As Asia's potential for private banking became apparent, many competitors entered the market. Surprisingly, many wealth management firms thought they could establish their private banking business in Asia within the shortest period of time and be successful.
But ultimately, most of them have not stayed here for very long – many players left during the Asian Financial Crisis at the end of the 1990s. We decided to stay, even when times were tough.
Is this a philosophy that you follow at LGT?
Absolutely. This is something that I have learnt in the many years that I have been with LGT. You cannot succeed in Asia or in any other market with short-term thinking. You have to be patient and think, plan and act for the long-term in order to deliver top performance and excellent personalized service. It takes time to understand how the market works and to adapt or establish your services accordingly.
«We have been present in Asia since 1986»
Looking back, we have been in a very fortunate situation at LGT. We have been present in Asia since 1986 and could thus gather important experience locally at a very early stage. We also realized quickly that our clients know exactly what they want.
This is something that we should value as a bank. We have to align our services and products with our customers' needs on an ongoing basis. Compared to 25 years ago, for example, we now serve more multi-country families, as opposed to single-country families. Their needs are different; and as such, we have to develop the right services for them.
What are your clients looking for today? Is the stereotype still true that Asian private banking clients are more demanding than the typical European client?
When it comes to investments, our clients expect us to perform well. A trusting, personal relationship with their advisor and the bank itself is also very important to them. But this is not a matter of culture or geography. Performance and relationships are of utmost importance to all private banking clients, whether in Asia or Europe.
«Here in Asia, our clients are fast moving»
The difference between clients in Asia as opposed to Europe lies rather in the way in which we give advice to our clients. Here in Asia, our clients are fast moving. They are very well informed and more likely to make spontaneous decisions, thus they expect us to respond and act quickly.
With very demanding clients on their hands, relationship managers must be highly trained and very experienced. How big is the challenge of finding the right people?
The quality of the banker and of the client advice are key factors for success in the Asian markets. After all, private banking is a people business. This means that every bank is looking for well-trained, experienced employees – and they are rare.
«With the Princely Family of Liechtenstein as owners, we can promise a great deal of stability»
When we look for an addition to our team of relationship managers, we pay great attention to integrity, professionalism and motivation. In return, we offer a highly professional working environment and a unique ownership structure. With the Princely Family of Liechtenstein as owners, we can promise our employees a great deal of entrepreneurial freedom as well as stability.
LGT Private Banking Asia has had the distinction of experiencing strong growth not only within the past years but decades. When I joined LGT's former representative office in Hong Kong in 1994, we were a team of 15 people. Today, we are one of the leading private banks in the region with more than 800 employees in Hong Kong and Singapore. These factors appeal to our relationship managers and staff.
Indeed, LGT has had great success in Asia. How do you explain your growth record?
I think it was a mix of choosing the right strategy, having a clear business model and making smart decisions. These decisions include establishing our Singapore operations in 2003 and applying for a banking license in Hong Kong in 2011 to open a branch there. And we were lucky.
«Today, every third LGT client is booked in Asia»
For example, at just the right time, we had the chance to acquire ABN Amro's Private Banking Business in Asia and the Middle East. With that acquisition, we doubled our business in the region. Today, every third LGT client is booked in Asia.
And what does the future hold for LGT in Asia?
We are well-positioned in the region and known as a private bank that offers excellent service. In the next years, we want to continue to grow organically and to strengthen our target markets. However, what is by far more important than growth is our focus on our customers and their needs.
Henri Leimer, 60, is a veteran of Asia's private wealth management industry. The CEO of LGT Private Banking Asia moved to Hong Kong with his wife in 1989 as a portfolio manager and joined LGT in 1994. Leimer has three adult children, all of whom were born and raised in Hong Kong. He is also Honorary Consul of the Principality of Liechtenstein in Hong Kong.
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