eligible employees as part of our commitment to creating a progressive and engaging work environment.

To allow even greater work flexibility, UOB also has additional measures such as staggered working hours, and our Flexi-2 policy that grants staff two hours off during a working day each month to attend to personal responsibilities. Our aim is to be able to offer our staff the flexibility to vary parts of their working hours away from the office, such that they have adequate discretion to handle and balance certain exigencies outside of work.

Despite the benefits brought about by flexible work arrangements, different teams – due to the nature of their work – do have different preferences in work arrangements. In particular for private wealth management, we observe that our teams are increasingly appreciating the value of working together in person.

Coming back to the office catalysts include working chemistry between team members that facilitates impromptu discussions and ideation, which are often harder to actualise when working remotely. As a bank, we provide sufficient flexibility to cater to varying needs and preferences of our employees, without compromising on the effectiveness of deliverables.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

Harnessing data analytics will allow the business to better understand clients’ investment behaviour, risk appetites and preferences, leading to greater personalisation of investment advisory.

In 2022, UOB implemented a proprietary analytics model which considers factors such as customers’ personal preferences, personality traits, investment, and language preferences, to identify the most suitable RM for each customer. This has helped us augment our advisors’ capabilities and know-how, enabling them to be more personalised and effective in client engagement.

We are also exploring data and analytics usage to enable more proactive risk management. This will help us adapt quickly to unexpected events or crises, particularly in investor protection and fraud controls.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

Our approach remains grounded on UOB’s broad omni-channel strategy. For our HNW clients, we offer them options on how and when they wish to be engaged, either via dedicated RMs or digital self-service.

We also seek to continuously refine and personalise the different services offered on each of these channels, to provide greater convenience and flexibility for our clients.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

With the recent cases of alleged money-laundering offences in Singapore, the expectation on banks to mitigate Anti-Money-Laundering (AML) risks continues. While not prevalent, such bad actors will continue attempting to take advantage of Singapore’s proactive business stance as an international financial centre by moving their assets here. As they continue to enhance the sophistication of their attempts, banks will have to keep up with their risk management and controls, which will inevitably increase the cost of business operations.

One of the key lessons that the industry has learnt in the past year is the need to continue to broaden and deepen collaboration, especially the sharing of critical information across banks and the ecosystem of service providers, as well as with relevant government agencies. The Monetary Authority of Singapore has developed a digital platform called COSMIC (Collaborative Sharing of Money Laundering/Terrorism Financing Information & Cases), to facilitate the sharing of critical information among banks. It is set to be rolled out in phases starting from 2Q2024.

Internally, we have also established policies, guidelines and best practices to guide our colleagues in their daily activities. We conduct mandatory training for our RMs and strictly adhere to a zero-tolerance policy for fraudulent acts.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

This phenomenon of fintech looking to disrupt the finance industry is not new and will continue to exist. The entire ecosystem – including fintechs, big tech companies, and banks – have different core capabilities and possess comparative advantages. Collaboration is probably the most effective and efficient way forward to reshape and improve the industry. From our experience, adopting a partnership approach allows the harnessing of technology to improve banking, resulting in faster and expanded access to services and capital.

Overall, the cross-pollination of ideas between banks and tech companies can create innovative solutions that benefit consumers, businesses and the larger financial industry.

One of the key metrics for overall bank performance in Asia is the cost-to income ratio. What is the sweet spot for this ratio, and how are banks tackling the cost side of the equation in Asia, whether relating to investments, real estate, or other operating costs?

Given the different operating models that every private bank has or leverages, the sweet spot for this ratio will vary. Instead of seeking an ideal quantitative ratio (which is commonly the aim for many private banks), our key comparative advantage or differentiator is our ability to offer a comprehensive suite of products and services beyond wealth management, supported by the broader UOB Group. This will allow us to help meet the personal and business financial needs and aspirations of our clients.

This is achieved with a clear set of capabilities and enablers, including leveraging technology, data, partnerships and strategic initiatives to enhance operational efficiency. This delivers greater value to our clients.

Alexander Tsikouras

chief financial officer and chief operating officer Asia, VP Bank Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

In 2023, VP Bank celebrated 15 years in Singapore with our new office at Guoco Midtown, reinforcing our commitment to seizing opportunities in Asia. The new office showcases the bank’s deep commitment to clients, employees and the region – and brings the bank’s workplace to life. Meticulously designed with the client experience at the forefront, the bank has expanded its hospitality area three-fold, accommodating varied meeting formats, from online video conferences, formal in-person meetings, to more casual engagements. The workplace area features an increase in collaborative spaces, enabling employees to easily come together to collectively ideate and co-create.

With financial intermediaries at the core of VP Bank’s business, the bank’s commitment and dedication to this segment was underscored by winning the prestigious Best Private Bank – Intermediaries award from Asian Private Banker for the second year in a row and the third time in the bank’s history. We successfully tackled inflationary pressures through cost discipline and focussing on efficiency improvements from front to back office.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

Asia is on the cusp of the largest intergenerational transfer of wealth in history, and the opportunities in wealth management are immense. VP Bank has both the right talent and the right environment to take advantage of these opportunities. We have integrated Singapore and Hong Kong into one region, creating stronger synergies and business momentum between the two locations. This streamlined model also allows us to improve the effectiveness and efficiency of our service to intermediaries and private clients.

In addition to the creation of an international team within the intermediaries division, which has opened up new opportunities, VP Bank Singapore celebrated the 15th anniversary of its operations in 2023.

Our Strategy 2026 – “Seize Opportunities” – aims to achieve profitable and sustainable growth across the group – and Asia is a key focus. In our journey through the Asia roadmap, we have successfully completed the “Rebuilding the Foundation” phase, setting the stage for “Accelerated Growth” in 2024 and beyond.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

At VP Bank, we are driven by our core values: “We achieve”, “We Care” and “We explore”. These values permeate every level of the organisation, from our leadership to our team members, and guide every interaction with our clients, employees and partners. They enable us to work with purpose and have a profound impact on everything we do.

