HSBC’s Asia private banking head Lok Yim spoke to finews.asia about growth and increased internal collaboration in 2024 alongside a focus on improving efficiency through tech and cultural changes.
In the first three quarters of 2024, HSBC Global Private Banking added $39 billion of invested assets in Asia to reach a total of $205 billion. According to Lok Yim, regional head of global private banking, APAC, this was driven by growth in a myriad of areas.
«Capital markets performed well as clients increased diversification versus previous years when we saw more leveraged, concentrated home bias. In our annuity business, we saw strong growth in discretionary and advisory mandates, including Prism Advisory. We have also been deploying our balance sheet to provide structured lending in stock financing or for illiquid assets,» he said in an interview with finews.asia.
Onshore Businesses
On new assets, the private bank also saw inflows from its onshore businesses in mainland China, Taiwan and India, in addition to its two main Asian hubs in Hong Kong and Singapore.
In mainland China, the bank has been ramping up its offering, including the launch of margin financing for high net worth clients in November 2024 by its Qianhai securities arm. In Taiwan, it has full product capabilities from capital markets and discretionary mandates to margin financing. And in India, HSBC relaunched its private banking unit in mid-2023 after exiting in 2015 and has since built a comprehensive shelf of more than 500 mutual funds.
«Our onshore businesses in mainland China, Taiwan and India are growing fast,» Yim added.
Multi-Shoring Trend
Outside of Asia, Yim also sees demand for other booking centers with Asian desks in London and Switzerland.
«We continue to see the trend of multi-shoring. This is a function of not only diversification but also lifestyle as many families have children that study abroad,» he said.
One Bank Approach
One of the drivers of growth has been the private bank’s ability to leverage the overall group’s capabilities to achieve greater internal collaboration, also known as the «one bank» approach.
«We have seen strong internal collaboration across the board. There have been client referrals from retail and commercial banking. We’ve worked with the investment bank on single stock financing, the global markets division on private credit deals, HSBC Asset Management on discretionary mandates and alternative investments, the retail bank on credit cards and HSBC Life on wealth planning,» Yim shared.
Tech and Culture Change
According to Yim, the private bank placed emphasis last year on improving efficiency.
«2024 has been a year of productivity and optimization. We have been doing this through changes in technology and culture,» he explained.
«We deployed Microsoft Dynamics 365 to improve sales management. In addition to flattening our structure, we have also asked ourselves how we can make decisions faster. How can we shorten meetings? How do we kill PowerPoints? How do we ensure meetings are about decisions and not just updates?»
Restructuring Impact
Under new group CEO Georges Elhedery, HSBC has introduced a global overhaul that saw a restructuring into four businesses: Hong Kong, UK, corporate and institutional banking, and international wealth and premier banking. A raft of leadership changes have since occurred, including the exit of global private banking and wealth CEO Annabel Spring who has been replaced by Gabriel Castello as interim head.
While structures may come and go, Yim notes that HSBC’s private banking focus in the region will remain unchanged.
«The restructuring doesn’t change the fundamentals of the private banking business,» he said. «We will be celebrating our 160th anniversary in Hong Kong this year. We have always been the bank for Asian wealth and 160 years from now, we will continue to do the same. HSBC will continue to focus on Asian wealth and we will build on the investments we’ve made in Asia.»
HSBC will announce its results for the full year of 2024 on February 19.
