GPB - Q3 2023 Issue

OPTIMISING PRIVATE CLIENT ENGAGEMENTS WITHIN TECHNOLOGYDRIVEN SERVICE MODELS

RISING INVESTOR CAUTION AND RISK CONSIDERATIONS GUIDE WEALTH PRESERVATION EFFORTS

RETHINKING THE ROLE OF PRIVATE ASSETS AS A RETURN ENHANCER IN WEALTH PORTFOLIOS

INNOVATIVE WOMEN IN PRIVATE BANKING

Foreword

In this edition of the Global Private Banker magazine, we are proud to share with our readers some of the most influential and impactful female leaders that are helping transform the private banking landscape and charting a new path forward for their respective institution, clients and teams. From investing in new platforms, augmenting existing capabilities and driving gender equity, the conventional business models that used to govern private wealth management are clearly being displaced.

Despite the post-pandemic economic headwinds and turbulence in financial markets, both private banking leaders and institutions have steadfastly worked towards insulating their clients and businesses through smart responses and deft initiatives that necessitated an unorthodox approach. Today private wealth relationships are being redefined not only through innovation in client engagement, formation of private markets and diversified multi-asset class portfolios, but through a concerted shift towards delivering institutional quality of service to private wealth clients.

Moreover, the effects of banking dislocation in key jurisdictions, uncertainty surrounding duration of policymaker response to combatting inflation, a prevailing high interest rate environment, and lingering geo-political risks continues to raise disquiet among market participants. Similarly, the enlargement of the existing BRICS grouping and emergence of a new economic bloc in form of the India-Middle East Economic Corridor announced at the G20 summit in New Delhi will likely reshape the contours of global investment and trade flows.

Certainly, whether there are any tactical investment opportunities to be realised remains to be seen, but clearly investors remain cautious and are prioritising wealth preservation to defend their exposures and minimise return volatility with balanced portfolios being the preferred option as articulated by Marc van de Walle, Standard Chartered Bank’s Global Head of Wealth Management.

It is within this backdrop that the Global Private Banker launched a CIO Investment Outlook Series, where prominent investment strategists, asset managers and fund specialists, share their insights for a more nuanced and informed assessment of key market developments. Our recent guests include Stefanie Holtze-Jen, Chief Investment Officer, Asia Pacific, Deutsche Bank Private Bank and Thomas Rupf, Head of the Investment Advisory & Treasury Asia, VP Bank (Singapore) and based on their views there are opportunities to be realised.

As Jerome Powell, Federal Reserve Chair, remarked recently, “we are navigating by the stars under cloudy skies”.

Innovative Women in Private Banking

This exclusive cohort of senior executives have a proven track record of delivering results and are empowering their teams to grow, thrive and evolve.

22

Maybank Private Singapore: South-East Asia’s Bright Star in Private Banking

In the realm of private banking, Maybank Private Singapore stands as an embodiment of resilience and innovation.

10

J.P. Morgan named World’s Best Private Bank by Global Private Banker

J.P. Morgan Private Bank retains leadership position adopting an integrated approach to deliver institutional-quality services.

25

Private Banking: Optimising Engagement in Tech-Driven Services

The timeless allure of private banking, known for its bespoke services and close-knit client relationships, is undergoing a radical transformation.

14

UBS-Credit Suisse Merger: The Aftermath

In the midst of a turbulent financial environment, the merging of UBS and Credit Suisse emerges as a noteworthy occurrence.

29

Breaking Barriers: J.P. Morgan

Private Bank’s Winning Strategy

Navigating an inherently turbulent financial landscape, J.P. Morgan Private Bank has resolutely upheld its standing as a cornerstone within the industry.

18

additiv: Pioneering the Next Frontier in Wealth Management

Since its inception, additiv’s Orchestrated Finance Platform has been the key element in its recent client successes.

33

BNL BNP Paribas: Banking Innovation Unleashed

BNL BNP Paribas Private Banking & Wealth Management, leveraging on the expertise of BNP Paribas Group, has set itself apart with the unique ONE BANK FOR ENTREPRENEURS AND FAMILIES model.

36

Navigating Global Wealth’s Future Dynamics

In the world of finance, the shifting sands of global wealth are a constant study of adaptation and strategy.

46

Inclusive Investment and the Future of Private Markets

While the pandemic disrupted many sectors, public markets faced notable volatility. In comparison, private markets stood firm, bouncing back rapidly after a temporary slowdown in early 2020.

40

Crafting Excellence: Wealth Management at Fifth Third Private Bank

Fifth Third Private Bank is more than just a regional wealth management firm; it is a symbol of trust and a beacon of innovation with strong community roots and a national reach.

43

Marrying Tradition and Digital Innovation: SGPB’s Unique Approach

SGPB’s renowned expertise in wealth planning, structured products, and complex loans places it at the forefront of the industry.

49

Nuvama Private: Powering wealth growth through targeted strategies and optimised technologies

Nuvama Private, the UHNI arm of Nuvama Group, has emerged as one of the fastest-growing private wealth players in India.

52

Exclusive Interview with Marc Van de Walle of Standard Chartered Bank

Van de Walle, Global Head, Wealth Management, Deposits and Mortgages: A balanced asset allocation is still the best way investors can prepare themselves for any uncertainty.

INNOVATIVE WOMEN IN PRIVATE BANKING

FEATURE ARTICLE

This year’s edition of Global Private Banker is pleased to recognise four female private banking leaders whose expertise, calibre and vision truly distinguishes them as champions of industry that have successfully spearheaded the expansion of private wealth businesses under their remit. Read more >>

As part of its annual Global Private Banking Innovation Awards program (under its People Awards stream), Global Private Banker conducts an extensive assessment of leaders across the private banking landscape. It is intended to recognise those individuals that are making unique contributions to both the institutions they are heading, while also positively contributing in terms of innovation and change in private wealth management.

Importantly, this exclusive cohort of senior executives have a proven and well-established track record of delivering results and are empowering their teams to grow, thrive and evolve as needed to changing market dynamics and wider strategic shifts. Clearly, these achievements are demonstrated in institutional business performance, operational efficiency and employee productivity backed by ground-breaking initiatives.

Indeed, in this year’s edition, Global Private Banker is pleased to recognise four female private banking leaders whose expertise, calibre and vision truly distinguishes them as champions of industry that have successfully spearheaded the expansion of private wealth businesses under their remit.

Katy Knox: Leading from the front in facilitating key outcomes

The first honouree is Katy Knox, who as President, Bank of America Private Bank, leads a 4,000 + team servicing a broad range of high-net worth clients encompassing families managing multi-generational wealth, business owners, entrepreneurs and other wealth creators. With over 35 years of financial services industry experience, Knox has held numerous leadership positions across a variety of client segments at Bank of America and has developed a deep understanding of clients’ strategic needs across various stages of life and career.

Importantly, Knox spearheaded the expansion of the number of advisors and core client team members by 75, increased client balances to $564 billion and added 2,600 net new relationships in 2022. This was accomplished through strengthening of partnerships with other lines of business across the Bank to serve a wide range of needs.

Furthermore, Knox’s modernisation efforts of the Private Bank have enabled digital engagement levels to reach a record 86% by yearend 2022, with clients actively using the Private Bank’s digital platforms. Certainly, the Private

Bank leveraged new technologies to augment a fully integrated and tailored client experience as digital enhancements such as expanded e-signature capabilities and digital wire transfers facilitate client interactions and transactions.

Knox has been instrumental building the ongoing momentum at Bank of America Private Bank through investments in platform, people and capabilities. Recognising Knox’s efforts in driving this growth she has been awarded “CEO of the Year in North America” at the recently concluded Global Private Banking Innovation Awards 2023 program.

KATY KNOX Bank of America Private Bank

Kam Shing Kwang: Fostering business expansion and embracing diversity

Our next honouree is Kam Shing Kwang, Chief Executive Officer of J.P. Morgan Private Bank in Asia, Vice Chair of Investment Banking for Greater China and member of the J.P. Morgan Asia Pacific Management Committee. Impressively, Kwang has over 30 years of experience in financial services, across private banking, asset management and investment banking along with deep knowledge of Asian markets.

Since joining J.P. Morgan in 1998, she has played a key role in facilitating partnerships across various lines of business strengthening the firm’s ability to service clients’ corporate balance sheet and personal wealth needs. In now her 7th year as CEO,

she has achieved key milestones including overseeing consistent YOY business revenue and total client portfolio growth, while also more than doubling the client advisor team.

Kwang has been equally passionate about encouraging diversity and equity at the workplace and in conjunction with J.P. Morgan’s “Women On The Move initiative”, she helped launch the firm’s inaugural APAC Top 100 Women-Powered, High-Growth Business report, which reveals how women in the region remain underrepresented in senior leadership positions.

Separately, Kwang helped put together a first ever “The Women’s Forum” in March, 2022 in Hong Kong. The event brought together a community of investors, business owners, leaders and allies to lend J.P. Morgan’s voice in supporting the financial well-being and opportunities for advancement of women across Asia Pacific.

Certainly, Kwang remains a trusted advisor for the industry, having served on Hong Kong’s Banking Advisory Committee between 2016 to 2018. Affirming her professional achievements, while at the helm of J.P. Morgan Private Bank in Asia, Kam Shing Kwang has been recognised as the “CEO of the Year in Asia” and for “Outstanding Achievement by CEO of a Private

Bank” at the recently concluded Global Private Banking Innovation Awards 2023 program.

Natalie Irvine: Orchestrating success for clients, staff and the bank

Another leading private banker and honouree is Natalie Irvine, who is Head of Private Wealth South Australia, Private Client Executive at NAB Private Wealth and also co-leads the national healthcare professional’s specialist segment in Private Wealth. Irvine has demonstrated exceptional competence particularly for ensuring more personalised service as evidenced in through the outstanding NPS Team Relationship score of +65 recorded by her team in 2022.

Importantly, Irvine’s team produced double digit growth on both sides of the balance sheet with revenues growing at 30%, deposits rising by 20% and business and home lending increasing by 20% in 2022. Impressively, both deposit and home lending books grew at over twice the market growth rate despite the prevailing high interest rate environment.