The pandemic highlighted the importance of providing staff with the necessary tools and equipment to facilitate long-term WFH, particularly for health and welfare reasons. All our employees are provided laptops and our new meeting rooms are designed to optimise video conferences with state-of-the-art equipment and easy connectivity options allowing us to work as efficiently – whether remotely or in the office.

During the design of the Singapore office, we considered the new reality of WFH, which enabled us to significantly increase space in the client area. The new office showcases the bank’s deep commitment to clients, employees and Asia – and brings the bank’s workplace to life. Meticulously designed with the client experience at the forefront, the bank has expanded its hospitality area three-fold, accommodating varied meeting formats – from online video conferences, formal in-person meetings, to more casual engagements.

For this reason, VP Bank attaches great importance to an open exchange of information and ideas, fair compensation and flexible working models, as well as promoting the strengths of its employees through continuous development opportunities. As a result of an internal survey, we have introduced a Social Day (Wednesday), on which all colleagues work from the office. This has been very well-received, as it is an opportunity to have the full team present at the same time. It also makes it much easier to plan physical meetings, town halls or team lunches, as we know that everyone is in the office that day.

VP Bank recognises that employees should be viewed as individuals with different needs and their own life contexts. In addition to annual leave, employees also receive other benefits such as family care leave and extended childcare leave, depending on the location. These benefits are industry-competitive and designed to be inclusive.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

Digital innovation is a prerequisite for ensuring competitiveness. We invested in more technological capabilities to serve our clients better, while also outsourcing our IT infrastructure. We now have a flexible, scalable IT infrastructure that enables us to develop new client services and integrate products and services from complementary third-party providers.

We continue to invest and re-energise our business model to cater to clients’ evolving wealth management needs with our latest offering – digital client onboarding. Developed with intermediaries and their needs at the heart of it, this new service will enhance the efficiencies of client servicing and exemplifies our strong understanding of clients’ rapidly evolving needs. This was rolled out in Liechtenstein and Switzerland in June last year and will be launched in Asia soon.

The launch of Margin Man, a tool for enhanced risk monitoring of FX leveraged trading, is also expected to result in a positive client experience and improved FX margin management capability. The tool will be rolled out to more clients in Asia in phases this year.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

Our investment in a larger and more welcoming client area is a sign that client contact is still very important in private banking. Our strategic presence in two hubs in Asia (Singapore and Hong Kong), means we are in close geographic proximity with the majority of our clients.

The use of technology allows for the automation of routine tasks, thus freeing up time for our RMs to focus on engaging our clients in meaningful discussions. For example, our “Future Workplace” environment runs in the cloud. This gives us access to all our data regardless of location or time of day. This makes us more mobile, more efficient and faster.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

IT security is a key concern and a very important aspect. Thanks to our partnership with Swisscom, we are connected to their Security Operation Centre, where our systems are monitored day and night against cyber attacks. This enables us to offer our customers enhanced security for their data and also to protect our operating systems. And by outsourcing our IT infrastructure, we have put in place a compatible, flexible platform that can be expanded with many other services. Based on a wide range of innovative products and services, as well as digital advisory processes, we aim to strengthen our client relationships and further improve the client experience.

VP Bank takes pride in offering a single banking platform across all booking centres, translating into a holistic and inclusive client experience for Intermediaries. This, thoroughly complemented by our “Open Wealth” infrastructure, grants our intermediaries 100% investment flexibility, which means that they can deploy investment strategies with prudence, foresight and, most importantly, relevance to their clients’ demands and wealth management goals.

Our online banking also provides sophisticated support for trade execution and, for intermediaries, sophisticated multi-level user management. We will continue to increase the use of e-banking by our intermediaries and clients for transactions and payments.

Data and privacy protection and cross-border data transfers have come under harsh scrutiny. In China, the rules are fairly stringent. How are banks reacting to growing data compliance pressures? What are the difficulties they are facing, and what more can be done by regulators to make the process more efficient?

Data privacy has always been a key focus for banks and during the implementation of GDPR and PDPA – banks have made significant efforts to comply with the new requirements. In practice, it can be challenging to operationalise the various requirements to cover the constant updating of frameworks, processes and legal forms.

In addition, both areas require specialist knowledge, so small and medium-sized banks may outsource these to external legal advisers and service providers, which can be costly. Aligning different regulatory expectations can help to make it more efficient and we hope to see more harmonisation by global regulators in these areas.

In general, when banks have a footprint across different countries, one difficulty is taking into account all such laws (where they apply) and reconciling the different standards of data protection required under such laws.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

They can be both partners and competitors, depending on the specific companies and their focus. When collaborations occur, it can lead to innovative solutions that benefit clients and the industry as a whole.

Partnerships between banks and tech companies are reshaping the industry in several ways: by accelerating the banks’ digital transformation, improving the customer experience and providing deeper insights into customer behaviour. Fintech companies can benefit from banks’ brand recognition and long-standing expertise in topics such as financial regulation and compliance.

Private banks should embrace technological advancements, foster a culture of innovation, and invest in technology and talent (through upskilling and attracting new talent).

One of the key metrics for overall bank performance in Asia is the cost-to-income ratio. What is the sweet spot for this ratio, and how are banks tackling the cost side of the equation in Asia, whether relating to investments, real estate, or other operating costs?

At VP Bank, we have a clear vision and strategy: digital transformation is a top priority. We continue to automate back-office processes and introduce new tools to facilitate and accelerate the onboarding of new clients.

As a group, and as a region, we have well-established governance processes in place to constructively challenge the business cases for investments and ensure that we prioritise resources on initiatives that help us achieve the ambitions of our Strategy 2026.

With annual income growth of 4 to 6 per cent, annual net new money growth of 4 per cent, a cost/income ratio below 75 per cent until 2026, and a Tier 1 capital ratio above 20 per cent, we continue to focus on the three main pillars of a successful future: growth, profitability and stability.

