Standard Chartered has helped clients with their money across its 170 year history, not only in its home market, but across the world. How does Standard Chartered maintain its reputation as a global, and local, bank?
Demir Avigdor, managing director, head of private banking UK, Standard Chartered, believes wealth is growing, not only in volume, but geographically. The wealthy are spreading their funds across the world and the bank needs to meet them where they are needed.
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PBI: What is Standard Chartered’s mission statement? You’re based in London but with a heavily international client base? What is the defining aspect of Standard Chartered?
Demir Avigdor: We’re a leading international wealth manager, with a world-class, diversified wealth management and cross-border banking proposition that serves the needs of affluent clients. We all know that we’re witnessing the most profound distribution of wealth, not only inter-generationally, but also across geographies.
The emerging markets, from predominantly Asia, Africa, Middle East, are growing much faster than in the West. The global wealth is shifting to those markets. With a presence in global wealth hubs (Hong Kong, Singapore, UAE, Jersey), we are perfectly positioned to capture growing wealth flows across our network. We are connecting our clients, either with each other or within the markets, or with our Corporate and Investment Banking arm, to meet their financial growth needs.
Why are people shifting to hubs like the Middle East and Africa?
The key answer here is that the emerging markets are growing much faster than the West. A recent report from the European Union showed that, in 1980 EU countries contributed 31% of the global GDP; and the US contributed 25%. Fast forward forty-five years and we note that the US portion is still 25%, but Europe’s portion is substantially reduced to 16%. So, where did the difference go? The portion of wealth being generated in Asia, Middle East and Africa is much bigger today in comparison.
There is far more wealth being created in Asia now; it is a major player in wealth generation. There is a flourishing generation of innovative entrepreneurs, especially in Singapore and Southeast Asia. Dubai has emerged successfully after the Covid-19 pandemic and the financial markets are registering record growth in the last two years.
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By GlobalDataAfrica is growing fast. I appreciate it is coming from a very low base, but when you look at the growth rates, the African growth rate is much faster than the growth rates in the West.
Our strategy here is to really focus on those markets, to connect our clients across our regions in Africa, Middle East and Asia. To facilitate this, we organise a number of annual events for our Family Office clients. These are not typical Family Office seminars, but akin to networking events to connect global families with like-minded families in other geographies.
London is still a key player; it is an international hub. A lot of clients are attracted to the London lifestyle. They send their children for education here. They buy investment properties here. It’s very well regulated as a financial centre. By having an Advisory Centre in each Dubai, London, Singapore and Hong Kong, we give our clients a seamless international experience. We think Wealth Management must be multi-jurisdictional now.
You’ve explained the benefits, but what are the challenges of being multi-jurisdictional?
Standard Chartered operates in more than 50 markets with varying legal systems. We are well accustomed to operating in many regulatory frameworks with different complexities. I don’t know of another bank that deals with the same complexity that we do in terms of the variety of markets we are present in.
That must be a strong differentiator?
It is a huge differentiator. That affinity that we gain from being present in those markets becomes a strength for us when we talk to clients looking for a Private Bank to meet their needs. The clients know that our network has been 170 years in the making. We understand those markets and we are able to help their businesses, as well as their families. We are present locally, supporting those businesses, as well as their families. We’re more than just investment advisers, but trusted confidants and friends. That is probably the biggest differentiator that I emphasise in client meetings.
Do you see the wealth shift continuing?
Yes, I do see wealth continuing to shift East. Productivity in Asia and the Middle East is remarkable. There is so much energy. In the West, Europe is facing some challenges in terms of demographics and GDP growth.