Likewise, Irvine has delivered top quartile employee satisfaction (eSAT) scores of 80 for her team

KAM SHING KWANG J.P. Morgan Private Bank

over the last 3 years. Reinforcing the Private Wealth’s capabilities, she co-founded the “1500 Degree” talent program in 2022, with a stated objective to fast-track women to senior management roles, 10 of the original 15 participants having already moved in to leadership roles. Similarly, Irvine is committed to investing in Private Wealth’s frontline staff, particularly female team members and her input has been integral to the design and implementation of NAB’s female focused Individual Development Plan delivering outstanding results. Validating Irvine’s successes in enabling positive outcomes for all key stakeholders she has been awarded “Female Private Banker of the Year” at the recently concluded Global Private Banking Innovation Awards 2023 program.

Cheuk Wan Fan: Constructing new multi-asset investment opportunities and developing diversified portfolios

Rounding up the list of special mentions is our final honouree, Cheuk Wan Fan, Managing Director, Chief Investment Officer (CIO) Asia, HSBC Global Private Banking and Wealth. Fan has successfully spearheaded the Bank’s multi-asset investment strategies and high conviction themes across all asset classes for clients in the region. These are built on best-in-class market analysis and value-adding strategies to help clients build robust and diversified portfolios.

Importantly, Fan has 27 years of experience in portfolio strategy, asset allocation, equity analysis, investment advisory and research management along with in-depth knowledge of the Asia Pacific and Greater China markets. She initially joined HSBC Global Private Banking in 2016 as Head of Investment Strategy for Asia and later assumed the role of Chief Market Strategist, Asia for Private Banking before being elevated as CIO Asia.

Fan has been effective in driving product solution ideas while also generating and delivering holistic end-to-end contentbased investment advisory, which

has facilitated net new money acquisition and revenue growth for the Private Bank. In 2022, the Private Bank’s asset composition continued to grow across product classes, with $174 billion of client assets being managed in Asia.

As a member of the Global Investment Committee and Chair of Regional Investment Committee in Asia, she is also responsible for making investment decisions on tactical asset allocation for advisory portfolios of private banking clients. Validating Fan’s achievements in delivering superior investment advisory for private clients she has been awarded “CIO of the Year in Asia” at the recently concluded Global Private Banking Innovation Awards 2023 program.

NATALIE IRVINE NAB Private Wealth

CHEUK WAN FAN

HSBC Global Private Banking

J.P. MORGAN NAMED WORLD’S BEST PRIVATE BANK BY GLOBAL PRIVATE BANKER

J.P. Morgan Private Bank retains leadership position adopting an integrated approach to deliver institutional-quality services

For a third straight year, J.P. Morgan Private Bank is recognised as the Best Private Bank – Overall at the Global Private Banking Innovation Awards 2023.

Global Private Banker evaluates the Best Private Banks at a global, regional and country-level based on unique achievements and business excellence of participating institutions for the period under review. This is documented by those private banks that have demonstrated effective private wealth propositions reinforced through strong financial performance and exceptional client experience powered by digital innovation. Winning private banks led by J.P. Morgan Private Bank possess the requisite operational footprint, technological capabilities and depth of expertise to service the unique long-term needs of its clients.

Financial Performance: maintaining sustainable competitive advantage

JPMorgan’s Private Bank has continued its strong financial performance track record in 2022 with global segment revenues increasing by 16% year-on-year to USD $8.9 billion driven by margin expansion realised due to higher rates. Furthermore, the Private Bank’s pre-tax margin ratio remained at a stable 35% despite lingering adverse operating conditions with slower economic growth, rising interest rates and higher inflation constraining opportunities. The Private Bank has strategically reinforced its advisory capabilities by expanding its private banking bench strength with total number of client advisors increasing by 15% to 3,137.

The Private Bank has constituted an integrated team model framework to consolidate its long-term relationships with clients and ensure a more holistic and consistent client experience. With clients having direct access to a team of specialised advisors, its ratio of clients per advisor remains at 12:1. Importantly, the Private Banking segment’s total client assets steadily rose to USD $1.964 trillion in 2022 from USD $1.931 trillion in 2021. Assets under management marginally fell to USD $751 billion from USD $805 billion in 2021, attributed due to lower market valuations although this was partially offset by client flows to long-term products. In comparison, fellow peer Bank of America Private Bank recorded a decrease in client balances to USD $563 billion in 2022 from USD $625 billion in 2021 facing a similar set of challenges, while posting a 9.5% year-on-year increase in total revenue.

Client experience: leveraging synergies to drive value creation

Given the Private Bank’s ongoing relationship with 50% of the world’s deca-billionaires (excess of USD $10 billion) client advisors are fully empowered to address the institutional and corporate needs of clients

facilitating transaction services encompassing equity capital markets, debt capital markets and mergers & acquisitions. In particular, the value generated through “23 Wall” global platform that facilitates crosspartnership between the Private Bank and Investment Bank teams has been instrumental in providing clients with direct access to capital, deal flow and links to private transactions. The platform is currently engaging with 500 plus families and principals, with USD $3 trillion in private family capital being serviced across Asia-Pacific, Europe, Middle East & Africa and The Americas.

Likewise, the Private Bank’s lending specialists are prudently supporting client liquidity requirements through unique lending solutions that include single stock lending, super voting share classes and specialty lending to financial sponsors. Similarly, in 2022 the Philanthropy Centre conducted 64 events across 24 markets to bring clients, NGO partners and subject matter experts to jointly focus on formulating philanthropic legacies for clients as a means for using charitable contributions with purpose and impact.

Similarly, following the acquisition of Campbell Global, the Private Bank is offering clients Campbell Global Forest & Climate Solutions II that partly derives returns from the issuance of voluntary carbon offsets. Meanwhile, the Sustainable Investment (SI) team’s 120 plus strategy offerings covering equities, fixed income and alternatives stands at USD $15.9 billion of assets under management as of September 30th 2022. This is relatively smaller when compared with Swiss-based UBS whose sustainability-focused and impact investing assets are perched at USD $178 billion.

Innovation: Equity-led solutions facilitate growth amid market uncertainty

A key highlight for the Private Bank in 2022 has been its global research platform that is facilitating client access to investment research across all asset classes particularly for equities. The institutional-level quality of resources accessible to clients in the form of the Investment Bank research portal, research experts, webinars, company roadshows, and flagship global events is significant in consolidating client relationships. The Private Bank and Investment Bank collaboration deftly enables equity block trades (including ECM placement), cross trades, desk trades and open market trades.

Moreover, maintaining active communication both internally and with clients during periods of adverse market movements has proven to be exceptionally impactful as client advisors are provided with timely equity alerts while 125 plus internal huddles were conducted to offer context to client advisors on trade recommendations. Externally, more than 450 client meetings, custom portfolio reviews and seminars/ webinars were conducted to guide clients appropriately on making relevant portfolio adjustments. Importantly, core client holdings are reviewed using holding-based analysis coupled, with contrarian bearish calls disseminated as needed to avoid portfolio value deterioration; instances where double-digit alpha return in 2022 were also captured.

The Global Equity Team provides local expertise on the stock picking process enabling clients to access

insightful global equity and thematic investment ideas. Indeed, all equity recommendations are tracked and published in the Monthly Review offering clients with much needed transparency on performance evaluation. Consider, 80% of equity recommendation lists outperforming their respective benchmarks in Asia, while equity structured notes revenue recorded a robust 50% year-on-year growth in the second half of 2022 accounting for half of equity-related revenue. Furthermore, the Private Bank has gradually improved its equity derivative margin at 0.35% in March-2023 from 0.25% in June-2022 through optimised product sets, while maintaining cash equity trading margins at around 0.22% during the same period despite competitive pressures.

About

The Global Private Banking Innovation Awards 2023, organised by Global Private Banker, exists to identify, honour, and celebrate the world’s preeminent Private Banks, Family Offices and Wealth Managers that demonstrate elite levels of advisory, unbiased research and bespoke solutions, together with their distinguished individuals’ contribution to client service. Global Private Banker Awards are accolades of excellence and distinction, attributed to outstanding players; and provide unbiased and objective benchmarks for the global wealth industry. The GPB Awards is the world’s most authoritative and transparently judged awards program, and received more than 150 entries from 50 plus participating institutions during the 2023 awards cycle.

UBS-CREDIT SUISSE MERGER: THE AFTERMATH

FEATURE ARTICLE

In an age valuing financial steadiness, the merger of two banking titans – UBS and Credit Suisse – has sent ripples across the global banking landscape. This consolidation is not just a testament to the ever-evolving financial sector but also a strategic manoeuvre to salvage a banking institution from potential collapse.

In the midst of a turbulent financial environment, the merging of UBS and Credit Suisse emerges as a noteworthy occurrence. The impetus behind this unprecedented consolidation stemmed from a dire need to prevent a potential financial catastrophe. Credit Suisse, grappling with its dwindling fortunes, was plagued by a staggering loss of customer deposits, a figure that touched a concerning $75 billion in the first quarter of 2023, or 29% of the total at the end of the previous year, as reported by Reuters. The bank’s assets under management also witnessed a substantial fall by $69 billion during the same period, equivalent to 5% of the previous total1. Amidst this chaos, Swiss authorities intervened, fusing Credit Suisse with UBS in a deal valued at approximately 3 billion Swiss francs2, a move that was more of a rescue mission than a mere merger.

The Blueprint for the Future

The proposed restructuring plan is intricate and speaks of UBS’s ambition. UBS, in its bid to be a global powerhouse, has the objective of plugging gaps in its capabilities. While hundreds of Credit Suisse bankers had chosen to abandon ship, particularly after Swiss authorities intervened to prevent a chaotic downfall,

UBS has been tactical in retaining key personnel, especially those specialising in healthcare, consumer, and industrials.

The wealth-management business of Credit Suisse is the crown jewel for Sergio Ermotti, UBS’s chief executive officer. Harnessing this sector could translate into an increase in assets under management for UBS equivalent to over seven years’ worth of organic growth, as highlighted by The Washington Post3

Implications for the Unified Private Banking Teams

The merger has pronounced implications for the consolidated UBS/Credit Suisse private banking teams. UBS has shown keen interest in retaining the majority of Credit

Suisse’s private bankers, especially in the Asia Pacific region. The bank’s strategy is to bring the total number of private bankers in this region to more than 1200, and this merger is a definitive step towards that goal. With Credit Suisse historically being a dominant player in Southeast Asia, UBS’s stronghold in China and Australia will complement and fortify the private banking team’s position. However, challenges abound. Several top-performing bankers from Credit Suisse have been enticed by competitors, leaving gaps that UBS will need to address. Ensuring the smooth transition of clients and retaining their trust will be paramount.