Andreas Zingg

chief operating officer Asia, Julius Baer Copy link

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

Embracing the post-pandemic landscape, Julius Baer has adopted a forward-thinking approach to work-from-home and flexible work. We have integrated these models into our operational fabric, recognising their pivotal role in both employee satisfaction and productivity. Despite the availability of remote working options, office spaces remain important. Post-pandemic, they are utilised differently and are designed to foster collaboration and innovation.

To support the bank’s growth strategy in Asia, we have recently expanded our office space in both Hong Kong and Singapore. In Singapore, we relocated our back-office to Changi Business Park in January 2024, with a 40% increase in space. In both locations, we redesigned our offices to support hybrid and activity-based working. We have created a variety of spaces within the office where staff can connect, exchange ideas, and innovate. Flexible working arrangements, bolstered by robust technology, are indeed a long-term fixture at Julius Baer, ensuring we remain at the forefront of industry evolution and employee wellbeing.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

In 2023, we prioritised digital innovation as part of our three-year strategy cycle, earmarking CHF 1 billion globally from 2023 to 2025 for technology and business transformation. Central to our strategy is enhancing the digital client experience. In the past two years, we have upgraded our mobile and e-banking platforms, introducing cutting-edge features from e-trading across several asset classes to interactive chat solutions, enabling clients to place orders via WhatsApp or WeChat. In 2024, we plan to further enhance the digital client experience by introducing features such as e-signature and client notifications via e-banking.

Beyond digital solutions for clients, Julius Baer aims to be a leader in digital banking for our RMs. Our comprehensive tool landscape for RMs includes the Digital Advisory Suite DiAS, Markets Toolboxes, and a new Credit Engine, which have significantly influenced revenue growth and client engagement. In 2024, we will introduce the Mandate Solution Designer in Asia, supporting RMs in customising discretionary solutions for clients. We are also planning to bring new Generative AI tools into production, following nearly a year of experimentation and exploration by our global innovation teams.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

In recent years, technology has reshaped client engagement and financial service consumption. Clients, particularly in Asia, demand convenient, high-quality digital interfaces from their bank, without compromising on personalised advice. At Julius Baer, we have embraced digital innovation while upholding our commitment to personalised client service. This approach is not a balancing act but a synergistic blend of technology and personal touch. We’ve responded to evolving client preferences by enhancing our wealth management services with advanced digital solutions.

Our investment in technology spans the entire value chain, focusing on enhancing digital channels and e-banking capabilities, with a special emphasis on Asia. While we continue to prioritise a high-touch, RM-centric business model complemented by digital channels, we’re also exploring a digital-first offering for next-generation, tech-savvy clients. This initiative aims to craft a new private banking experience for digital natives. Concurrently, we’re strengthening cybersecurity to protect client relationships and expand our market presence. Our strategy positions us at the vanguard of innovation, seamlessly integrating technology with the essential human aspect of wealth management.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

In the era of digitalisation, Julius Baer leverages data to innovate and enhance banking experiences. Our data strategy focuses on four core objectives: transparency & resilience, trustworthy data, globally harmonised data, and maximising business value. We’re committed to integrating data-driven insights into all aspects of our operations, from digital transformation to product innovation. Our holistic strategy guarantees the delivery of unparalleled solutions, enriching client experiences and driving revenue growth.

A prime example is our in-house structured product optimisation engine, SPARK. This tool, driven by big data and analytics, is fundamental to our trading platform. It facilitates the creation of customised products tailored to diverse client needs, efficiently analysing millions of potential combinations rapidly, and aligning seamlessly with client specifications.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

At Julius Baer, we utilise technology as a transformative tool, enhancing our wealth management expertise. We view tech and fintech companies not just as competitors but as essential partners in innovation. As a founding member of Tenity, a global fintech accelerator and ecosystem, we actively engage in global programs (like the Global Web 3.0 Program in 2023) to identify fintechs offering innovative solutions that benefit both our clients and the bank. Our strategy focuses on close collaboration and co-creation, integrating external technical expertise with our in-depth industry knowledge and experience.

To remain at the forefront of the industry and prepare for upcoming changes, we established our innovation lab, Launchpad, in Singapore in 2021. Unique among pure play wealth managers in Asia, this facility – led by our global innovation head since June 2023 – is dedicated to driving the bank’s global innovation initiatives. Launchpad acts as a hub for innovation, identifying and nurturing new business models, services, and technologies that bring substantial value to our clients and the bank, especially in Asia. In 2023, with a specific focus on generative AI, Launchpad aims to strategically integrate this technology into our operations and client services, showcasing our commitment to staying ahead in a rapidly evolving industry.

Carol Chan

chief operating officer, Asia, Lombard Odier Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

2023 was a year of transition where we saw a rapidly evolving world – geopolitically, economically, technologically and socially. Despite the challenges, we remained focused on growth – in both our people and the technology we adopt.

A key milestone would be the completion of our move to our beautiful new Singapore office in December. We took on an additional 8,000 square feet of office space, with a design that is centred on large spaces and flexible work zones to foster closer collaboration and communication. In line with our “New Ways of Working (NWOW)” project driven out of our global headquarters, significant improvements have been made to the workplace and IT infrastructures. This allows greater flexibility for staff to adapt to new work trends including hot desking, mobility and working from home.

Digital transformation has always been a priority at Lombard Odier, which underpins a holistic user experience that in turn attracts and retains our client base for business growth. Our proprietary platform, the G2, is renowned among professional investors as one of the most sophisticated wealth management platforms in the industry. Private clients can easily access real-time portfolio data, conduct administrative functions, execute payments and access relevant, timely research to discuss investment ideas with their bank advisors. External asset managers can use it to efficiently manage portfolios, and family offices can leverage it to consolidate and control customer accounts.

We crossed the midway mark of our seven-year project in 2023 to build our next generation platform – the GX. This improved platform will see an elevation of user journeys, from digital client acquisition and onboarding, portfolio management, targeted investment advisory and sales management and front office efficiency. Amid the technology innovations that are in progress, we updated our workflow to enhance efficiency and established a matrix governance structure to strengthen accountability.

What is your bank’s operational strategy going into 2024? What targets is the bank setting itself, and how does it plan to meet them? What challenges do you anticipate along the way?

