The velocity of change in the Asian private banking industry is
faster than ever before, according to Jimmy Lee, who has more than
20 years of experience in the finance industry.
Lee, recently appointed head of Clariden Leu’s Asian business, said
one of the key growths in assets under management over the coming
years will be from liquidity events like IPOs and M&As; and
wealth deposited in local and regional banks.
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“The pace of development in the industry is getting quicker and
quicker,” Lee said. “Compliance and regulation are increasing and
costs are going up. The need to invest in systems and bankers are
growing and margins are being squeezed by ever-increasing
competition.
“Product complexity and sophistication has gone up in the last 10
years, together with evolving buying behaviour. Asia also remains a
relatively undiscovered market.
“Accordingly to McKinsey & Company, around two-third of all of
the wealth in the region has not been accessed by private bankers –
kept in deposits in regional banks, for example. This is a big pool
of potential clients which will signify plenty of growth in that
area.”
‘More integrated approach’
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By GlobalDataThere is also a shift from the traditional craft of private
banking, as high net worth clients look for service-centric wealth
management.
“It’s a more integrated approach,” Lee said. “You need to know the
markets and be more of an all rounder. It has moved from an
individual-based profession to a team-based one because of the
increased complexity of the products, and because things can change
so quickly.”
Technology has also played a big part role in the development of
the Asia-Pacific market, according to Lee.
He said in earlier jobs management was done more by instinct than
by numbers, but improvements in management information systems now
meant it was easier to keep up-to-date on the day-to-day
performance of the business.
Lee, whose Clariden Leu business in Asia focuses on wealthy clients
in the upper HNW segment, said the market was becoming more
competitive.
“If you have a 30-35 percent share of wallet with wealthy clients
in the upper HNW segment, a decent portfolio with tailored,
individual service can be built with which we can best provide
added value,” said Lee, who resigned from Deutsche Bank as head of
its southeast Asia operations to move to Clariden.
The key differentiator for private banks like Clariden Leu, he
said, remained its people. Lee said there were two conflicting
forces in the industry between a personal approach which attracted
customers, which he termed the ‘personal pull’ effect, and the
product pushing by banks, which he called the ‘institutional
push’.
“Products are commoditised today,” Lee added. “Client reporting,
statements and processing of transactions are very important, but
most banks are investing in those areas to ensure they have all the
customer touch points.”
“What really differentiates you is the people you have, so if you
focus on this build-up of high-integrity bankers, and that is the
‘personal pull’ we are looking for, to bring more and more clients
to Clariden Leu,” he added.
Lee believes that there will be a shift in the banking landscape as
the economy begins to recover.
“Clariden Leu is looking at selectively increasing its banking
expertise with regard to Singapore and other market areas such as
Greater China and South East Asia,” he said. “Bankers who have a
30-35 percent share of wallet with the majority of their clients,
are attractive recruitment targets for us.”