Integrating Investment and Private Banking with Strengthened Risk Controls

The merger brings to the fore the opportunity for a seamless integration of investment banking and private banking services. UBS seeks to leverage Credit Suisse’s electronic trading specialists, including quants, technologists, and salespeople, aiming to integrate these platforms into UBS’s systems.

However, the journey won’t be without its share of hurdles. The traditional warfare that ensues post

It is evident that the merger between UBS and Credit Suisse goes beyond mere consolidation. It represents a strategic decision and a forward-thinking vision.

such bank mergers is expected to be less tumultuous this time around, given UBS’s strategic approach of handpicking the assets and personnel it wants, whilst discarding redundant technology and systems. This might make the integration smoother, but it could potentially elongate the time UBS takes to achieve the desired revenue from Credit Suisse’s portfolio.

Moreover, the merger comes with a renewed focus on risk controls. The Archegos Capital Management scandal that cost Credit Suisse a loss of $5.5 billion in 2021 is a stark reminder of the importance of rigorous risk management. UBS, with its enhanced capabilities post the merger, is poised to usher in stringent risk controls to prevent such debacles in the future.

It is evident that the merger between UBS and Credit Suisse goes beyond mere consolidation. It represents a strategic decision and a forwardthinking vision. The banking industry eagerly awaits the outcome of this merger, as it could potentially establish a model for future consolidations in a complex financial environment that poses numerous challenges.

The merger brings to the fore the opportunity for a seamless integration of investment banking and private banking services.

Chief Investment Officer Asia Pacific Deutsche Bank Private Bank

COME JOIN OUR PODCASTS

In the inaugural CIO Investment Outlook Series, we interview Stefanie Holtze-Jen to ascertain her views on the Fed’s decision to hold policy at a restrictive level and outcome of the recent BRICS Summit that saw inclusion of new member states. China’s ongoing capital market policy reforms and its attempt to arrest declining growth, outlook on sustainable investing and crypto-assets are also discussed.

In the inaugural Transaction Banking Series, we speak with Aziz Parvez and review the ongoing trend in automation of key treasury functions. We ascertain Aziz’s take on the importance of “On-Time Treasury” as well as steps needed by corporate and institutional treasures to prepare and manage liquidity more effectively as well as evaluate if real-time is truly needed by all entities.

STEFANIE HOLTZE-JEN

AZIZ PARVEZ Head of Corporate Treasury Sales, Asia Pacific Global Transaction Services Bank of America

ADDITIV: PIONEERING THE NEXT FRONTIER IN WEALTH MANAGEMENT

FEATURE ARTICLE

Since its inception, additiv’s Orchestrated Finance Platform has been the key element in its recent client successes. The platform automates the configuration, management, and interoperability of disparate systems, applications, and services, creating unique, end-to-end client experience for the user. By utilising additiv’s platform, financial or non-financial brands can access wealth, insurance and credit solution creating unique value propositions. Read more >>

Innovative and exceptional

As the financial services landscape evolves, additiv stands at the pinnacle of innovation and exceptional service. The firm recently secured the accolade of Best Investment Management Platform for a Private Bank/ Family Office/Wealth Manager at the esteemed Global Private Banking Innovation Awards 2023, organised by The Digital Banker. This recognition is a testament to additiv’s forward-thinking strategy, leveraging cutting-edge technology to reimagine the provision and consumption of financial services.

Nirav Patel, Managing Director of Global Private Banker and The Digital Banker, extolled additiv’s triumph. He said, “additiv’s unique Orchestrated Finance Platform epitomises business model transformation, showcasing how technology solves for the needs of the wealth management industry, making it a truly deserving recipient of this award.”

Paradigm shift in WM APAC

In a world where the middle-class population in the Asia Pacific region is forecast to increase by 73% (to 3.5 billion) by 2030, there is a paradigm shift underway in

wealth management. The affluent demographic is not only growing but also becoming younger and more digitally savvy, requiring financial institutions to reimagine their strategies. In response to these evolving trends, the Swiss fintech firm additiv is revolutionising the landscape with its Orchestrated Finance Platform, specifically designed to help private banks, family offices, and wealth managers capture this business opportunity.

Pieter Zystra, General Manager for additiv APAC, notes, “The future of wealth management necessitates a shift from traditional auxiliary services to a truly customercentric approach.”

As additiv’s proprietary consumer survey found 64% of Asian consumers would switch their bank if they perceive a

competitors’ offer as more innovative. And 68% prefer to take investment services by a nonfinancial brand.

Business model transformation key to meet clients’ expectations

Business model transformation involves the strategic integration of a variety of financial products and services, all delivered through powerful orchestration platforms. By leveraging APIs, these platforms act as a conduit between regulated assets (BaaS, IaaS, investment products) on the supply side and embedded finance on the demand side. This seamless integration creates an ecosystem where banking converges with everyday life and large opportunities arise for the ones positioned.

Swiss Fintech firm, additiv, has harnessed this concept with their Orchestrated Finance Platform, leading to impressive growth. Boasting a compound annual growth rate (CAGR) of over 50%, and servicing clients across more than 20 countries spanning the Asia Pacific, Middle East and Europe, their platform stands out. It not only empowers financial institutions to deliver personalised

wealth and investment services but also facilitates any other brand to replicate and innovate across diverse products and services.

Supercharging advisors

In contrast to many WealthTech companies that solely focus on digitising certain customer experiences, additiv takes a broader

perspective. It seeks to empower advisors and catalyse business model changes, providing tools that enable the delivery of personalised advice, whether in-person or through hybrid models.

This comprehensive strategy results in a platform that caters to a varied clientele. From tech-savvy millennials yearning for a seamless, digital-first approach to wealth

The future of wealth management demands a departure from traditional auxiliary services, towards a truly customer-centric approach.

- Pieter Zylstra, General Manager APAC -

management to high-net-worth individuals seeking personalised, human-centric service. With its orchestrated wealth approach, additiv is poised to revolutionise the finance industry and our interaction with financial services.

A true embedded finance champion

To further expand its reach, additiv leverages embedded finance, a strategy that dramatically boosts financial inclusion. By integrating financial solutions into existing

customer interaction channels, embedded finance reduces customer acquisition costs, offering relevant services in-context to meet customer needs effectively.

This strategy exemplifies additiv’s commitment to serving a diverse client base with innovative, user centric solutions.

additiv’s offer has already gone beyond traditional wealth management brands, including financial super-apps, insurers, pension providers, asset managers and retail consumer platforms.

For advisor business they are innovating with seamless Artificial Intelligence solutions. Their Advisor Copilot supercharges any advisor, by enabling them to have all the related knowledge at their fingertips. Built in a data-controlled environment and fully auditable it is a must for any financial active in the investment advice business.

With such ambitious plans, additiv is well-positioned to continue leading transformation of the financial services landscape, harnessing the power of technology to drive innovation in wealth management.

MAYBANK PRIVATE SINGAPORE: SOUTHEAST ASIA’S BRIGHT STAR IN PRIVATE BANKING

FEATURE ARTICLE

Maybank Private Singapore’s exceptional performance, innovative growth strategies, dedicated personnel, and commitment to sustainability and customer satisfaction define its position as the Best Private Bank in South-East Asia. With its forward-thinking strategies and an unwavering commitment to excellence, Maybank is set to redefine the contours of private banking in the region and indeed, globally. Read more >>

Maybank Private Singapore is focused on delivering highly personalised services to our customers, and developing solutions to meet their ever-changing needs. Central to our success is our people and their outstanding commitment to deliver their best.

In the realm of private banking, Maybank Private Singapore stands as an embodiment of resilience and innovation. Its consistent performance in catering to highnet-worth clientele has earned it a commendable reputation in the financial sector. Recently, this esteemed institution outshone its peers by winning a plethora of awards at the Global Private Banking Innovation Awards 2023. Garnering accolades such as the Best Private Bank – South-East Asia, Outstanding Private Bank for Growth Strategy, Best Young Private Banker, and RM of the Year – Private Bank, Maybank Private Singapore has cemented its leadership in the South-East Asia private banking space.

Nirav Patel, Managing Director of Global Private Banker and The Digital Banker, lauded Maybank Private Singapore’s extraordinary achievements, attributing their success to the bank’s robust

growth strategy, innovative talent management, and unwavering customer commitment.

The bank’s impressive growth strategy, honoured as Outstanding Private Bank for Growth Strategy at the awards, has been pivotal in its success story. With a footprint spanning all 10 ASEAN countries, Maybank Private launched its private banking platform in 2013, marking a key step towards its aspiration of joining the top 20 Wealth Management players in the AsiaPacific region.

Fostering Talent and Pioneering Islamic Banking

Maybank stands apart with its forward-thinking approach to talent management. In a strategic partnership with Nanyang Technological University’s Wealth

Management Institute, Maybank established the Maybank Wealth Management Academy in 2018. This ground-breaking institution focuses on the holistic development of over 1,500 sales staff across eight global markets. Paired with a unique ‘Generation Buckets’ system for relationship manager progression, these initiatives have led to a considerable 354% increase in productivity.

Maybank Private also stands as a front-runner in Islamic Banking. With the largest Islamic Bank in ASEAN, Malaysia, and ranking fifth globally, it has established itself as an undisputed leader in Islamic Wealth Management. Its unique Shariahcompliant offerings, outstanding customer service, and robust digital distribution set a high benchmark in this niche banking sector.

Two individuals who truly embody Maybank’s commitment to excellence

We continue to forge ahead and reach new heights, while remaining true to our mission of Humanising Financial Services.

- Alice Tan, Head Maybank Private Singapore -

are Farley Yu Chin Hon and Angeline Ong See Ling. Chin Hon, the recipient of the Best Young Private Banker award, joined Maybank in August 2016 and swiftly ascended the career ladder and moved to Maybank Private as a Relationship Manager. His consistent track record of AUM growth and a string of awards bear testimony to his exemplary performance and unwavering commitment to the bank.

Likewise, Angeline Ong See Ling, the Relationship Manager of the Year awardee, has been a driver of progress since she joined Maybank in 2006. Today, she successfully manages a clientele base with a total AUM of S$400 million. Her status as a consistent top-five revenue achiever since 2019 reflects her dedication, customer-focus and her alignment with Maybank’s mission of Humanising Financial Services.