In 2024, we will continue with our growth plans and focus on our business transformation program. A key focus for the bank is to functionally align our key performance and risk indicators to standard global measurements and improve overall competitiveness. This includes streamlining workflows in areas such as client onboarding and account life cycle management, with the overall aim of enhancing the client experience.

Change management is always a great challenge and we focus on stakeholder management and communication to all those impacted as well as those not impacted by the change. A globally aligned organisation gives us the opportunity to look at strategies on how we can benefit from economies of scale through centralisation, leverage best practices across the group and take advantage of our geographical time differences with a “follow the sun” approach. To facilitate this, we have appointed a dedicated change manager that has transferred to Asia from Switzerland, bringing best practices from the group. We look forward to a smooth project implementation and integration.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

At Lombard Odier, we fully embrace and live strong human values that are at the core of our DNA. We are here to support employees with flexible working arrangements to help encourage better work-life harmony, work productivity and work efficiencies. From a group policy perspective, we recognise the importance of balancing professional and private lives, and we provide all colleagues the flexibility and solutions for remote working.

At the same time, we thrive on the synergies and ideas that we create through close collaboration and face-to-face discussions as one team. This is one of our core values and everybody plays a part in this. Hence, there has been no reduction made to office space, as it is important for us to work in the right collaborative environment. The analogy to this is an orchestra – we need the space to create and practise together to excel.

Aside from the uptake in office space in Singapore last year, the Hong Kong team moved into its new office in 2022 – with an estimated 50% space increase – as operations continue to grow. As a people-centric bank, everyone has a dedicated desk in the office, with sufficient space for collaboration and bonding.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

In recent years, private banks have seen an acceleration in their digital agenda, which is fundamental to the industry. However, there is still a need for client proximity and to focus on what clients need. While quality of advice and services are still what make the difference, banks who are able to augment these with strong technological capabilities will be the winners. At Lombard Odier, we have always prioritised a bespoke relationship with our clients. Our cutting-edge technology is not there to replace human interaction. It is to augment and enhance it.

We recognise the transformative impact of technology post-pandemic, but different clients have different expectations. Hence, we need to be agile and prepared. We have seen some shifts in client expectations – where clients expect a more proactive stance from the bank, as opposed to being content with periodic updates or changes to their offerings and experience. At the height of the pandemic, a study we conducted showed that 87% of leading families and entrepreneurs in the region believe that a bank’s degree of digitalisation will matter going forward. It showed a desire for banks to offer new services and new ways of communicating as next steps in the evolution of banking.

At the same time, clients are becoming more sophisticated. For example, 83% of respondents from the study indicated that reporting capabilities are important. The ability to report a performance net of tax seems to be of particular interest to these HNWIs, who typically have multi-country exposure.

While digital advancements bring about accessibility and efficiency, we remain committed to maintaining a balance between human and digital engagement. As a private bank, the human touch remains at the heart of our value proposition. Our focus is and has always been on our clients’ needs, where technology is an enabler and a means to an end. This involves leveraging technology for operational excellence – such as engaging clients on administrative processes through digital channels to reduce costs and errors – while preserving the personal touch through dedicated relationship managers.

At Lombard Odier, we see banking technology as a key asset and we are on a constant journey to ensure our banking platform continues to evolve – through the GX programme – to modernise and improve the digital interactions and experience of our customers and users. But above all, we focus on what is best for the client.

TS Murali

chief administrative officer, International Wealth Management (IWM), Nomura Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

Nomura IWM is on track to record its best performing year in terms of both scale and growth: our total assets are now touching US$20bn with significant net new money inflow over the last 12 months. We delivered our expansion target with a series of growth initiatives, despite the difficult market environment.

We strategically made key RM hires that are led by our new coverage heads and today we have about 100 RMs covering our core markets of Greater China, Southeast Asia, Middle East, and the NRI segment. We also launched the IWM Dubai branch in 2023, which aligns with our strategy to expand in the Middle East and select EMEA/MENA jurisdictions.

We have further strengthened our focus on Greater China with a key senior hire as head of North Asia, and we also on-boarded our new head of coverage for Southeast Asia, global South Asia and the Middle East. So far, we have expanded our client base to more than 16 new jurisdictions, expanding our client footprint from IWM hubs in Hong Kong, Singapore and Dubai.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

Looking ahead, we believe we are poised for a period of accelerated growth across our core markets in Dubai, North Asia and Southeast Asia on the back of the hires we made and platform upgrades. We will continue to attract top talent from the industry as we make significant investments in people, and enhance our product and services capabilities while integrating our global markets and investment banking solutions for our clients.

We do foresee more investment being required to ensure we continue to have an efficient operating model, a streamlined client journey and automation of certain front-to-back processes. It is a continuous iteration process to identify the areas of improvement and then address them.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

The pandemic sparked a need for us all to adopt and adjust to many new ways of working, such as remote working and WebEx conferencing. Most IWM employees are now back to the office, and work-from-home requests are considered on a case-by-case basis. We continue to offer flexible working arrangements depending on employees’ needs, business considerations, location, and managers’ discretion. We expect this extension of flexibility in way of working to continue and we see potential for operating cost savings, especially in the back office. We also offer a competitive parental leave policy.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

Some of the key technology initiatives in 2023 for us included upgrading our core banking system, roll out of an enhanced FX trading system and automating key processes thereby improving efficiency across the spectrum of our services and offerings. These enhancements come together as a whole to enhance client experience and platform efficiency. We calibrate our technology investments on both quantitative and qualitative measures – including ROI, whether it has improved the risk & control environment, enhanced operational efficiency and elevated client experience.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

We see an increase in clients’ adoption of digital channels post the pandemic, but when it comes to private banking, it is impossible to overstate the importance of high-touch personalised services and connection when it comes to understanding clients’ needs, financial state and personal situation. We have upgraded digital tools that allow our RMs to connect with clients more smoothly, but ultimately we believe this will complement the customised services that enable us to deepen the client relationships.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

New technologies and data analytics capabilities are increasingly enabling personalisation at scale in the wealth management space. We have been seeking to incorporate data-driven client analytics components into our service model to identify client opportunities and improve the productivity of RMs. We are enhancing our ability to aggregate and analyse client data across different systems to improve the experience of both our clients and RMs.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

We constantly review our policies and procedures and mark-to-market against best practices to ensure full compliance with evolving regulatory requirements. Regulators around the world are focused on setting the bar higher when it comes to AML monitoring standards and protecting client interests. The challenge is to ensure that client experience continues to be seamless while doing so. We continue to evaluate our compliance framework to ensure we are in full compliance with applicable regulatory requirements, while delivering a smooth client experience.

