Saxo is very digital and we run on a tight headcount because of this, Adam Reynolds, CEO Asia Pacific of Saxo Capital Markets, says in an interview with finews.asia. 

Mr. Reynolds, how is the current market uncertainty affecting Saxo Capital Markets (Saxo) throughout in Asia?

The company has been able to post solid growth across Asia over the last three years and we envisage that continuing. Asia-Pacific (APAC) remains a key focus for the group in terms of growth projections and new partnership opportunities.

With the ongoing digitization of the markets, Saxo is well placed to increase our primary market share as we service both retail clients in the Mass Affluent and High-Net-Worth spaces as well as Institutional clients in the Hedge Funds and Wealth Management spaces.

«We are always looking to reduce cost and complexity in our business model»

On top of that, our partnership model allows us to scale up the reach of our platform through partners to their end clients in many different jurisdictions where we do not necessarily want to establish our own presence.

Does Saxo have any plans to expand in Asia this year?

Opportunities for partnerships can take many forms, whether it be a Joint-Venture partnership, an introducing broker model or a white label partnership.

Whilst we are not looking at any direct acquisitions in Asia at this moment, we will always look at opportunities that might arise to acquire more clients. That may involve any of the previously mentioned partnerships, or a tactical acquisition if the right opportunity arose.

Many financial institutions that come into Asia struggle to contain their cost income ratios. How is Saxo managing on this front?

The bank is very digital and we run on a tight headcount because of this. We are always looking to reduce cost and complexity in our business model through increasing levels of digitization and through a homogenous offering across geographies.

«The rise of fintech is definitely enhancing our presence in Asia»

Our founders believe in a one bank, one account and one platform model, and we avoid getting distracted by adding new products or business lines that cannot fit within that model.

Is the exponential rise of fintech firms diluting or enhancing Saxo’s business in Asia?

The rise of fintech is definitely enhancing our presence in Asia as we have been able to collaborate with a large number of the new entrants into the market.

Saxo has a state of the art open banking platform which allows our fintech partner companies to focus on client acquisition, user experience and providing high quality investment portfolios.

«It would be challenging to be in an organization without a solid digital offering»

The bank compliments this by providing the access to the global equity, fixed income and currency markets for execution, settlement and custody of the underlying clients assets.

If Saxo is winning business, who is losing it – traditional brokers, local retail banks?

That is a really good question. We see the overall market expanding as clients look to diversify their investments both geographically and through different asset classes.

In an expanding market, it is not necessary that anyone is necessarily losing overall. However, definitely it would be challenging to be in an organization without a solid digital offering as that trend is clearly not going away.

«I don’t think it is possible to envisage a future in Asia without China» 

Many of our potential partner banks are struggling with digitization of their offering and we have a firm dialogue with them as to how we can best work together.

Where do you see the business in five years’ time and will China be a major part of it?

I don’t think it is possible to envisage a future in Asia that China is not a part of. The rapid growth in middle class wealth is causing issues with the closed capital account, and at some stage the long awaited opening up will occur.

«China will start to accelerate again once the 19th National Congress is completed»

Whilst the pace toward this slowed with the 2015 China equities sell-off, I expect we will start to accelerate again once the 19th National Congress is completed in autumn.

For Saxo, we see our business continuing to grow at a significant pace and the partnerships we have announced over the last twelve months, especially in China, being firm contributors to our growth.

Adam Reynolds is the CEO Asia Pacific of Saxo Capital Markets. He has 30 years’ experience in the financial markets and has worked throughout Asia and Europe over the course of his career. He was Asia CEO for The Cambridge Strategy Asset Management managing the Asia trading team, business development across the region and portfolio managing their Asian Macro fund.

Prior to that he was Managing Director for both Merrill Lynch and Societe Generale heading their European Institutional Sales team in the Global Currencies Group and as Head of Fixed Income and Currencies for Asia respectively.