Best Private Bank — Sustainable Investments

Kwang Kam Shing, CEO of J.P. Morgan Private Bank Asia While support from the government is one of the more indisputably important factors to help ensure the Family Office industry prospers in the region, it will require industry bodies, academia and institutions working in collaboration to grow the family office industry.

A key driver to support the growth of the overall wealth management ecosystem, including the family office industry, is a talent pool that has equally sustainable growth and so collaboration from an academic, institutional and governmental level will be necessary to address fostering a sustainable talent pipeline in the region.

There’s a reason why both Hong Kong and Singapore are financial and wealth hubs of the region and the world. Both relevant government bodies have already done a lot to promote the wealth management and family office industry and in turn we are seeing increasing interest from our global clients to set up shops here in Asia. We are excited to work with the relevant government bodies and industry players to provide input and collaborate in the long term.

Terence Chow, head, RBC Wealth Management – Asia As a gateway to mainland China, Hong Kong is already a great base for wealth managers to serve multiple generations of wealthy families across Asia. Schemes such as Wealth Management Connect will enable Hong Kong-based banks to support clients in the region by creating more fluidity across the Greater Bay Area (GBA), and further afield.

Top of my wish list would be the gradual and measured expansion of the scheme in terms of size of investment and the products available, to make it an appealing investment opportunity for high-net-worth clients. This would accelerate growth for private banks in the region. Tee Fong Seng, CEO Asia-Pacific, Pictet Wealth Management As mentioned above, the initiatives by the governments in Hong Kong and Singapore over the years in incentivizing and strengthening the infrastructure and ecosystem to attract family offices have played an instrumental role in building up the two locations as family office hubs. These efforts will remain critical as an increasing number of family offices around the world are looking to set up in Asia with the main objective of accessing the private market and direct investment opportunities in the region.

Other priorities will be the management and hopefully stabilisation of the COVID pandemic and gradual opening of borders. The ability to travel and engage with clients face-to-face remains one of the key factors for private banks in delivering the best client service and solutions, and growing their business, as well as for the regional private banking industry to be able to develop in the long run.

Omar Shokur, CEO Asia, Branch Manager Singapore, Indosuez Wealth Management Both Singapore and Hong Kong have been rather forthcoming in welcoming family offices in particular, and wealth management in general. Our expectation is that both cities will continue their supportive stance for the industry and that cooperation and consultation between the governments, the regulators and the industry will develop and improve, as it has over the past years. Michael Blake, Asia CEO, Union Bancaire Privée In both Hong Kong and Singapore, we have seen strong support for development of the family office ecosystem and the policy framework for family offices compares favourably to jurisdictions outside of Asia.

Looking at the development of the wealth management industry more generally, we have seen strong support from governments in the critical fields of talent, training and technology, and we will see continued support in these areas. For Hong Kong, the development of the Greater Bay Area presents a generational opportunity for the industry. The authorities have demonstrated their willingness to give more support to this initiative, which will be a critical success factor for Hong Kong in the coming years.

Lok Yim, head of Deutsche Bank International Private Bank APAC Government support in the form of building a strong financial and legal infrastructure allows a clear and transparent tax regime. A stable business environment, a favourable tax environment, plus a pool of professional financial management talent are crucial considerations for us when we expand.

Eleven Ying, global market head and Singapore CEO, Heritvest Global Government’s support for family office is important. Singapore government encourages the wealthy family to set up family office in Singapore with immigration benefits. Travel restriction is less stringent in Singapore than Hong Kong which is another plus for Singapore.

Anton Wong head of Taiwan Market, BNP Paribas Wealth Management

BNP PARIBAS WEALTH MANAGEMENT

The COVID-19 pandemic has prompted more conversations within wealthy families about wealth planning and wealth transition. This has allowed the next generation to become more involved in the family’s wealth management and the family’s trusted private banking partner to shine — by navigating market volatilities to execute the family strategies, thereby proving its worth to both the family founders and the next-gens.

In its next-gen strategy, BNP Paribas Wealth Management’s emphasis begins with a strategic proposition that embraces selected next-gen accounts with zero minimum balance requirements and the flexibility to offer bespoke credit lines (some are in fact “clean” lines) to the next-gen. This enables the next-gen to execute their investment or business ideas without having to first seek parental approval.

Such a value proposition expanded and delivered in 2021. With the trust and personal relationship spanning across generations, BNP Paribas WM, in a typical example, secured its relationship with a strategic client where the actual wealth transfer occurred a few years earlier. The bank has stood by the family throughout the transition process, while renewing a multihundred million dollar credit line with the next-gens, restructuring it into a diversified investment portfolio that aligns with the family’s socially responsible investing (SRI) convictions.

The bank has excelled in catering to the investment needs of Asian next-gens by offering hard-to-access direct investment opportunities. In 2021, the bank was able to present to next-gen clients private shares of a high-profile player in virtual reality and 3D game engines related to the metaverse theme, in addition to providing access to private investment opportunities in an aerospace industry leader.

The emphasis on serving next-gen clients hinges on a

“At BNP Paribas we have been on a very focused journey to build a distinct and compelling offer for Next Generation Asian clients for many years. While the wealth management industry as a whole still primarily answers to the demands of senior generation entrepreneurs, the attention we pay toward younger generations makes us a really special place to build their first few meaningful banking relationships.”

- Anton Wong, head of Taiwan Market, BNP Paribas Wealth Management

dedicated talent training programme where BNP Paribas WM recruits, develops and supports a specific segment of high-quality and sophisticated RMs who have the explicit mandate and corresponding KPIs for developing next-gen relationships.

