Bank of Singapore has set an ambitious target for client asset growth in Hong Kong. Greater China private banking head Rickie Chan told finews.asia that progress is «on the right track», including front office recruitment for 2024.

Earlier this year, Bank of Singapore – OCBC’s private banking unit – announced that it would aim to grow its assets under management in Hong Kong by 50 percent between end-2023 and 2026. It hired Rickie Chan, former Hong Kong branch CEO of the now-defunct Credit Suisse, to fulfill this mandate.

In a conversation with finews.asia, Chan, Greater China head of private banking and Hong Kong branch CEO, said that progress was underway and that Bank of Singapore was «on the right track» to achieve its goal with a focus on two major priorities.

Talent Recruitment

Bank of Singapore’s first priority in meeting the target is to hire quality talent for both the front office and support functions. In the front office, the private bank has already increased the number of relationship managers in Hong Kong by 20 percent, though no absolute figures were disclosed.

«We are now taking a pause in hiring for the front office to integrate the new talent and may resume next year,» Chan said.

Platform and Products

The bank's second priority is to keep investing in its platform and product offering.

For example, it has expanded its alternatives capabilities with deal access to both large traditional names and Asian names where it may have a competitive advantage compared to international banks due to relatively stronger familiarity.

In terms of technology, an upgraded version of the bank’s mobile app has been rolled out with usage by 90 percent of clients. Since the launch, the number of monthly active users rose 30 percent while trades placed online in the first four months also grew by 50 percent.

One-Group Collaboration

In addition to efforts internally, Chan also highlighted the potential growth driver from greater so-called «one-group collaboration» with Bank of Singapore’s parent, OCBC. A dedicated unit has been formed to take advantage of such synergies and the bank is looking to add more people into this unit moving forward.

«Our one-group collaboration is an important growth pillar for us and there are significant synergies between Bank of Singapore and OCBC that can be tapped on, such as client referrals, business referrals, deal sourcing and talent mobility,» Chan explained.

Hong Kong Hub Outlook

Despite the progress, there are challenges in Hong Kong as the hub undergoes various headwinds, including a slowing economy in China and geopolitical risks. On the growth slowdown, Chan noted that «it may not necessarily be a bad thing».

«Five or 10 years ago, a typical Chinese client might only be interested in a product that can deliver returns of 20 or 30 percent. Today, they are open to deposits with a single-digit interest rates. This shift in expectations helps us position their portfolios better going forward,» he said.

«Hong Kong has been through ups and downs such as the 1997 Asian financial crisis, SARS outbreak in 2003, the 2008 global financial crisis and the recent Covid pandemic. Each time, it has proven that it can adapt to new conditions and become stronger. As a Hongkonger, I am very optimistic, and I bet my career on Hong Kong’s future.»