Data and privacy protection and cross-border data transfers have come under harsh scrutiny. In China, the rules are fairly stringent. How are banks reacting to growing data compliance pressures? What are the difficulties they are facing, and what more can be done by regulators to make the process more efficient?

Data and privacy protection is indeed an area that is being tightened across regions. The challenge is to ensure banks adhere to the requirements without making it unduly onerous from an operational and client experience perspective. Our client onboarding processes and associated documentation are evaluated on an ongoing basis to ensure we are aligned with regulatory expectations.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

It is exciting to see more technology companies participating in the wealth management sector by targeting more granular segments of the value chain. We are constantly seeking to upgrade our platform and capabilities through both in-house buildup and external partnerships. We actively look at opportunities to collaborate with fintech companies across the spectrum of our products and services, and we also work directly with third-parties for some transformation projects. We believe fintech companies can be partners to banks to afford clients a more tailored and richer experience.

One of the key metrics for overall bank performance in Asia is the cost-to-income ratio. What is the sweet spot for this ratio, and how are banks tackling the cost side of the equation in Asia, whether relating to investments, real estate, or other operating costs?

Cost-to-income ratio is indeed a key metric. Banks across the region face challenges in this area, given the increasing cost of limited, high quality talented staff. Increasing regulatory expectations also present cost challenges. Most firms are focusing on controlling costs through automation initiatives and gaining operational efficiencies. Post pandemic working arrangements also present opportunities to moderate real estate costs while expanding the business.

Kam Azim

chief operating officer, RBC Wealth Management Asia Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

We’ve spent the past few years focused on growing our brand and adding bankers in the region and we’re seeing strong results in terms of growth and performance. 2023 was another positive year for RBC Wealth Management in Asia, where it was particularly pleasing to see robust deposit growth, solid revenue from structured products and a boost in insurance referral income. This momentum reflects our clients’ trust in our brand and the breadth of our investment and holistic wealth planning solutions.

In terms of milestones, RBC finished 2023 with the Canadian government granting approval to proceed with the acquisition of HSBC Bank Canada. In addition to strengthening RBC’s premium domestic business, the acquisition positions RBC as a bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

We made some significant new appointments towards the end of 2023, including Rod Ireland as head of wealth management, Asia, in addition to his role as head of global markets APAC. Under Rod’s leadership, we’re looking forward to building on our momentum in the region.

We’ve already added to our team in 2024 with a suite of senior hires including Victor Chao, managing director, head of private banking, North Asia. In addition to individual hires, we’re looking to build our presence by adding teams of new bankers in our Singapore and Hong Kong offices to serve clients in eight strategic locations in Asia: Hong Kong, mainland China, Taiwan, Singapore, Thailand, Indonesia, Malaysia, and the Philippines.

RBC Wealth Management is the only Canadian bank offering comprehensive wealth management services in Asia, so we are uniquely positioned to serve clients in this region and also clients that are global in nature – particularly those with a strong connection to Canada, the US and the UK with complex needs relating to education, tax residency, real estate, wealth transfer, estate planning and business needs across international borders. We are the market leader in Canada, we have a growing position in the US, and we are one of the largest wealth managers in the UK and Ireland following the acquisition of Brewin Dolphin.

One particular challenge that I would point out is also an opportunity. We are embarking on the greatest generational wealth transfer in history against a backdrop of economic uncertainty, persistent cost of living pressures, geo-political issues, a changing world and families spread across the globe. At the same time, we’re increasingly seeing diverging generational attitudes towards wealth management, how wealth should be invested and maintained, and how family businesses should be run or sold. So, now more than ever, it is crucial for wealth managers to adapt and offer highly personalised services to meet the diverse needs of clients of all ages.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

We’re a relationship-driven bank, and human connection is core to our culture. We believe working together face-to-face enables teams to make quicker decisions, learn from each other, solve problems more effectively, and build stronger relationships. In-person connections among teams also spark innovation and creativity that drive the success of our business. While we have clear guidelines that emphasise the importance of being together, we also recognise the importance of flexibility and offer a range of work arrangements to meet employees’ needs.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

Successful private bankers put their clients at the centre of everything they do. We continue to invest in technology to help our clients prosper in an ever-changing world, but we continue to place tremendous emphasis on understanding our clients, their needs and values.

Indeed, we pride ourselves on leading with discovery, rather than starting conversations around frameworks and products. Our approach includes bringing in experts across our business to have a holistic conversation with clients and their families, such as investments, banking and wealth planning. Clients don’t want to be sold to, they want to have a deeper, introspective conversation about meeting their goals, needs and values.

It’s also vital that new bankers share the emphasis we place on understanding our clients and offering highly personalised services, so this is central to our recruitment and onboarding programmes.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

In a fast-changing environment, staying abreast of client behaviours and market trends has never been more important. We leverage data and analytics to optimise the client onboarding journey to enable a more effective and efficient process. This also reshapes the client experience for the better as we gain insight into client portfolios and understand their evolving needs and opportunities.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

RBC has invested heavily in AI for financial services through Borealis AI. We’re one of the leading voices on this transformative technology across Canada and we are ranked in the top three for AI maturity across the global banking sector. With the emergence of generative AI capabilities, we’re exploring how to safely and securely tap into the full potential of this technology to develop the best products and services for our clients. We believe that combining ideas and human creativity with real-time information and data will open up endless possibilities for our bank, our economy and our society.