Sustainability and Innovation at the Core

Maybank’s commitment to sustainability and innovative technology sets it apart from its peers. It plans to mobilise RM80 billion in Sustainable Finance by 2025, a testament to its vision. It has integrated ESG criteria into its operations, demonstrating its understanding of the significant role financial institutions play in tackling

global sustainability challenges.

Maybank’s innovative approach extends to digital banking, with tools like the Avaloq banking system that greatly enhances the wealth management experience. These technological innovations, along with customer-centric initiatives such as the 2021-launched #ForYou campaign, serve to humanise financial services and elevate Maybank’s brand value.

Maybank Private Singapore’s exceptional performance, innovative growth strategies, dedicated personnel, and commitment to sustainability and customer satisfaction define its position as the Best Private Bank in South-East Asia. With its forward-thinking strategies and an unwavering commitment to excellence, Maybank is set to redefine the contours of private banking in the region and indeed, globally.

PRIVATE BANKING: OPTIMISING ENGAGEMENT IN TECH-DRIVEN SERVICES

Historically, high net worth individuals (HNWI) cherished the ethos of private banking, marked by attention to detail and unparalleled exclusivity. They sought institutions that prioritised them, treated their wealth with meticulous care, and offered solutions that matched their unique financial needs. Fast forward to our digital age, and this landscape has seen a profound shift. The modern HNWI is an amalgamation of tradition and tech-savviness. Their expectations have transformed from mere personalised services to contextually tailored solutions. They yearn for real-time responses, instant feedback, and a blend of human and technological interactions. Read more >>

The timeless allure of private banking, known for its bespoke services and close-knit client relationships, is undergoing a radical transformation. Europe, with its historic banking bastions, stands at the epicentre of this transformation. As the waves of digital evolution crash against the sturdy walls of tradition, the private banking sector finds itself at a crossroads. With this backdrop, we delve into the shifting sands of private banking in Europe, the evolving nature of client engagements, the burgeoning role of artificial intelligence, and the quintessential challenge of preserving the human touch in a rapidly digitising world.

Redefining Private Banking in Europe

Private banking, for long, has been the bedrock of personalised financial services. Europe has a long history of banking and has traditionally been responsible for

preserving this heritage. However, the current times are bringing about changes in this regard. Today, the continent is grappling with multiple transitions: spearheading a sustainable financial future, upholding a reliable political and legislative landscape, and, most prominently, navigating the fast-paced currents of the digital revolution.

European private banks are prioritising innovation to ensure resilience in the face of uncertain times, according to a recent article titled “European Private Banking: Resilient Models for Uncertain Times” by McKinsey. The article highlights that “banks plan to triple technology spend from 2 percent of total revenues in 2019 to 6 percent in 20231 emphasising their commitment to innovation and digital transformation. Additionally, private banks’ operating models have undergone a steady evolution through “a push for scalability to achieve overall

cost reductions from 2017 through 2021—a cumulative 0.8 percent in the mid-office and 2.0 percent in the back office2.” These statistics underscore the importance of innovation in the private banking sector and the recognition among European private banks of the need to embrace technological advancements and strategic partnerships to maintain their competitive edge.

The onset of the Coronavirus pandemic acted as a catalyst, emphasising the need for a more adaptive banking environment, particularly teleworking and digital client interfaces. However, the move towards this ‘phygital’ environment, a blend of the physical and digital, began much earlier, targeting the NextGen clientele and newer asset classes like private equity and cryptocurrencies. This emerging model requires the fine-tuning of the age-old banking apparatus, ensuring that while high-tech tools are deployed, the essence of human trust isn’t eroded.

As technology gallops forward, private banks find themselves in a race against time, needing to swiftly integrate the newest digital tools.

Emerging Client Dynamics and Product Portfolios

Historically, high net worth individuals (HNWI) cherished the ethos of private banking, marked by attention to detail and unparalleled exclusivity. They sought institutions that prioritised them, treated their wealth with meticulous care, and offered solutions that matched

their unique financial needs. Fast forward to our digital age, and this landscape has seen a profound shift. The modern HNWI is an amalgamation of tradition and tech-savviness. Their expectations have transformed from mere personalised services to contextually tailored solutions. They yearn for real-time responses, instant feedback, and a blend of human and technological interactions.

Addressing this evolved clientele’s aspirations, banks are now on the cusp of a technological renaissance. They’re integrating extended reality tools that offer real-time virtual trading experiences, fusing the world of finance with that of virtual immediacy. Add to this, AIempowered solutions and instantaneous account insights, and the modern HNWI has a suite of services at their fingertips

that not only secures their wealth but also enriches their banking experience.

However, with this increased wealth concentration, a new challenge has emerged. The HNWI demographic is expanding, and with it grows the demand for seasoned wealth managers. Yet, there’s a glaring scarcity. This deficit is more than just about numbers; it’s about expertise, about individuals who not only understand the intricacies of vast wealth but also the ever-evolving technological realm. To bridge this gap, AI has entered the fray. Advanced algorithms now steer intelligent customer engagements, offering precise investment solutions, answering client queries in realtime, and continuously refining the transactional experience to mirror the expectations of today’s affluent individuals.

Similarly, the very essence of banking portfolios is undergoing a metamorphosis. As technology gallops forward, private banks find themselves in a race against time, needing to swiftly integrate the newest digital tools. However, this isn’t just a technological race.

It’s a cultural one. The chosen technologies must harmonise with the bank’s long-standing ethos, ensuring that while digital strides are made, the foundational pillars of trust and relationship remain unshaken.

Amidst this digital whirlwind, one thing stands clear: the transformation isn’t just about assimilating new asset classes. It’s far more profound. It’s about recalibrating age-old processes, about infusing them with agility and foresight, ensuring that at every juncture, the bank empowers its HNWIs, allowing them the autonomy to make informed decisions, backed by a perfect blend of human expertise and digital excellence.

AI: The Confluence of Tradition and Technology

AI’s influence on private banking is monumental. With an arsenal of real-time advisory tools, it integrates vast data reservoirs—be it historical patterns, real-time market nuances, intricate client portfolios, or myriad investment

trajectories—to herald financially sound futures, all the while minimising associated risks.

However, AI’s magic doesn’t end there. It is its nuanced ability to strike a balance that stands out. Robo-advisors, automated workflows, and cost-reducing strategies streamline operations. Simultaneously, AI analytics, with their proactive and bespoke recommendations, facilitate agile, informed decision-making.

But here’s the catch. Even with an escalating digital momentum, tomorrow’s private banks carry a clear mandate: technology should augment human endeavours, not supplant them.

Trust, the cornerstone of banking, remains undeterred. Even as technology permeates every facet, values of authenticity, transparency, and reliability stand tall. In essence, while AI delineates the future of wealth management, the industry’s heartbeat remains unwavering: irrespective of technological leaps, the human touch, underpinned by trust and bespoke service, will forever be the nucleus of private banking.

1 – McKinsey: European private banking: Resilient models for uncertain times 2 – Ibid.

BREAKING BARRIERS: J.P. MORGAN PRIVATE BANK’S WINNING STRATEGY

FEATURE ARTICLE

Navigating an inherently turbulent financial landscape, J.P. Morgan Private Bank has resolutely upheld its standing as a cornerstone within the industry. The strength of its balance sheet, fortified by unwavering business performance and consistent annual growth, attests to its enduring resilience. Spearheading this success is Kam Shing Kwang, the Asia Chief Executive Officer of J.P. Morgan Private Bank, whose strategic acumen and aptitude for cultivating cross-functional synergies across a multitude of sectors – encompassing private banking, asset management, and investment banking – has been instrumental in bolstering the bank’s pronounced growth trajectory within the region. Read more >>

In the dynamic and multifaceted landscape of global finance, J.P. Morgan Private Bank continues to set a sterling example, distinguished once again with an array of prestigious accolades at the Global Private Banking Innovation Awards 2023, organised by The Digital Banker. The bank’s impressive trophy haul this year comprised numerous recognitions, including Best Private Bank – Singapore, World’s Best Private Bank, Best Private Bank for Alternative Investments, Best Private Bank for Equities, Outstanding Estate Planning Advisory, and Outstanding

Achievement by CEO of a Private Bank. The pinnacle of this recognition was the CEO of the Year, Asia, an honour conferred upon Kam Shing Kwang for her exceptional, forward-thinking leadership.

Nirav Patel, Managing Director of Global Private Baker and The Digital Banker, provided insight into this landmark achievement. He praised, “J.P. Morgan Private Bank’s unwavering commitment to innovation, combined with its robust Integrated Team Model, has set new benchmarks in client servicing. Kam Shing Kwang’s visionary leadership has been instrumental in carving a strong, dependable balance sheet for the bank, bolstered by consistent year-on-year growth and a

profound commitment to diversity and sustainability.”

Leading with Distinction: Kam Shing Kwang’s Innovative Vision

Navigating an inherently turbulent financial landscape, J.P. Morgan Private Bank has resolutely upheld its standing as a cornerstone within the industry. The strength of its balance sheet, fortified by unwavering business performance and consistent annual growth, attests to its enduring resilience. Spearheading this success is Kam Shing Kwang, the Asia Chief Executive Officer of J.P. Morgan

Private Bank, whose strategic acumen and aptitude for cultivating cross-functional synergies across a multitude of sectors – encompassing private banking, asset management, and investment banking – has been instrumental in bolstering the bank’s pronounced growth trajectory within the region.

With 30+ years of experience in financial services, across private banking, asset management and investment banking, Ms. Kwang in her 7th year as CEO has achieved key milestones including overseeing consistent YOY business revenue and total client portfolio growth, doubling the client advisor team, while

also establishing a track-record of delivering results and inspiring high performance.

An essential cog in the bank’s operations is its innovative Integrated Team Model (ITM). This model, which ensures a tailored 12:1 ratio of clients per advisor, allows the bank’s team to focus intensively on the intricate needs of their high-net-worth clients. This personalised approach empowers them to offer more than mere transactional services, but rather a strategic partnership that aligns with the unique needs and financial goals of each client.

Moreover, the bank’s unyielding commitment to training embodies a cornerstone of its philosophy. Firmly rooted in the belief that continuous learning anchors a rewarding, lifelong career, this commitment has been part of J.P. Morgan’s ethos since its genesis and remains a primary focus. This dedication to talent cultivation is manifest in its corps of senior executives, a significant number of whom have demonstrated allegiance to the firm with tenures encompassing one to two decades.

