The Vaduz-based private bank is committed to expanding its base in Asia and increasing the number of its employees in the region, its chief executive Paul Arni told finews.asia.
Asia figures prominently in VP Bank's growth plans – the bank has a target to generate net revenue of 100 million Swiss francs ($109.35 million) by 2026, with a significant contribution coming from the region, CEO Paul Arni said in an interview with finews.asia about expanding and investing in Asia.
Established in 1956 in Liechtenstein, VP Bank has an international presence in Switzerland, Luxembourg, Singapore, Hong Kong, and the British Virgin Islands. The bank has bulked up in Asia considerably recently, upgrading its Singapore branch to a wholesale bank in 2018 as part of its expansion bid in the region. It has maintained its expansion momentum in Asia, despite the ongoing coronavirus pandemic.
Arni took over as group CEO in October 2019, following the sudden and unexpected exit of former CEO Alfred Moeckli. Arni was previously the Switzerland head of wealth management and a member of the board of management at Deutsche Bank, deputy regional manager of Switzerland for Julius Baer, global COO for Credit Suisse's private banking arm, and spent 15 years in various roles at UBS.
Paul Arni, VP Bank has called Asia a «focus area for growth opportunities» – can you elaborate on the opportunities the firm sees in the region?
As the number of wealthy individuals continues to grow, Asia is one of our key target regions and we see substantial opportunities here. As a «boutique bank,» we have clearly positioned ourselves as a source of first-class financial solutions for a very demanding clientele.
We plan to expand through strategic partnerships and thereby gain access to new client segments.
Our business model is based on two strategic business fields in the region: private banking and intermediaries. On one side we cater to the needs of wealthy individuals with assets in excess of $1 million. On the other hand, the growing number of financial intermediaries in Asia opens promising perspectives for us as well.
Our heritage as an intermediaries bank puts us in a strong position to continuously expand our network and offer convenient services and products for trustees, family offices and external asset managers. Finally, we want to expand our regional network through strategic partnerships and thereby gain access to new client segments.
How much does the region fit into the bank’s next strategy cycle, which begins at the start of 2021?
We have been in Singapore and Hong Kong for more than 10 years, and the Asian market is an important cornerstone of our strategy. Our next strategic cycle, which runs until 2026, focuses on three strategic core themes. First, we will continue to develop our existing business with wealthy individuals and intermediaries. This includes continuously adapting our product offering to the needs of our local clients.
The Asian market is an important cornerstone of our strategy.
For Asia, this means we will tailor services and products to the needs of our Asian clientele. Secondly, we will scale our processes and operations through standardization and automation. Our Asian clients will benefit from even better and more digitalized services. And, last but not the least, we will build new competencies - giving priority to new business opportunities.
Our partnership with China's Hywin Wealth provides us with an excellent opportunity to expand our business and increase our reputation by teaming up with a highly professional and widely trusted partner, enabling us to benefit from the growing base of affluent individuals in the region.
To-date the collaboration efforts are progressing well and generated multiple opportunities for synergies and active client referrals. A highlight was certainly also the co-launch of our research report «Winning Women in Business Asia,» which was distributed to the deep network of Hywin Wealth clients.
What has been VP Bank's biggest challenges arising from the pandemic?
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