Recruitment of all front office staff is accompanied by a training programme specifically dealing with navigating the next-gen client landscape. In 2021, 85% of staff had completed their training.

The bank went the extra mile in 2021 by rejigging the internal team structure with a view to facilitating the interaction between bankers of established HNWIs and next-gen bankers.

The vision behind and action in grooming next-gen relationships as the pillar of the private bank’s future overall business has impressed the judging panel and made the argument for naming BNP Paribas Wealth Management the winner in this category for the second year in a row.

BNP Paribas WM is Asian Private Banker’s Best Private Bank – Next Generation Services in 2021.

HSBC GLOBAL PRIVATE BANKING

It is impossible to improve the client experience without first listening to clients and making visible improvements within a relatively short period of time. During a pandemic, such improvements centre around the digital services offered to clients. In 2021, HSBC Global Private Banking won over clients’ hearts and wallet share by the fine prioritisation and precise execution of its digital services revamp.

By diligently acting upon clients’ feedback, HSBC Global Private Banking in 2021 recorded significant improvements in its net promoter score (NPS) measured in client surveys, which translated into a 14% YoY increase in the number of clients in Hong Kong categorised as promoters.

Compared to 2020, 7% more surveyed clients were satisfied with the bank’s digital services and 12% more were satisfied with the bank’s advisory services. The positive feedback is more than a nicety, as it translates into quantifiable financial returns — HSBC GPB found that clients who identified as promoters generate 49% more revenue than detractors and are more likely to make client referrals.

This fine result was achieved by enhancements made online and offline throughout the client lifecycle, based on the promoter clients’ preferences. At the onboarding phase, the bank launched the e-signature function in 2021, enabling remote signing, reviewing and submitting of documents — which made account opening faster and easier for both RMs and prospects.

Another priority identified by clients was the lengthy risk disclosure process in trade execution. The bank streamlined this process by replacing verbal disclosures with automated voice messages on GPB Chat to all PB clients and standard product risks disclosure emails for sophisticated investors, markedly improving time-to-market for investors.

In addition to its digital revamp, HSBC GPB transformed its client service model by pairing clients with investment

“For HSBC Global Private Banking, 2021 was an exceptional year for digital transformation, delivering more solutions, features and products in a single year than most of our competitors would in two or three years. This is a testament to the innovation, dedication and commitment of the team to bring ideas to life, and diligently act upon client feedback to deliver a best-inclass client experience.

Our digital strategy is all about creating great client experiences across the whole client journey — including onboarding, trading, communication and notification, insights & research, payments, and client reporting. We have partnered with innovative organisations and drawn on the strength of the HSBC group — driving speed, scale and redefining banking.

We are proud of the client-centric solutions we are delivering that make banking faster and easier (and more accessible during pandemic restrictions) and are confident that these digital capabilities, together with the skilled bankers, will provide the best of both worlds to serve the sophisticated needs of clients.”

- Sharon Oh, COO, Asia, HSBC Global Private Banking

councillors, acting as holistic investment advisors side by side with RMs listening to clients’ needs and devising various investment solutions offered by the bank from different product specialists.

The transformation not only improved the client experience but resulted in the 2021 investment revenue being 50% higher than two years earlier. By closely catering to clients’ needs, the bank recorded a doubledigit YoY increase in client assets and had received US$14 billion NNM by the end of October 2021.

HSBC Global Private Banking is Asian Private Banker’s Best Private Bank – Client Experience for 2021.

BANK OF SINGAPORE

With frequent lockdowns and travel restrictions forcing most banker-client interaction online during the pandemic, digital banking services and transformation have become the priority of almost every private bank in Asia. Yet, Bank of Singapore stands out for its ability to strike the right balance between providing innovative digital services and solutions, while remaining true to client service principles. In the new normal, the bank’s use of technology to provide customised and personalised services has helped meet the needs of a more digitally demanding client base globally.

Bank of Singapore embarked on its digital client experience journey to achieve a better client experience and streamline processes across front and back technologies. After revamping its digital channels in February 2020, it has been adding enhancements to improve clients’ digital engagement, which proved particularly effective during the pandemic.

These digital platforms have enabled Bank of Singapore’s wealth management businesses to scale through an open architecture design with modular systems compartmentalised as microservices. Open application programming interfaces (APIs) with partners have enhanced external connectivity and created opportunities for better client access to related products and services.

Essentially, this digital innovation has laid the foundation for a strategic move into the next generation, scalable

Praveen Raina global head of Operations & Technology, Bank of Singapore

“Being awarded Best Private Bank – Digital Innovation & Services by Asian Private Banker is a testament to our team’s commitment to supporting business growth. Despite the unprecedented circumstances brought about by the COVID-19 pandemic, we have delivered innovative, best-in-class technology solutions that enable the bank to provide a seamless client experience.

This award reaffirms our technology vision to be digital to the core and our sustained focus to invest in innovation and services that will redefine the future of wealth management technology.”

- Praveen Raina, global head of Operations & Technology, Bank of Singapore

digital wealth platform, enabling clients to tailor their user experience to suit personal preferences, needs and lifestyles and paving the way to deeper innovation around product hyperpersonalisation and contextualisation.

Data analytics and client behavioural insights have enabled the bank to better understand clients’ preferences and to offer personalised, bespoke services that best meet client needs, even when face-to-face conversations are limited.

Bank of Singapore is Asian Private Banker’s Best Private Bank – Digital Innovation & Services for 2021.