In a period characterised by rapid digital transformation, J.P. Morgan Private Bank remains steadfast in its dedication to innovation, relentlessly pursuing the delivery of an effortless, cutting-edge client

experience. This commitment is clearly reflected in the bank’s considerable technological investment, which in 2022 alone, soared to a staggering US$12 billion. This investment funded a team of 50,000 technologists worldwide, illustrating the significance the bank places on technology and innovation in shaping the future of finance.

Financial Performance: Maintaining sustainable competitive advantage

In 2022, J.P. Morgan Private Bank maintained its track record of strong financial performance, with global segment revenues increasing 16% year-on-year to USD $8.9 billion. This growth was driven by margin expansion due to higher rates, even amidst challenging operating conditions, slow economic growth, rising interest rates, and escalating inflation.

The Private Bank’s pre-tax margin ratio held steady at a robust 35%. A strategic emphasis on reinforcing its advisory capabilities has led to a 15% increase in client advisors to 3,137.

client relationships and ensure a more holistic and consistent client experience. With each advisor managing a portfolio of twelve clients, the bank offers direct access to a team of specialised advisors.

Total client assets for the Private Banking segment steadily increased in 2022 to USD $1.964 trillion, up from USD $1.931 trillion in 2021. Assets under management fell marginally to USD $751 billion, down from USD $805 billion in 2021, due to lower market valuations offset partially by client flows to long-term products. In contrast, peer Bank of America Private Bank reported a decrease in client balances to USD $563 billion in 2022 from USD $625 billion in 2021, while still posting a 9.5% year-on-year increase in total revenue.

Banking on Diversity: The Transformative Power of Equity and Inclusion

J.P. Morgan has implemented an integrated team model framework to strengthen its long-standing

A vital aspect of J.P. Morgan Private Bank’s leadership ethos is its strong commitment to diversity, equity, and inclusion. In the Asia Pacific region, the bank takes pride in its pool of senior women leaders who not only pioneer financial innovation but also set an empowering

precedent for future leaders. The bank’s leadership team in this region is testament to its devotion to equal representation, fostering a corporate environment where talent and leadership are recognised, irrespective of gender.

J.P. Morgan’s belief in the value of diversity extends beyond mere ethical posturing; it is substantiated by empirical evidence. Successful organisations bear a clear correlation with diverse workforces. Over a considerable length of time, J.P. Morgan has garnered substantial advantages from its commitment to inclusiveness and championing diversity. The bank, through its pragmatic approach, establishes a commendable blueprint for the wider financial sector, exemplifying the transformative potential of diversity and inclusion.

J.P. Morgan’s commitment to sustainability is another

cornerstone of its operations. In 2020, the bank pledged to finance and facilitate a staggering US$2.5 trillion by 2030 to advance solutions that tackle climate change and foster sustainable development. This pledge complements the bank’s efforts to enhance awareness of sustainable investing (SI) among clients, prospects, and advisors, attesting to the bank’s forward-thinking approach.

The unwavering growth and performance of J.P. Morgan

Private Bank underscore the bank’s tenacity and commitment to its clients. Armed with a dynamic team, cutting-edge technology, and a resolute devotion to diversity, equity and sustainability, the bank continues to solidify its commanding position in the global financial arena.

The Private Bank’s pre-tax margin ratio held steady at a robust 35%. A strategic emphasis on reinforcing its advisory capabilities has led to a 15% increase in client advisors to 3,137.

BNL BNP PARIBAS: BANKING INNOVATION UNLEASHED

FEATURE ARTICLE

BNL BNP Paribas Private Banking & Wealth Management, leveraging on the expertise of BNP Paribas Group, has set itself apart with the unique ONE BANK FOR ENTREPRENEURS AND FAMILIES model. Integrating various aspects such as Investment and Protection Solutions, Corporate & Institutional Banking, Commercial, Personal Banking & Services, this model caters specifically to entrepreneurs, family holdings, and corporate executives with diverse financial needs. Read more >>

In the rapidly evolving banking sector, BNL BNP Paribas Private Banking & Wealth Management sets itself apart through a steadfast commitment to sustainable development and a unique value proposition. The firm operates on the belief that their clients have the extraordinary power to shape the world, thus channeling its mission towards empowering client decisionmaking that positively influences the future.

The firm’s strength lies in its ability to amalgamate the global expertise of BNP Paribas Group, an international banking and financial services leader, with BNL’s deep understanding of the Italian market. This synergy results in a robust, diverse, and integrated service model designed to meet the multi-faceted needs of clients while enhancing the advisory quality in line with BNP Paribas Group’s investment strategy.

This commitment to excellence has not gone unnoticed. Recently, BNL BNP Paribas Private Banking & Wealth Management distinguished itself on the global stage, clinching the ‘Best Private Bank for Entrepreneurs’ award and earning a ‘Highly Acclaimed’ status for the ‘Most Innovative Business Model’ at the Global Private Banking Innovation Awards 2023. This

prestigious event, organised by The Digital Banker, recognises pioneers pushing the boundaries of excellence in private banking around the world.

Nirav Patel, Managing Director of Global Private Banker and The Digital Banker, commented on these award recognitions:

“BNL BNP Paribas Private Banking & Wealth Management’s innovative ONE BANK FOR ENTREPRENEURS AND FAMILIES model has set new standards in private banking. By fusing the global expertise of BNP Paribas Group with deep insights into the Italian market, they’ve demonstrated an unrivalled commitment to sustainability, technological innovation, and a holistic approach to wealth management, truly embodying what it means to be a gamechanger in the industry.”

Forging the Future of Banking

BNL BNP Paribas Private Banking & Wealth Management, leveraging on the expertise of BNP Paribas Group, has set itself apart with the unique ONE BANK FOR ENTREPRENEURS AND FAMILIES model. Integrating various aspects such as Investment and Protection Solutions, Corporate &

Institutional Banking, Commercial, Personal Banking & Services, this model caters specifically to entrepreneurs, family holdings, and corporate executives with diverse financial needs.

The ONE BANK model centres on offering the best possible customer experience through technology and sustainability. It employs a high-level advisor, likened to a ‘trusted companion’, who, along with an expert advisory team, forms an integral part of the customer relationship. The model represents the firm’s commitment to providing excellence of service, upgraded market positioning and a seamless alignment with regulator requests, including non-resident customers’ needs.

The bank has been acknowledged for its innovative business model that utilises ESG criteria and promotes sustainable development. As a proud member of the Net Zero Banking Alliance, BNP Paribas is committed to achieving carbon neutrality by 2050, signalling their profound commitment to building a sustainable and harmonious future.

Their advisory services go beyond traditional banking, offering customised, integrated, and sustainable solutions that

factor in the life plans, investment objectives, and financial profiles of each customer. They prioritise long-term impact, striving to make a difference for future generations.

BNL BNP Paribas uses the Net Promoter Score methodology to track customer perceptions, with ten surveys launched in 2022 achieving a 98% response rate from target customers. Additionally, the Clover Rating, a proprietary Sustainability Rating for all asset classes, provides customers with transparency regarding their portfolio’s sustainability.

The bank’s future growth strategy includes expanding customer target, leveraging advanced analytics, diversifying relational channels, and automating key customer journey processes. They plan to grow organically, increasing the penetration

of relationship managers’ portfolios, and hiring new bankers, demonstrating their commitment to fostering longterm relationships.

Today, BNL BNP Paribas Private Banking & Wealth Management stands at the forefront of the

banking industry, empowering clients to shape the world, one investment at a time. Through their commitment to sustainable development and innovation, they continue to provide an integrated, customised, and sustainable banking experience that is truly unmatched.

The firm operates on the belief that their clients have the extraordinary power to shape the world, thus channeling its mission towards empowering client decision-making that positively influences the future.

LUCA BONANSEA Head of Private Banking & Wealth Management BNL BNP Paribas

NAVIGATING GLOBAL WEALTH’S FUTURE DYNAMICS

The global financial landscape in recent years has been nothing short of intriguing. Financial assets, often seen as a barometer of economic health and investor confidence, witnessed notable shifts. While there was an observed increase in one year, underlying currents tell a more intricate tale. For instance, North America’s financial assets experienced a decline from one year to the next. This trend was not isolated; several regions mirrored similar financial narratives, suggesting a broader global trend rather than isolated regional shifts. Read more>>

In the world of finance, the shifting sands of global wealth are a constant study of adaptation and strategy. This dynamic landscape, perpetually in flux, demands constant adaptation, foresight, and strategic nuance from stakeholders, be they individual investors, institutions, or nations. The recent years, underscored by the pronounced fluctuations of 2022, have been particularly enlightening. These shifts, influenced by a confluence of geopolitical, technological, and economic factors, provide invaluable insights. They not only sketch the contours of the current financial terrain but also illuminate potential pathways, challenges, and opportunities that will define the future of global wealth and investment.

The Current State of Global Financial Wealth

The global financial landscape in recent years has been nothing short of intriguing. As detailed in the BCG Global Wealth Report 20231, financial assets, often seen as a barometer of economic health and investor confidence, witnessed notable shifts. While there was an observed increase in one year, underlying currents tell a more intricate tale. For instance, North America’s financial assets experienced a decline from one year to the next. This trend was not isolated; several regions

mirrored similar financial narratives, suggesting a broader global trend rather than isolated regional shifts.

On the flip side, liabilities present a contrasting narrative. The report underscores a rise in global liabilities over the years. This increasing trend in liabilities suggests that nations and corporations were leaning more towards borrowing, possibly as a strategy to navigate financial challenges, bolster growth, or stimulate economies that appeared to be on the brink of stagnation.

The Macro Drivers of 2022’s Contraction

Unravelling the complexities of 2022 requires more than a cursory glance; it demands a meticulous deep dive into the myriad macroeconomic drivers that shaped that pivotal year. As nations grappled with the aftermath of a global pandemic, the economic landscape punctuated both residual challenges from previous years and new emergent factors. From shifting trade dynamics, volatile commodity prices, to evolving consumer behaviours accelerated by technological adoption, the year witnessed transformative events.

