Despite traditional assumptions, wealth management is proving to be no exception to technological disruption, according to UBS APAC chief operating officer Wiwi Gutmannsbauer in a conversation with finews.asia on the bank’s digital milestones.
Accelerated by a constraining health crisis, previous assumptions are being broken down about private banking clients’ unyielding desire for human contact, be it to discuss complex investment products or sensitive family issues.
«Across the industry, we are no doubt seeing a rise in going digital during the course of this outbreak,» said Wiwi Gutmannsbauer, COO for UBS APAC and operating head for UBS Wealth Management APAC, in a conversation with finews.asia.
«In fact, the COVID-19 outbreak did not make our business ‹become digital,› it simply accelerated our plans and helped to make some decisions faster.»
Trading: Wholesale Conversion
Between December 2019 and June 2020, it saw its e-banking platform’s login rate almost double and the number of transactions on its e-trading platform quadrupled. In fact, the bank posted record second-quarter profits of $233 million from a six-fold increase in revenue to $658 million with more than 50 percent of its equity trades executed online.
«[W]ealth management is not immune to digital disruption, nor should it be,» Gutmannsbauer said. «Any disruption that enhances the client and employee experience is welcome and will help the industry to move forward.»
Compared to its global counterparts, private banking clients in Asia are renowned for limited asset penetration in discretionary mandates and very hands-on active trading. The sharp increase in second-quarter volatility further led investors to not only review risk from existing positions but seek new opportunities. Many of these were reportedly short-dated trades that would have rolled over and resulted in even more transaction volumes.
Getting to the Trade
It’s one thing to already have clients at the decision-making point in an industry with ample clever investment ideas and effective trading platforms. But it’s another thing to actually get there especially given the greater complexity and sums of money involved relative to the retail segment.
This is where UBS’s diversified investments and focus in areas relating to digital connectivity and engagement have paid off. Its «UBS Advisor Messaging» solution, which allows secure communications via popular platforms like WhatsApp, saw the number messages double in the first half of 2020. Asia is also globally the first region to launch Skype conferencing with clients.
And its use of technology spans beyond just digital communications. Leveraging its portfolio health check alerts, private bankers can perform strategic client reviews more often and provide holistic advice rather than simple product-pushing.
Beyond Banking
Although the bank has seen solid progress in client digital adoption, it is perhaps the staff who are leading the revolution. The bank launched its remote workplace platform, «UBS Workspace,» and has already observed strong traction amid the ongoing pandemic.
The remote workplace platform allows staff to access files and other information in the exact same format on any device while at any place and time. And the global wealth management unit rolled out a digital signature tool for the first time ever for internal review and approvals, a move that it claims has improved efficiency for over 20 processes.
Currently, about 90 percent of Asia Pacific employees can work from home with remote access through «UBS Workspace» and so far, three-quarters of all staff in the region have already been enabled by the platform across both the wealth management and investment banking business.
Pandemic-Tested
A swift digital transition of a private bank of UBS's size – $449 billion in assets under management and over 900 relationship managers in Asia – is no easy feat. According to Gutmannsbauer, the bank’s readiness was achieved through a multi-year technical and cultural transformation and it took on its first trial in the outbreak.
«Ever since our digitalization journey in APAC began, the way we work and how we interact with our clients has transformed. This season has put our platforms such as UBS e-banking, e-trading, UBS Advisor Messaging to the test. We are proud of how they have been arming us with stability and sustained growth during this storm,» he said.
«We firmly believe in technology to support and enrich our business model. An extremely strong and highly digitized technology backbone is key.»