Marc Kermaidic

chief operating officer, Wealth Management Asia, BNP Paribas

Samir Bimal

chief transformation officer, Wealth Management Asia, BNP Paribas Copy link

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

In 2023, we focused on using technology to elevate our clients’ experience and engagement, enhance RM and sales efficiency, reducing risk, and promoting environmental consciousness.

Our award-winning digital banking solution myWealth has been a cornerstone, providing clients with 24/7 access to their portfolio and our bank’s services. This state-of-the-art platform includes active advisory services, a proprietary research library, online trading capabilities, and more.

We ventured into an array of technological tools to reinforce our foundational themes. Our initiatives included enhancing our prospect pipeline management through automation, enriching client engagement with Adobe Campaigns, gaining deeper business insights via Tableau, ensuring prompt client communication through a dedicated notification centre, and championing a paperless environment with DocuSign.

Focused intently on our clients, we launched a transformative user experience (UX) project aimed at crafting a mobile-centric interface that redefines client interaction.

We also achieved a significant milestone in our journey to become a more data-driven organisation. We have begun converting the unstructured ‘voice data’ from our extensive collection of client calls into structured, analysable information.

In 2024, we aim to not only build upon these investments but also ensure their widespread adoption to maximise benefits for both clients and internal processes.

Key metrics for assessing our technology investments include their impact on revenue generation and client experience. The specific investments that have significantly contributed to these areas will continue to be a focus.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

In our view, technology does not replace the high-touch, personalised service we’re known for. Rather, it complements and enriches it. Trust and personal relationships remain the bedrock of wealth management, and technology serves as a conduit to enhance these interactions. Technology seamlessly integrates at various operational levels, from the creation and curation of content to advisory services, execution, and communication.

We are also exploring AI applications to streamline and improve efficiencies for routine tasks. It is important to recognise that our clients come from diverse backgrounds and generations, each with unique preferences for interacting with our services. Whether they gravitate towards executing transactions on MyWealth or prefer in-person consultations, our commitment to excellent portfolio management and investment advice remains unchanged.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

Indeed, data is often likened to ‘the new gold,’ and in the banking sector, it is an incredibly valuable resource. While having access to vast quantities of personal data theoretically provides deep insights into customer preferences, the reality in wealth management, particularly with HNWIs, is that the volume is smaller, though no less significant.

We handle this data with the utmost seriousness, prioritising the protection of our clients’ personal information, as well as that of our staff. Compliance with regulations such as GDPR and various Asian data protection laws is not just a legal obligation but a foundational principle of our operations.

While we explore opportunities to harness this data responsibly to enhance client experiences, we remain steadfast in our commitment to data security and compliance with the highest regulatory standards.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

To address regulatory challenges, we need to invest in agile systems that can quickly adapt to evolving requirements. The difference in regulatory demands across jurisdictions, such as those between Hong Kong and Singapore, presents a unique set of challenges.

For example, we have automated our suitability and order management to meet the regulatory standards. When the Hong Kong Monetary Authority introduced the Sophisticated Professional Investor (SPI) framework, we were able to promptly adjust our systems, ensuring our Hong Kong clients could quickly benefit from these new regulations with minimal time to market.

Regulatory updates often lead to an increase in manual processes, which can increase manpower costs and result in operational inefficiencies. However, our proactive investments in innovative technologies, such as Smart KYC for automated name searches and Speech Analytics for expediting client instruction related controls, help us adapt swiftly and effectively to regulatory changes.

Patrick Dreyfuss

chief operating officer, DBS Wealth Management Group Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

I see our biggest achievement as our ability to continue to attract significant assets from both new and existing clients organically, and at a sustained pace. This is testament that our clients look to us to help them manage and protect their wealth during uncertain times. This extends to our leading family office practice, where today, we bank more than one in three of the 1,100 family offices in Singapore.

We’ve also increased our engagement with clients both from a portfolio advisory and wealth planning perspective, allowing them to enjoy the best-of-both-worlds approach via our ‘phygital’ advisory model. One of our differentiators is how we use data analytics and AI/machine learning to better serve our UHNW clients in a segment that was traditionally only driven by high-touch, face-to-face interactions. Today, nine in ten of our clients monitor their portfolios and transact round-the-clock via our award-winning DBS digibank (wealth) app. They receive curated research, actionable insights and recommendations to enable them to make more informed investment decisions. These ‘nudges’ are a result of us leveraging AI/machine learning to analyse more than 16,000 customer attributes, which include individual risk profile, browsing history, investment activity, and portfolio holdings. This is not limited to transactional alerts. For example, we developed a whole series of nudges related to wealth planning needs. Our RMs and wealth planning experts also receive similar AI-driven ‘nudges’ that sharpen their advice, which results in a more nuanced and personalised engagement with clients.

We also continue to place heavy emphasis on upskilling our front office teams to better serve clients. Our RMs are required to complete a structured training programme that covers investment trends (such as sustainable investments), private assets and digital assets, wealth planning solutions, and risk management (such as AML and credit risk). In addition, they have access to a full catalogue of relevant training that they can tap on to further deepen their expertise in specific areas of interests. This is also complemented by structured communications on sharing client success stories.

Finally, we’ve seen a surge in account openings last year, which created some temporary short-term challenges. One way to better meet this demand was to reorganise ourselves as a ‘horizontal’ organisation. Representatives from relevant departments are organised by ‘squads’ with joint ownership and shared outcomes for certain activities, such as client onboarding. This helps us improve the way we monitor our customer experience journey and collectively improve on its efficiency.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

We intend to continue to develop our wealth management franchise organically through our dual booking centres in Singapore and Hong Kong, as well as our relationship centres in Dubai, the UK and Thailand.

We are also keen to engage more clients on broader, strategic conversations around their corporate financing needs, which we can meet through our one-bank proposition. What sets us apart from the other private banks is that we play on our competitive advantage as a commercial bank with a strong balance sheet and risk controls. Apart from insights and guidance from the relevant global industry teams for the specific investment being considered, our value-add stems from our ability to access our institutional banking group’s (IBG) deep understanding of sponsors via our commercial banking relationships built over several economic cycles, to connect the right clients together. This ensures that we engage our clients not only on their wealth management needs – and help grow their money – but also on the full spectrum of their banking needs.