Economic Uncertainties:

The global economy in 2022 was in a state of flux, marked by unpredictability. Trade tensions,

often reflecting political discord and strategic economic positioning, hamstrung global supply chains, introduced volatility in markets, and put a damper on crossborder investments. Additionally, geopolitical issues, from territorial disputes to diplomatic standoffs, added layers of complexity to the global economic narrative.

In this backdrop, multinational corporations and small enterprises alike faced challenges in strategic planning, market expansion, and risk mitigation. Countries dependent on export-led growth saw disruptions, while import-dependent nations grappled with inflated costs and supply shortages. This environment, marked by uncertainty, necessitated agility and foresight on the part of policymakers and business leaders to navigate the economic maze of 2022.

Shifts in Investor Sentiment:

Historically, the global investor community serves as the pulse of the financial world. Their perceptions and strategies often dictate market movements. In 2022, a shift in sentiment was observed. External events, be they political upheavals, natural disasters, or technological disruptions, led investors to adopt a guarded stance, prioritising capital preservation over aggressive growth.

Furthermore, the collective memory of past economic downturns

influenced decision-making. Lessons from previous financial crises underscored the importance of diversification, liquidity, and due diligence. As such, 2022 saw a reevaluation of long-term investment strategies, with a tilt towards assets deemed ‘safe’ or ‘recession-proof’. This conservative approach, while prudent, impacted the flow of capital into emerging sectors or geographies.

Regional Disparities: The global financial landscape is a tapestry of diverse regions, each with its unique economic dynamics. In 2022, these disparities became starkly evident. Regions with robust financial systems, sound regulatory frameworks, and diversified economies were better positioned to weather the economic uncertainties of the year. Their resilience can be attributed to proactive governance, technological innovation, and infrastructural strength.

Conversely, regions more vulnerable to global pressures, perhaps due to over-reliance on specific sectors or external capital, faced challenges. Economic vulnerabilities were exacerbated by internal factors such as political instability, infrastructural deficits, or regulatory bottlenecks. For these regions, 2022 was a year of introspection, calling for reforms, strategic alliances, and recalibration of economic priorities.

Industry Profitability: Industries are the pillars of the global economy. Their performance, especially in terms of profitability, offers a lens into broader economic health.

In 2022, fluctuations in industry profitability metrics painted a mixed picture. On one hand, sectors aligned with digital transformation, renewable energy, or healthcare saw robust growth, buoyed by global trends and consumer demands.

On the flip side, industries facing regulatory hurdles, supply chain disruptions, or reduced consumer spending faced headwinds. Their profitability metrics reflected these challenges, pointing to the need for strategic shifts. Additionally,

external factors like trade policies, currency valuations, and geopolitical events influenced industry outcomes. Leaders in these sectors navigated these complexities, seeking innovation, efficiency, and adaptability as cornerstones of their strategies.

A Glimpse into the Future: Temporary Setback or a New Norm?

The disturbance observed in 2022 have naturally raised eyebrows, leading many to question whether these shifts signal a temporary disruption or hint at a more sustained, systemic change in the global financial ecosystem. Historical economic patterns suggest that periods of contraction or stagnation often precede robust growth phases. Drawing from this, and the data available, there is a palpable optimism for the future. Projections for 2027, for instance, indicate a promising surge in global wealth, suggesting that the events of 2022 might serve as a foundation for rejuvenated economic strategies and renewed investor confidence.

Yet, it’s crucial to approach these expectations with a blend of optimism and caution. The global financial environment is increasingly interconnected, making it susceptible to cascading effects

In 2022, a shift in sentiment was observed. External events, be they political upheavals, natural disasters, or technological disruptions, led investors to adopt a guarded stance, prioritising capital preservation over aggressive growth.

from regional events. Factors such as technological advancements, geopolitical stability, regulatory landscapes, and environmental considerations will play pivotal roles in shaping the trajectory of growth. While the downturn of 2022 could be perceived as a mere blip in the larger scheme, its lessons

underscore the importance of adaptability, foresight, and resilience in navigating the future.

While the events of 2022 have introduced uncertainties, they have also set the stage for innovation and strategic evolution. As regions recalibrate their economic priorities,

industries innovate in response to challenges, and investors adapt their strategies, the horizon seems poised for growth. Yet, this growth will likely be marked by an emphasis on sustainable, inclusive, and resilient economic practices, informed by the experiences of the past and aspirations for a prosperous future.

The global financial environment is increasingly interconnected, making it susceptible to cascading effects from regional events.

CRAFTING EXCELLENCE: WEALTH MANAGEMENT AT FIFTH THIRD PRIVATE BANK

FEATURE ARTICLE

Recognised as the best private bank for high net worth (HNW) clients, Fifth Third Private Bank provides a model that includes a complimentary wealth strategy as part of the Private Bank experience. Unlike many competitors where wealth planning may be just a simple retirement projection, Fifth Third Private Bank offers complex planning ideas that go beyond. Read more >>

Fifth Third Private Bank is more than just a regional wealth management firm; it is a symbol of trust and a beacon of innovation with strong community roots and a national reach. Specialising in comprehensive, advisor-led, and digitally enabled approaches to wealth strategy, this institution’s dedicated teams have crafted its position as a great private bank.

Recognised as the best private bank for high net worth (HNW) clients, Fifth Third Private Bank provides a model that includes a complimentary wealth strategy as part of the Private Bank experience. Unlike many competitors where wealth planning may be just a simple retirement projection, Fifth Third Private Bank offers complex planning ideas that go beyond.

These plans are tailored to each client’s unique journey, needs, and goals. What sets Fifth Third Private Bank apart is the personalised mapping of wealth strategies designed to navigate clients to a successful financial future. Every

member of the highly credentialed local wealth team focuses on providing digitally enabled, customised solutions, backed by senior strategists who often hold both CPA and attorney credentials.

In a remarkable achievement at the Global Private Banking Innovation Awards 2023, organised by The Digital Banker, Fifth Third Private Bank clinched two prestigious awards. The bank’s dedication to innovation, personalised strategies, and exceptional client services was celebrated as it was named the Best Private Bank for High Net Worth (HNW) Clients and Highly Acclaimed, Outstanding Private Bank for Growth Strategy.

Nirav Patel, Managing Director of Global Private Banking and The Digital Banker, lauded the institution’s efforts by saying, “Fifth Third Private Bank’s exceptional focus on high net worth clients, paired with their digitally enabled, tailored wealth management solutions, makes them an industry leader. The bank’s innovative

approach to growth strategy, supported by a deepened wealth strategy offering and the integration of best-in-class digital capabilities, clearly delineates why they’ve secured these accolades.”

With over a century of wealth management experience, Fifth Third Private Bank has remained steadfast in dedication and adaptation. In Q3 2021, the bank’s value proposition evolved, deepening its wealth strategy offering for Private Bank HNW clients. This new model now offers a complimentary wealth strategy, unveiling unknown risks and optimising efficiencie.

In Q1 2022 alone, more than 200 Private Bank clients benefited from this new model. Key performance success indicators show an increase in client satisfaction metrics and growth in assets and fees. Private Bank clients engaged in wealth planning revealed a +58 bps higher Overall Satisfaction Rating and a +47 higher Net Promoter Score.

With over a century of wealth management experience, Fifth Third Private Bank has remained steadfast in dedication and adaptation.

Tracing the Journey: The Evolution of Wealth Strategy

Fifth Third Private Bank’s commitment to being the best private bank for HNW clients led to the launch of its evolved value proposition. Beginning in Q3 2021, after in-depth research and planning, the bank offered a deeper, more comprehensive wealth strategy, striving to create the best possible experience for HNW individuals and families.

Looking ahead to 2024, Fifth Third Private Bank has ambitious plans to remain a best-in-class

relationship bank. The focus will be on the addition of Wealth Management Advisors and acceleration of teams. Technology implementations will continue to eliminate manual processes and drive consistency in client and employee experience.

The introduction of this innovative initiative has shown measurable success within the institution itself. With AUM at $32 billion and a positive net flow of $600 million in 2022, there was also a year-overyear loan growth of 13%. The 2021 Private Bank Client Experience survey revealed higher loyalty scores and satisfaction among

clients using Fifth Third Private Bank’s digital Life360 platform.

Fifth Third Private Bank’s unique and forward-thinking approach to wealth management for HNW clients is a testament to its understanding of the sophisticated financial landscape. The blend of personalisation, technology, and strategic planning has not only brought success and satisfaction to its clients but has also carved a distinctive and respected space for Fifth Third Private Bank in the global financial community. The future, it seems, holds even more promise and potential for this exceptional institution.

MARRYING TRADITION AND DIGITAL INNOVATION: SGPB’S UNIQUE APPROACH

FEATURE ARTICLE

SGPB’s renowned expertise in wealth planning, structured products, and complex loans places it at the forefront of the industry. Catering to entrepreneurs, High & Ultra High Net Worth Individuals, and family offices, it offers a comprehensive range of services, tailored to the specific goals and needs of its clients across multiple jurisdictions. From investment solutions to portfolio management, corporate solutions, wealth engineering, and financing solutions, SGPB’s offerings are meticulously crafted to meet its clients’ wealth structuring needs and development projects. Read more >>

Societe Generale Private Banking (SGPB) has once again raised the bar in the financial industry by winning six prestigious accolades at the Global Private Banking Innovation Awards 2023, organised by The Digital Banker. These awards include Best Private Bank in Luxembourg, Best Private Bank in Monaco, Best Private Bank in Switzerland; Best Private Bank for Structured Products; Best Real Estate Investment Advisory; and Outstanding Digital Marketing Campaign by a Private Bank/Family Office. These honours reflect SGPB’s continued dedication to excellence, innovation, and client-focused strategies.

Nirav Patel, Managing Director of Global Private Banker and The Digital Banker, said: “Societe

Generale Private Banking has demonstrated an exceptional capacity to innovate, particularly in their structured products and digital marketing strategies. Their bespoke offerings and targeted online engagement have proven to be not only pioneering but also immensely effective, aligning with the specific needs of their clients and setting a benchmark for private banking worldwide.”

Mastery in Structured Products and Wealth Management

Societe Generale Private Banking (SGPB), the wealth management arm of Societe Generale, has firmly established itself as the Best Private Bank for Structured Products. With

over €147 billion of AuM as of the end of December 2022, SGPB’s international presence extends across 10 countries with 2,000 dedicated staff.

