Clients are now pickier than ever in the complicated realm of private banking, especially when it comes to sustainable investing.
The position of the private banker has grown increasingly complicated as a result of the expansion of investment products, digitalisation, the diversity of client bases, and the requirement to include strict sustainability requirements into their operations.
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Private banks must maintain focus in the face of all these obstacles and an unending stream of information in order to define the demands of clients and the customised solutions to suit those needs.
A truly global institution, Hamilton Reserve Bank accepts deposits in a variety of international currencies and has offices and representatives all over the world. IT combines the investment and banking skills of Wall Street with a solid British foundation.
A broad range of integrated services, such as private and business banking, wealth management, trust and escrow services, family offices, investment banking, and new business formation, have been offered by the bank or its affiliates to a global clientele since 1994.
Speaking to PBI, the CEO of Hamilton Reserve Bank, Prabhakar Kaza, discusses the incorporation of sustainability into the services in an interview with Private Banker International.
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By GlobalDataPBI: Why is sustainable investing important?
Prabhakar Kaza: As far as companies are concerned, the valuation goes up if it’s what the people want. The same thing goes for community groups.
If we talk about the past, there was no traffic problem, how air pollution was the best, how there was no carbon problem, it was different.
It’s better to tackle these things now, than later.
PBI: What does the future hold for sustainable investing?
Prabhakar Kaza: At this point of time, sustainable quarters, currently there are setbacks, but they have stopped, the outflows especially in the UK have stopped.
More people are convinced to invest in sustainable products. Companies are also very clear that we need to produce more than what we take in and spend.
Cost effectiveness is now coming in to play.
In the old days, there was a chief financial officer who was a big thing, now there is chief future officer, and sustainability officer, these things are good in a way because it will spread the fact that ESG is important. Sustainability, to that extent, has to be taken seriously where everybody is concerned, and the word should spread.
PBI: Based on your experience in investment management, what have been the most important developments in the last 5 years for sustainable finance?
Prabhakar Kaza: As far as the investors are concerned, they didn’t want you to invest in sustainable products. The main reason is if you invest in these products, the return is less. They wanted you to invest in things that give them higher return to maximise their wealth. Any company that invests more which has a higher metric value, gets a higher valuation.
PBI: What is Hamilton Reserve Bank role and strategy in facilitating sustainable finance?
Prabhakar Kaza: We only buy corporate soaring bonds.
But in terms of our charities, we plant trees, we fund in the Hamilton Museum, and we have national days, in all these activities and communities, we get involved.
PBI: What sustainability measures makes Hamilton Reserve Bank different from other investment banks?
Prabhakar Kaza: If you’re only talking about sustainability in terms of plans or climate or environment, its more social in nature.
Such as heroes’ days, or scholarships with colleges etc and when it comes to international days, we do more and give back to the community.
Overall, private banks are increasingly incorporating sustainability into the services they provide.
By accelerating the transition to a greener, more sustainable future, it enables them to finance the economy in an ethical manner, to grow and connect with their workforce in a responsible manner, and to be agents of positive change.
