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The impact of the pandemic has forced leading families and entrepreneurs to rethink everything – not only on the way they are driving their businesses but also on which values they are willing to drive their life, Vincent Magnenat, CEO of Lombard Odier Asia, said in an exclusive interview with finews.asia.

Vincent Magnenat, 2020 was definitely a particular year. How did business fare?

The latest results of the Group were extremely strong. Of course, 2020 was an unprecedented year. But I think the alignment of Lombard Odier as a family business in its seventh generation with our clients makes sense more than ever. The values that we share bring a lot of confidence and trust to our clients. That is why we saw a huge inflow of new assets in 2020.

Where was business stronger – in Singapore, Hong Kong or Tokyo?

We have three major legs: Singapore, Hong Kong and Tokyo and they are all doing well. Let me put it this way: I am happy to be a CEO in Asia.

In addition, we have strategic alliances all over Asia. This is the strategy that we started in 2012 and we still hold on to it. And this is for good reasons because we believe that the future is also onshore, not only offshore. We were able to support our strategic alliances onshore through a lot of content and expertise – investment and family services, especially during such an exceptional year.

Are there any new strategic alliances in the pipeline?

We will continue to look for opportunities to enter new markets in the region through this strategy of building a strategic alliance in the local markets, while at the same time enabling our strategic alliance to provide their clients with the same quality of products and services that Lombard Odier offers its own clients across the globe.

«One can truly call this an ecosystem, where there are benefits of being part of a collective»

Today we have six strategic alliances – Kasikornbank in Thailand, UnionBank of the Philippines, Bank Mandiri in Indonesia, Taipei Fubon Bank, Mizuho Securities (Singapore) and JBWere in Australia. Our strategy thus far has been to solidify and build on our relationships with our current strategic alliances, and supporting their ambitions to be the number one or most preferred private bank in their respective markets.

Additionally, clients from our strategic alliances do not benefit solely from the relationship between Lombard Odier and the financial institutions in their local markets. This network of strategic alliances that we have built up enables clients to access opportunities in other markets by leveraging the strengths of the local financial institution. One can truly call this an ecosystem, where there are benefits of being part of a collective.

Speaking of this network, Lombard Odier worked together with your strategic alliances on a recent study of ultra-high net worth Individuals in Asia?

Indeed, 2020 was an unprecedented year, where the COVID-19 pandemic brought a significant shift to our lives. It has transformed our world and its impact on every aspect of daily living will be felt for years to come.

Thus, we undertook this study with some of our strategic alliances as we felt that it was ever more important to engage and communicate with our clients during this time of crisis – to better understand the current environment and needs of ultra-high-net-worth individuals (UHNWIs) in the region, and to help steer the industry as a whole to address UHNW trends and challenges.

More than 150 UHNWIs domiciled in the Philippines, Hong Kong, Indonesia, Japan, Singapore, Taiwan and Thailand participated in the study. The findings are presented across four broad categories – technology, investment, sustainability and family services – themes that have gained the most importance for UHNWIs since the COVID-19 crisis began.

What have you gleaned from the results? How can private banks position themselves to support the UHNWIs?

The findings illuminate the expectations and roles that private banks play in this new reality – the ability to leverage technology as a conduit in building relationships and providing enhanced service offerings; quality investment advice and discretionary offering, and the ability to facilitate extra financial services, including financing; more engagement and guidance in topics such as sustainability; and a strong expertise and understanding in managing and protecting wealth through generations.

«This new generation wants to bank with banks with a core conviction in sustainability»

One thing is clear, UHNWIs have reflected a strong desire for a trusted local adviser that helps them navigate and access markets they can no longer travel easily, and for banking relationships with banks that are aligned with their principles and convictions. Banks that have values that they feel connected with. At Lombard Odier, our privately-owned structure and DNA of innovation and sustainability puts us in good stead to help clients navigate uncertainty in this «new normal», as they seek to protect, grow and transmit their assets and legacies across generations

What do investors expect now?