While generative AI has emerged as an important theme for investors, it also presents an exciting opportunity for us to continue amplifying the power of our people, improve operational efficiencies, and augment the client experience. We are currently engaged in various proof-of-concepts, such as enhancing our wealth advisory or our KYC processes. I believe generative AI will also help uplift further our ‘phygital’ engagement model, taking what we have currently to the next level: a seamless and robust integration of all our digital and physical touchpoints, and facilitating an even more dynamic transition between a client’s online and offline interactions.

One of the key metrics for overall bank performance in Asia is the cost-to-income ratio. What is the sweet spot for this ratio, and how are banks tackling the cost side of the equation in Asia, whether relating to investments, real estate, or other operating costs?

Over the years, our cost-to-income ratio has remained below 50% – well under the industry average.

There are several contributing factors which go beyond cost discipline. For example, our digitalisation journey has helped us reduce cost by achieving productivity gains. Our platforms are highly automated and integrated, with a high-degree of ‘straight through processing’ from requests for quotes, to final execution and booking.

We’ve also developed workbenches where our employees can access consolidated views of client information and investment data they need, including AI-generated “Next Best Conversations”. These prompts boost productivity by reducing time and effort spent on researching, and our RMs can now have targeted, contextualised and fruitful conversations with our clients. Our clients too are empowered to transact on their own if they so wish, as they receive investment insights tailored to their investment profile and portfolio. They also have access to a wide range of information and services digitally. Our ‘phygital’ engagement model enables us to effectively extend our reach and engage our clients meaningfully on topics that matter to them – be it online or offline. This not only contributes to reducing our costs, but also helps improve revenue.

We are also leveraging our group’s synergies by mutualising systems. For example, we maintain a regional private banking platform across our Singapore and Hong Kong offices, which helps optimise change and streamline costs. The platform is shared with our affluent clients. We also leverage other infrastructures within our consumer/institutional businesses, such as specific components of our digibank or payment infrastructures.

June Yong

head of platform and business management, Asia Pacific, Global Private Banking and Wealth, HSBC Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

From a platform perspective, we are committed to making it easier for clients to bank with us by creating an ecosystem of integrated digital tools and solutions to use on demand, wherever and whenever, to meet our client’s international needs.

In 2023, we continued to enhance our client facing capabilities by expanding client journeys and deepening the functionality we offer through a comprehensive suite of digital platforms and solutions from online trading, GPB Chat, to Prism Advisory. We have taken this further with the implementation of a digital concierge team to provide full support to clients and front office staff on all digital activities. At the same time, we have continued to upgrade our front-to-back internal systems, delivering enhanced product capabilities to enhance the client experience.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

A key challenge to all private banks remains that client needs and behaviours evolve rapidly. It is more important than ever for us to stay close to our clients, strive to be more efficient and nimbler in delivering to their increasingly sophisticated needs and, above all, to make sure our business is built for the future.

The client is at the heart of everything we do at HSBC. We are constantly reimagining how our clients bank with us, as well as digitalising and streamlining our product offering and services whenever possible. One of the key priorities for us this year has been ensuring that we curate services and solutions that cater to our clients’ aspirations and distinctive needs across the wealth continuum.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

At HSBC, we believe taking a flexible approach to where, when and how we work will help us to deliver a great client experience and a great employee experience too. Our goal is to get the balance right, ensuring we can be at our best and deliver great outcomes, whatever the working environment.

How did your bank leverage and adopt technology in 2023? And what is planned for 2024? What are the key metrics employed to assess technological investments and which specific investments have had the most significant impact on revenue generation and overall client experience?

Over the last two years, we focused our efforts on further enhancing our comprehensive suite of digital capabilities that cover every key stage of the client lifecycle.

Notably, we have further enhanced the digital ecosystem around GPB Chat. Our clients in Hong Kong and Singapore can now receive the latest investment insights from our chief investment office, along with product ideas, and place an order within GPB Chat. This follows the launch of the Authenticated Chat and Digital Investment Insights features.

Authenticated Chat is a secure communication channel that provides access to a wider range of banking services, from general queries to order-taking. Our clients can also choose their preferred channels to receive our insights, whether it’s through GPB Chat, app notifications, or email.

Looking ahead, we will continue to invest in our platforms to further improve the features and products available.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

While digital tools will only grow in importance in the future, for private banking clients we believe a hybrid model that combines digital capabilities with human expertise is the most effective.

We are harnessing the potential of cutting-edge technologies to understand our clients more deeply, respond to their needs faster and provide tailored services – available anywhere and at any time. For example, Prism Advisory is a contractual, portfolio-based advisory and investment service for clients that combines expert guidance and data-driven insights. With it, we are able to help clients reach their investment objectives more effectively using data insights and let our expert teams focus on providing value-add services to the clients.

Laurent Mirepoix

chief operating officer, Indosuez Wealth Management Copy link

Reflecting on 2023, what were your bank’s major milestones and how did you achieve them? Conversely, what were the setbacks and challenges encountered along the way, and what measures were taken to surmount them?

In Singapore, we have been focused on strengthening both our team of investment specialists, as well as front office teams. Over the last two years, we have progressively brought onboard a number of senior bankers and product experts. Our front office teams are now organised by distinct market segments: Southeast Asia, North Asia, UHNWI, and NRI/EAM and International.

Even as we approached the end of the pandemic, continued high interest rates and inflation have made market conditions increasingly challenging, and the ongoing wars in Ukraine and Israel are still putting pressure on and beyond the financial services industry. We need to adapt and transform on an ongoing basis on all fronts to the fast and evolving internal and external environment.