SGPB’s renowned expertise in wealth planning, structured products, and complex loans places it at the forefront of the industry. Catering to entrepreneurs, High & Ultra High Net Worth Individuals, and family offices, it offers a comprehensive range of services, tailored to the specific goals and needs of its clients across multiple jurisdictions. From investment solutions to portfolio management, corporate solutions, wealth engineering, and financing solutions, SGPB’s offerings are meticulously crafted to meet its clients’ wealth structuring needs and development projects.

In addition, Corporate Social Responsibility (CSR) has emerged as a strategic objective, with SGPB focusing on responsible leadership and commitment to clients, colleagues, community, and climate. A responsible organisation is seen as a vital part of their long-term vision.

Pioneering Digital Marketing Campaign in Private Banking

SGPB’s digital marketing campaign sets a precedent in the private

Image: Alexandros Michailidis / Shutterstock.com

banking industry, highlighting the relevance and effectiveness of digital strategies even among its niche target of wealthy clients. Since January 2022, a promising lead acquisition digital marketing campaign has been initiated, encompassing two distinct actions:

Keyword Buying Campaign on Google: This innovative approach scrupulously selects keywords related to queries identified by Google, ensuring visibility among potential clients. Clicking on SGPB’s advertisement redirects customers to a contact form, presenting them with the global expertise of the private bank.

Lead Generation Campaign on LinkedIn: Utilising LinkedIn, SGPB adapts messages according to a target audience defined by their experts and LinkedIn itself. Interested respondents are

directed to a form that enables them to contact SGPB if they wish.

The digital campaign’s promising results, including 130,000 visitors to the website, 3134 forms filled in, and 23 new customers acquiring 173M€ AUM, demonstrate its efficacy. The strategy also contradicts the common belief that wealthy clients avoid online mediums for financial inquiries.

What sets SGPB’s campaign apart is the careful integration with its content strategy. Since the launch of their revamped website, privatebanking.societegenerale. com, in December 2019, a content strategy has been implemented, featuring articles, interviews, videos, podcasts, and more. These materials cover various topics from Wealth Planning to Real Estate, Economics, Private Equity, and more, thus driving traffic and engagement.

Furthermore, continuous SEO optimisation since mid-2021, lead generation on LinkedIn, and exploring new avenues of development are expected to drive further success. Future plans include extending the campaign to wider geographical areas and possibly to the UK’s private bank, SG Kleinwort Hambros, by late 2023/early 2024.

Societe Generale Private Banking stands as a beacon in the world of private banking, with its unparalleled expertise in structured products and groundbreaking digital marketing initiatives. These achievements underscore SGPB’s commitment to innovation and responsiveness, reflecting its ability to blend traditional banking excellence with modern marketing strategies. It sets an inspiring example for the financial industry, proving that adapting to digital trends is not only possible but profitable and sustainable.

Societe Generale Private Banking stands as a beacon in the world of private banking, with its unparalleled expertise in structured products and groundbreaking digital marketing initiatives.

INCLUSIVE INVESTMENT AND THE FUTURE OF PRIVATE MARKETS

FEATURE ARTICLE

For private banks and larger financial entities, the reshaped landscape offers both unparalleled opportunities and intricate challenges. The burgeoning interest in private markets means banks can design bespoke private equity, real estate, and debt products tailored to the specific demands of an expanding client base. However, challenges persist. Read more>>

From the outset of the 21st century, private markets have undergone a significant evolution. Even amidst challenges like the COVID-19 pandemic, these markets showcased considerable resilience. While the pandemic disrupted many sectors, public markets faced notable volatility. In comparison, private markets stood firm, bouncing back rapidly after a temporary slowdown in early 2020. Offering longer investment horizons and the potential for significant returns, private markets have become a magnet for institutional investors seeking reliable yields and a shield against unpredictable market shifts.

However, the challenge has been inclusivity. Traditionally, private markets primarily served the affluent and significant institutions, leaving many potential investors, including accredited ones and family offices, on the periphery. The prevailing sentiment is that such limited access neither fosters a holistic market environment nor addresses the

broad spectrum of investors eager to participate.

Widening the Access Corridor

In the latest McKinsey Global Private Markets Review, the report underscores the profound transformation of private markets, noting that assets under management (AUM) reached a staggering $11.7 trillion by 30 June 20221. As these markets mature, there is a clear trend towards diversifying access. Regulatory reforms are now enabling broader participation by accredited investors and family offices. This expanded inclusion recognises the financial expertise of these groups and offers them avenues to diversify their portfolios, granting access to sectors that were previously more elusive.

Moreover, the surge in interest from self-directed investors and the retail sector has encouraged regulatory

bodies to revisit the definitions of “accredited investor”. Expanding this definition heralds a move towards democratising access, allowing smaller institutions and family offices to penetrate a once-exclusive domain.

Opportunities and Perils in the New Era

For private banks and larger financial entities, this reshaped landscape offers both unparalleled opportunities and intricate challenges. The burgeoning interest in private markets means banks can design bespoke private equity, real estate, and debt products tailored to the specific demands of an expanding client base.

However, challenges persist. The McKinsey Global Private Markets Review2 indicates that while private markets demonstrated resilience during downturns, they also saw receding deal volumes and

While private markets’ allure is compelling, inherent risks exist. With sectors like tech witnessing waning returns and the decline in the number of funds, banks must scrutinise their forays meticulously.

fluctuating valuations in certain segments. For institutions, the message is clear: diversification is essential, but caution remains paramount.

Banks must also address the ‘denominator effect’. As private markets form a substantial chunk of institutional portfolios, a slump in public market valuations can unintentionally amplify the relative weight of less liquid private assets. This might lead to liquidity concerns, especially if sudden capital reallocation or cash calls arise.

Furthermore, while private markets’ allure is compelling, inherent risks exist. With sectors like tech witnessing waning returns and the decline in the number of funds, banks must scrutinise their forays meticulously.

Forecasting the Future of Private Market Inclusivity

The private market sector is poised at an intriguing juncture. Recent data suggests a marked uptrend in ESGfocused fundraising, which reached unprecedented levels in 2022. Such a trend doesn’t merely indicate a shift in investment patterns; it

reflects a broader evolution in the industry, aligning more closely with global socio-environmental priorities. As environmental, social, and governance factors take centre stage, there’s an evident push within the sector to be more responsive to these global imperatives, recognising their long-term impact on investment outcomes.

Yet, alongside these promising trajectories, the sector faces its share of challenges. One of the most pressing of these revolves around diversity, equity, and inclusion. Despite the progress and the broader movement towards open access, concerns persist about the representation within private market firms. A palpable disparity exists in leadership roles, decisionmaking positions, and even in talent acquisition, indicating that the journey towards true inclusivity is

still underway.

To foster sustainable growth, it’s essential for the sector to not only focus on financial gains but also to embody the spirit of broader societal shifts. True growth and sustainability in private markets will hinge on its ability to align with these shifts, ensuring that every stakeholder, regardless of their background or position, is valued and included.

In essence, the future of private markets lies in balancing two critical facets: advancing financial goals while ensuring that the democratisation of access and representation moves beyond mere rhetoric. As the sector advances, it’s this confluence of financial acumen and social responsibility that will determine its long-term success and relevance in the investment world.

1 – McKinsey: McKinsey Global Private Markets Review: Private markets turn down the volume 2 – Ibid.

NUVAMA PRIVATE: POWERING WEALTH GROWTH THROUGH TARGETED STRATEGIES AND OPTIMISED TECHNOLOGIES

Nuvama Private secured USD $29 billion of client assets under management. This consistent growth approach has been driven by a unique “attract, retain and empower” strategy that is able to both source investor flows and deliver superior returns. Similarly, Nuvama Private has been actively hiring management graduates from top business schools in India, inspiring them to embark on a diverse and captivating career journey. Read more >>

Nuvama Private, the UHNI arm of Nuvama Group, has emerged as one of the fastest-growing private wealth players in India. With a mission to preserve, enhance and ensure sustainable growth of its clients’ wealth, Nuvama Private has prioritised keeping individual and institutional customer needs at the centre of all its endeavours.

Currently, its client base comprises of new new-age entrepreneurs, Business Owners, Family Offices, CXOs and Corporate Treasurers. The firm caters to more than 3000 of India’s wealthiest families and provides advise to ~0.8M highnet-worth individuals and other affluent clients.

Developing a growth mindset through an “Attract, Retain and Empower” strategy

Importantly, by end of fiscal year 2023, Nuvama Private secured USD $29 billion of client assets under management. This consistent growth approach has been driven by a unique “attract, retain and empower” strategy that is able to both source investor flows and deliver superior returns.

Similarly, Nuvama Private has been actively hiring management graduates from top business schools in India, inspiring them

to embark on a diverse and captivating career journey. The company remains dedicated to providing extensive training and fostering their talents for the future years, directly addressing the talent development needs of the wealth management industry.

Accelerating value creation and delivery of wealth management solutions

Fundamentally, Nuvama Private has been effective in connecting its diverse client base with the requisite tools needed to preserve and grow their wealth. The team of financial advisors have a specific mandate to create bespoke solutions for clients incorporating a 360-degree approach to client’s needs while extending their expertise across asset classes informed by market research and prudent risk management to hedge market volatility. Our solutions include the distribution of highquality Wealth Financial Products, Investment Advisory, Estate & Succession Planning, Securities Broking & Lending.

Moreover, the private wealth manager deftly leverages technology as a value driver and a lot of focus and resources are dedicated to crafting an exceptional technological platform spanning

the back office, mid office, and front end. This commitment very well reflects in our Nuvama Private app where clients can view their portfolio data on the go and benefit from simpler financial reporting. Additionally, the Nuvama Infinity Platform solution provides a comprehensive investment approach to clients, enabling the creation of multi-asset class portfolios, ably managed by a team of experts and designed specifically based on client objectives, circumstances and life stage.

Identifying new investment opportunities as portfolio return enhancers

Certainly, Nuvama Private continues to strengthen its capabilities in assessing and evaluating new opportunities across markets and asset classes. Ranging from public and private equity to fixed-income securities and alternate investments, the private wealth manager is continually looking to identify and execute market-related opportunities for clients in a timely and systematic manner capturing superior risk-adjusted returns.

