Compared to the previous month, the private banking industry seems to be more affected by COVID-19, especially with market slumps in major economies over the past few weeks. The economic impact of the spread of the COVID-19 pandemic has forced private banks to look “microscopically” at their P&L.
Chee Chien Lim, a private banking veteran and the CEO of Hanz Asia Partners, a Singapore based consultancy and hiring firm, told Asian Private Banker that the crash in stock and bond markets has sent shockwaves through many industries, especially the banks.
Lim suggests that the aggressive hiring over the last few years by some private banks may have come to an end. “This pandemic, more importantly, the adverse impact on the global stock markets, has in some ways reminded banks to be business focused, instead of headcount focused. Banks that have hired aggressively in the last couple of years would now be looking microscopically at their P&L.”
Lim continued: “I would not be surprised if we see more restructuring in some Banks in 3Q20. Bear in mind that SARS lasted eight months and that we are only four months into COVID-19, yet we have already seen more than 10 times the number of deaths of SARS, and a 30% drop in the Dow Jones index.”
He added, however, that some boutique banks are less affected than others, and that private banks with a much lower cost-to-income ratio would see this as an opportunity.
“These banks are very clear about their strategic hiring plans, thus discussions are normal, if more discerning. In a survival of the fittest, the fitter bank will recover faster and steer around quicker to ready itself for market growth,” he said.
Appetite to hire remains
While the pandemic has created havoc in people’s lives and caused businesses to rethink their plans, Jack Metters, private banking team lead at Selby Jennings in Hong Kong told Asian Private Banker that the impact on private banking is less than on other segments in the banking industry.
“Private banks are less affected than other functions in the bank [in the US stock market crash]. The US banks might be more cautious, but in general, private banks still have the appetite to hire,” said Metters.
“With the virus outbreak, wealth planners said they are doing better now than average as many of the HNWIs who are business owners now have more time and interest to discuss on the phone.”
While the market slowdown has produced opportunities for wealth planners to better connect with their clients, he said the private banks are putting the hiring of less urgent vacancies on hold due to the extra arrangements that are needed as a result of the virus outbreak, while more job opportunities are coming from trust companies.
“Trust companies of smaller scale still have an appetite to hire and they have more discretions on the precautionary measures,” he said. “Businesses have focused hiring in their trust administration teams as there is still a pipeline of new business from the previous months, while the hiring for revenue generation positions is slower.”
Asian Private Banker’s Movers & Shakers table provides a monthly snapshot of the people moves that mattered most to the region’s wealth management industry. Click an individual’s name to see the story and context behind each move.
Have a move to report? Email us at [email protected].
|WHO||LEAVES||PREVIOUS TITLE||JOINS||NEW TITLE|
|Jyrki Rauhio||Citi PB||South Asia head||/||/|
|Rachel Ryser||Credit Suisse PB||Regional team lead, Asian private clients offshore||Marcuard Heritage||Managing director|
|Urs Grueter||Credit Suisse PB||Market head, Thailand and Vietnam||Marcuard Heritage||Managing director|
|Hayden Matthews||HSBC PB||CEO, Australia||ANZ PB||Director of family office|
|Benjamin Pedley||Hokkaido AM||CIO||ANZ PB||Investment advisor, family office team|
|Kitty Chou||UBS GWM||HK Hub head for global financial intermediary markets||EFG||Head of IAM, North Asia|
|Kenneth Chan||UBS GWM||Head of business development for global financial intermediary markets||EFG||Deputy head of IAM North Asia|
|Karen Ho||UBS GWM||/||EFG||IAM team, North Asia|
|Amanda Fong||UBS GWM||/||EFG||IAM team, North Asia|
|Alice Chan||UBS GWM||/||EFG||IAM team, North Asia|
|Chung Lay Ang||/||/||EFG||Business manager|
|Peter Golovsky||Cone Marshall||Global head of fiduciary services & head of Asia||IQ-EQ||Head of private wealth, Asia|
|Axel Lomholt||Vanguard||Head of portfolio review, Asia & interim head of Asia||Vanguard||Head of portfolio review, Asia|
|Scott Conking||Vanguard||Principal, head of US institutional investor services||Vanguard||Head of Asia|
|Rimmo Jolly||Citi||Regional head of ETF and index sales and business development, Asia Pacific & Japan||BlackRock||Head of ETF business, APAC [4 May 2020]|
|Tidjane Thiam||Credit Suisse||CEO||Kering||Member of the board [Apr 2020]|
|Alastair Ding||Value Partners||Country head & sales director, Singapore||Xen||Chief commercial officer|
|King Au Lun||Value Partners||President||/||Retired [Aug 2020]|
|Jérôme Thuillier||Bank of Singapore||MD, programme director, group wealth platform||UBP||COO Singapore|
|James Pritchard||UBP||COO Singapore||/||/|
|Rainer Michael Preiss||Taurus Wealth Advisors||Portfolio strategist||The Global CIO Office||CIO, equities|
|Greg Hingston||HSBC||Head of Wealth & Personal Banking (WPB) Hong Kong||HSBC||Regional head of WPB Asia [1 Apr 2020]|
|Richard Surrency||Algebris Investment||MD, capital strategy||Franklin Templeton||Head of alternatives sales, Asia|
|Stephen Pak||UBS||ED, head of APAC capital introduction||Citi PB||Director, hedge fund sales specialist, Asia, Citi Investment Management|
|Himanshu Bhagat||IIFL WM||Managing partner||Julius Baer Wealth Advisors (India)||Head of WM|
|June Wong||Deutsche Bank WM||Head of business risk management, APAC||Deutsche Bank WM||Head of EM lending [1 May 2020]|
|Alek Pfajfer||Deutsche Bank WM||Head of EM lending||/||/|
|Tony Tan||Deutsche Bank WM||Head of strategic lending Asia||Deutsche Bank WM||Head of strategic lending Asia & head of SEA and GSA lending [1 May 2020]|
|Vincent Wee||Deutsche Bank WM||Managing director||Marcuard Heritage||Senior managing director|
|Joanne Tay||Deutsche Bank WM||/||Marcuard Heritage||Assistant RM|
|Kathryn Shih||UBS||President APAC||Julius Baer||Member of the board [1 Sep 2020]|
|Christian Meissner||Bank of America Merrill Lynch||Head of global CIB||Julius Baer||Member of the board [16 Apr 2020]|
|Christophe Mauchle||VP Bank||Head client business||/||/|