Keeping close to our clients and understanding their needs and mid- to long-term financial goals is critical to customising a portfolio which protects their wealth. Being part of Crédit Agricole also means our clients have access to a wide and sophisticated array of products, including funds from Amundi. Importantly, the strength and stability of the Crédit Agricole Group – including our capital position and strong CET1 ratio – means that we offer the safety and reassurance our clients need.

Clients can draw on our well-established network across the group, which gives them access to the bank’s global expertise. That is complemented by local insights, allowing us to build customised wealth solutions to suit clients’ ongoing needs.

What is your bank’s strategy going into 2024? What targets is the bank setting itself, and how does it plan on meeting them? What challenges do you anticipate along the way?

Sustainable growth and profitability continue to be the focus for our business. We enjoyed strong net inflows at double-digits over the past three years, especially in the last 18 months. The current make-up of our front office teams is showing great momentum in terms of net new money and revenue, which is a virtuous circle that impacts us positively on all fronts – we expect this trend to continue.

Coming out of the COVID-19 pandemic has brought across more clearly than ever the innate human desire and need for direct connections in real life. Wealth management/private banking is a personalised, high-touch business, and our focus on closely engaging with our clients is more critical than ever. We also remain focused on core investments, including building on DPM and private markets to stay ahead of clients’ evolving needs.

The pandemic popularised work-from-home (WFH) policies and saw a rise in demand for flexible working arrangements. As we transition into a post-pandemic era, what are your bank’s policies in the areas of WFH, flexible work and parental leave? How has WFH impacted the bank’s operating costs, including the need for office space? Are flexible working arrangements and WFH here to stay for the long term?

We had just extended our lease for our offices when COVID-19 started in early 2020. During the pandemic, we equipped our colleagues to work from home and now we have moved into a hybrid model where Indosuez colleagues are able to work from home at least one to two days a week. This also mirrors the fact that wealth management is a high-touch business where face-to-face connections are key to the relationship. Also, regular in-person interactions lead to better innovation and collaboration – many organisations are seeing this more clearly post-pandemic.

We do believe that a hybrid working arrangement offers the best of two worlds. It enables colleagues to collaborate innovatively and build connections in person, and also do the focused solitary work productively when needed. This, like many companies, also means an opportunity to reconsider our office space from an operational and cost perspective.

Employee satisfaction and well-being remain a priority for us. Our most recent employee satisfaction survey for our Singapore branch showed that 83% said they are proud to work for Indosuez and 93% said their work contributed to the satisfaction of their internal and/or external clients.

While technological adoption accelerated by the pandemic brought a host of benefits, this may come at the cost of the high-touch personalised services of traditional private banking. In this light, how do you maintain an equilibrium between client touch and technology?

We are continually pursuing automation and digitalisation. The aim is towards simplicity and convenience, alongside empowerment for our clients – while allowing us in turn to spend more time connecting directly with them. Simultaneously, we are pursuing scale and pooling resources across the various entities in the group, while concentrating on more added-value tasks.

With more discussions surrounding data utilisation, banks have developed a profound appreciation for the worth of the data they possess. How do you identify, correct, and maintain data within the bank, and how are you leveraging data to enhance revenues and simultaneously enhance the quality of customer services and offerings?

Needless to say, client data is sensitive and confidential – and our priority is to safeguard this information with the utmost care. Also, clients are a precious source of information that we optimise to increase our understanding and therefore the service to our clients. We are still in the midst of this journey. We continually evaluate and where feasible, implement the latest technology solutions, including AI, to better the experience for our clients.

As a result of evolving regulatory requirements, private banks are reviewing their compliance systems and processes. What are the current operational challenges posed by regulations, and what can be done to effectively address and overcome these challenges?

We can expect compliance standards to continue to be progressively raised. This is ultimately to protect our clients’ interests in line with regulatory requirements. Thus, it is necessary to integrate systems and processes into everything we do rather than having it just as an extra layer of control. Accordingly, we have pursued a risk-based approach to more accountability at all levels of our organisation, especially for the commercial teams, which are the initial point of entry. For example, over the past two years we have relooked and updated our account onboarding processes and as a result, the timeframe for our account opening has been significantly reduced.

Data and privacy protection and cross-border data transfers have come under harsh scrutiny. In China, the rules are fairly stringent. How are banks reacting to growing data compliance pressures? What are the difficulties they are facing, and what more can be done by regulators to make the process more efficient?

The difficulties with cross border rules is that you have guidance that is specific to each market, which makes their management and control quite challenging. Being part of a large group allows us to have smoother access to the necessary information and have a controlled approach. Simultaneously, we also identify a clear commercial strategy for each market and align that within cross-border parameters.

Technology companies eyeing the financial services sector have the potential to disrupt the industry. Are tech and fintech companies potential competitors or partners? How are partnerships between banks and tech companies reshaping the industry? And what steps should private banks take to prepare themselves for how this will change the industry landscape?

Over time it has come to bear that technology companies eyeing financial services have been less of a threat than initially thought, mainly because the legacy financial services have adapted rather well, making the need for clients to move less viable. We believe fintechs and legacy financial services ultimately complement each other. For example, interesting concepts and technologies are quickly deployed by fintech companies and Credit Agricole Group has been partnering with them in ways that will improve and transform the client experience.

One example is our recent acquisition of a majority stake in Wealth Dynamix, a fintech specialising in client relationship management for private banks. Also, Indosuez together with Amundi acquired a stake in AirFund, a digital platform created in 2021 to facilitate links between management companies and distributors of private markets funds with retail investors.

One of the key metrics for overall bank performance in Asia is the cost-to-income ratio. What is the sweet spot for this ratio, and how are banks tackling the cost side of the equation in Asia, whether relating to investments, real estate, or other operating costs?

The sweet spot for a cost-to-income ratio for wealth management firms is around 0.7 to 0.75, particularly for private banks that are more focused on growing the long-term client relationship. Cost increases are inevitably challenging, especially with the rising cost of labour amid high inflation, and the continued investments in tech and systems upgrades to keep up and exceed ever-changing client demands. Across the group and in Indosuez, even as we remain conservative with our expenses, it is more imperative for us to keep the focus on driving revenue and income alongside optimising our costs.