Clearly, the ability to quickly respond, adjust and adapt to evolving investment trends on a

real-time basis, while also actively monitoring portfolios, especially during period of adverse market movement remains Nuvama Private’s key sustainable competitive advantage among its peers. Indeed, as Nuvama Private continues to enhance its

innovation in wealth management solution, technology-led service capabilities and exceptional client experience it remains well placed to expand its assets under management.

Affirming its institutional

achievements, Global Private Banker has recognised Nuvama Private as the “Best Private Bank in South Asia” and a Highly Acclaimed “Best Private Bank for UHNW Clients” distinction at the recently concluded Global Private Banking Innovation Awards 2023.

Fundamentally, Nuvama Private has been effective in connecting its diverse client base with the requisite tools needed to preserve and grow their wealth.

EXCLUSIVE INTERVIEW WITH MARC VAN DE WALLE, STANDARD CHARTERED BANK

EXCLUSIVE INTERVIEW

Exclusive Interview with Marc Van de Walle, Global Head, Wealth Management, Deposits and Mortgages, Standard Chartered Bank: A balanced asset allocation is still the best way investors can prepare themselves for any uncertainty. Read more >>

Standard Chartered Bank maintains the requisite investments in technology and people with aspirations to become the leading wealth manager augmented by world-class digital wealth capabilities. In an interview with Global Private Banker, Marc Van de Walle, Global Head, Wealth Management, Deposits and Mortgages, Standard Chartered Bank reflects on the Bank’s transformation journey in developing a single integrated wealth platform helping clients navigate an uncertain market environment.

The global wealth management industry had a relatively difficult year in 2022 given ongoing economic uncertainty and market turbulence. What are your current priorities in terms of driving new growth for the business and expanding Standard Chartered Bank’s reach with affluent customers across Asia, the Middle East and Africa?

Marc Van de Walle: Our priority is to be a top 3 wealth manager across our footprint. We aim to deliver the best personalised wealth advice to our clients to help them prosper and achieve their life goals. We leverage on three key strengths:

(1) a strong, trusted, brand built over more than 160 years of presence in our footprint markets, (2) an

open architecture product platform enabling unbiased advice and best pricing and (3) our ability to serve a continuum of client segments, who can evolve with us and benefit from more sophisticated services as they become wealthier during their lifetime.

We are building world-class digital wealth capabilities for our RMs and clients to provide an intuitive experience and to scale our growth.

To enable end to end digitisation, we are investing in a single wealth platform to drive technology convergence across segments and markets, harness scale and cost efficiency, automate operations and increase the speed of deployment.

By adopting a digital-first approach, we aim to deliver omni-channel, seamless and integrated RM and client experiences with intuitive design starting from client needs. We are scaling up our advisory capabilities with advanced RM tools, such as myWealth Advisor, automated client portfolio health monitoring and direct-to-client content to provide personalised client experiences.

Our wealth propositions are advisory-led, not product-led. We are embedding a portfoliobased advisory process with SC Wealth Select. This is our advisory framework that leverages a broad,

open architecture, best-in-class product offering that is anchored in CIO thought leadership. Our Today, Tomorrow and Forever framework helps clients to look at their financial needs through a whole-life journey.

Standard Chartered Bank’s Half Year Report (2023) records wealth management income up by 10% (constant currency basis) reversing five quarters of YoY decline. What has contributed to this turnaround and catapulted the Bank as a top-three wealth manager in Asia?

Marc Van de Walle: Last year, we witnessed the exceptional confluence of 3 shocks: historically high inflation, the transition from a unipolar world to a multi-polar one and the continuation of Covid lockdowns, particularly in North Asia. These shifts resulted in one of the worst years in financial markets performance history, which weighed on our wealth management business, after a record year in 2021.

With improving market conditions this year, our wealth management business has continued on a recovery trajectory. In particular, the rebound in Hong Kong and Mainland China is aided by the China reopening at the start of this year.

But beyond macro factors that affect everyone, there are three

things that contributed to our good performance.

First, we are constantly getting better at harnessing the benefits of our client continuum and engaging with more clients to help them navigate the markets and manage their wealth. As at first half of 2023, we have acquired 3x new Priority clients in Hong Kong, 2x new Priority clients China and 2x new Priority clients in Singapore (YoY).

Second, we are leveraging Standard

Chartered’s unparalleled network and improved our international banking offering to help clients manage their cross-border wealth needs.

Third, our investments in digital wealth capabilities are bearing fruit: they greatly increase the productivity of our RMs and Investment Advisors and improve client experience. Digital tools such as MyRM enable clients to communicate with their RMs more conveniently anytime, anywhere;

more trading tools are getting automated, and advisory tools such as MyWealth Advisor and MyInsure support RMs to give better advice in a fraction of the time required before.

We see this reflected in our H1 2023 Client Satisfaction Survey, where clients rated us Best-in-Class in 8 out of 9 markets that participated in the survey. In particular, clients indicated that they like the access to personalised wealth advice and that our wealth products are well supported by a strong digital platform.

Wealth managers today often focus on client empowerment through self-service digital platforms, hybrid customer engagement models and collaboration tools that help customers navigate a complex investment landscape. How is Standard Chartered Bank helping make this possible for clients (through simplified digital platforms and processes)?

Marc Van de Walle: We have continued to invest into technology and our people, despite market uncertainties. Our transformation work to build a single integrated wealth platform underpins our endeavour to continually improve client experience through a simple interface that is easy and intuitive.

There are three components to our wealth platform:

The core platform where all products are booked. It is the foundation on which all other components rest and we strive to converge it across segments and geographies to lower costs and improve time to market

The execution platform, enabled by straight-through-processing allows for trading capability that is fast, cost effective and, where possible, self-directed by clients.

The advisory platform supports relationship managers with tools such as myWealth Advisor and MyInsure that help them assist clients with holistic portfolio analysis. myWealth Direct even gives clients direct access to portfolio recommendations for portfolio rebalancing.

Nonetheless, we also see that the “last mile” of a wealth conversation is largely still RM-led. Therefore, we are committed to not only equipping our RMs with tools but also investing in the training our RMs and wealth specialists under the SC INSEAD Wealth Academy. The training equips them with not only financial and technical knowledge but also advisory skills and other soft skills such as client communication so they can take client conversation to a higher level.

India is proving to be an exciting market for wealth managers with different players including Standard Chartered Bank expanding their presence onshore to better service HNWI/UHNWI clients. How is the Bank looking to strengthen its wealth management offering in India and other similar markets that are seeing robust growth in the size of affluent customers yet remain relatively underserviced?

Marc Van de Walle: Standard Chartered is in pole position among foreign banks in India on wealth management. India remains a strong affluent growth market for us. We have seen a nearly 2X growth YOY in our investment net sales for India. SC Invest, our online funds platform has seen transactions and new AUM grow in double digits YOY.

We are also scaling up our Private Banking presence in India. We have opened new private banking booking centres in Kolkata and South Chennai this year and have correspondingly grown our Relationship Manager bench strength.

In India and other markets across our footprint, we continue to expand our product suite, in particular in alternatives and ESG funds, to cater to the evolving and more

sophisticated needs of affluent clients.

Importantly, our digital-first strategy is vital in reaching out to the growing affluent customer group across different markets. While digital solutions and tools are critical in today’s world, we are also cognizant of the need for personal touch and will continue to complement digital with personalised advice.

In terms of your investment outlook, with further interest rate hikes, a potential US credit downgrade and S&P 500 rally all on the horizon where do you see opportunities of wealth preservation for investors? Are there any asset classes or markets that still remain attractive in the short to medium term?

Marc Van de Walle: We believe major central banks are largely done with their rate hikes. Inflation is cooling globally, as seen from the latest data from the US and China. Indeed, growing deflationary pressures in China should sustain this global disinflationary trend in the coming months. At the same time, job markets in the US and Europe remain tight, sustaining the consumption-driven growth.

We expect this ‘goldilocks’ scenario of cooling inflation and moderate growth to sustain the risk asset

rebound in the next few months. Nevertheless, over a 6-12-month horizon, elevated wage pressures due to tight job markets and rising crude oil prices are key risks to this benign outlook. Then there is the drag on growth itself from the past year’s rate hikes, which raises the risk of a recession in the US and Europe over the next 6-12 months.

Given these divergent drivers, we believe a balanced asset allocation is still the best way investors can prepare themselves for any uncertainty. Maintaining a diversified asset allocation and rebalancing at regular intervals (say once a quarter) is the only battle-hardened and timetested way to preserve and grow our wealth over the medium-to-longterm, without taking undue risks.

Within this, we see an opportunity to add to Developed Market government bonds and rotate from expensive US equities to depressed Asian stocks and Asia USDdenominated bonds.

The global disinflationary trend is particularly positive for US and

European government bonds. Although yields have risen lately, partly because of oil price-driven rise in inflation expectations and concerns about rising US government bond issuance, we expect slowing global growth to eventually cap yields.

At current yield levels, the riskreward balance from investing in US and European government bonds is attractive. For example, the US 10year yield could rise to a new cycle high of 4.5%, in line with nominal trend GDP growth, and bond investors would still not lose money on a 12-month horizon. Meanwhile, a drop in the 10-year yield by an average 260bps experienced during past recessions would imply a 14% total return in a year.

We believe China’s deflationary pressures raise the prospect of more stimulus measures to boost domestic consumption. We expect increased incentives to build self-sufficiency in China’s hightech infrastructure. These factors explain our preference for Consumer Discretionary and Communications

Services equity sectors in China. Overall, China’s 12-month forward P/E ratio is almost half that of US equities and 35% lower than global equities. Given this, we see favourable risk-reward in locking in some of this year’s gains from US equities and rotating into China equities.

We also like Japanese equities. Improving corporate governance means companies there are increasingly focussed on delivering strong profitability, dividends and share buybacks to investors. The Bank of Japan is also likely to keep the economy running hot for a while longer.

Asia USD-denominated bonds also offer good opportunity for investors. The asset class is predominantly investment grade. More stimulus measures in China, especially further support for the property sector, is likely to boost the asset class. Additionally, a weaker USD, aided by a peak in Fed rates, is likely to provide a fillip to fund inflows into Asia and other Emerging Markets.

We are building world-class digital wealth capabilities for our RMs and clients to provide an intuitive experience and to scale our growth.

Disclaimer: Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably occur in some cases. If you believe that a serious inaccuracy has been made, please email nirav@digitalbankeronline. com. This report is provided for information purposes only. Global Private Banker and The Digital Banker accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents.