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It varies according to seniority. A junior banker will normally start with a roughly $50 million book, then it advances. You can also do the math: in Asia, Credit Suisse’s 600 relationship managers oversee $200 billion (editorial note: an average of $333 million per private banker).

«They are called hunters in Asia»

That’s a relatively high average when you consider it also reflects employees who have only been with Credit Suisse a very short time.

Is client acquisition in Asia generally different than in Switzerland?

I’ve never worked in private banking in Switzerland, only in investment banking. I can say that we’ve grown so strongly in Asia because we’ve hired very ambitious people and consistently invested in their education. They are called «hunters» in Asia. Good advisers primarily extend their network through their existing clients. That’s born out by the fact that 40 to 60 percent of our net new money is from existing clients.
 
How?

Clients often don’t want to work with five or six different banks anymore. It’s too complex and isn’t worthwhile for regulatory reasons. They limit themselves to two or three firms. As a bank, we have to prove that the client should choose us.

«We’ve changed our business model dramatically in recent years»

Asian clients are considered as somewhat more of a «gambler» mentality because of their propensity for trading against collateral. But banks want to sell discretionary mandates which help them manage portfolios more sustainably.

How does Credit Suisse reconcile this?

We’ve changed our business model dramatically in recent years. I can remember in the early 2000s nearly being thrown out when we offered Asian clients mandates. That’s no longer the case, especially since the world has become more complex.

«I’m not revealing a big industry secret»

We don’t simply tell a client that we can offer a better return than they can. Instead, we are complementary to their financial needs and convey peace of mind on their financial matters. The time of a client wanting to control and decide everything is over. Our discretionarily managed assets have risen 20 percent in the last five years. Assets have quadrupled since we rolled out an advisory mandate in 2017.

So I wouldn’t classify Asian clients as gamblers, more as opportunistic investors want a component of buying and selling stocks on their own besides a mandates product.

Good private bankers have their price. How is Credit Suisse handling the salary spiral?

We offer market rates, but we’re not prepared to participate in every frothy exaggeration. I’m not revealing a big industry secret since unlike smaller banks, we're not forced to pay a premium to poach bankers.

We don’t pay according to a formula based on revenue but on various criteria. We want to avoid that relationship managers carry out an unnecessarily high amount of transactions to hike his or her income.

Is banking a more distinguished profession in Asia than in Switzerland?

That’s difficult for me to judge from a Swiss perspective, but our Swiss unit is also winning new clients, which speaks for its intact reputation. In Asia, the role of banks is extremely important because of the region’s dynamic growth.

«The top 20 private banks have only scratched the surface of the Asian market»

Many large domestic firms have a long history, and international ones are important for cross-border transactions – which is frequently the case due to globalization. Being represented in various markets is undoubtedly an advantage for Credit Suisse.

The perception in Asia may also be different because clients – about 80 percent of whom are entrepreneurs – permanently combine business and personal. Often, there are no clear boundaries. Dealings with banks are frequently different than in Europe.

Historically many of Asia’s rich have relied on Singapore and Hong Kong as havens. Credit Suisse has been expanding into other countries. Why? 

The top 20 private banks have only scratched the surface of the Asian market. Together, they only manage about 10 percent of an estimated $16 trillion of money in the region, according to industry studies. Those who want a bigger piece of this pie won’t be able to avoid going «onshore» in these markets, not least because cross-border or offshore banking is becoming more complex. 

«It’s interesting to note that certain main competitors of ours left the market»

Generally, offshore banking is in decline. While still growing by 6 to 7 percent, onshore banking is growing by double digits. We’ve often had an advantage of going onshore in that our investment bank is often already there, and we can build on it. 

Australia is a good example: ten years ago we began with private banking and had a dry spell because this market requires a long-term commitment – which is now paying off. 

So, you’re profitable in Australia?

Our business down under is very successful. It’s interesting to note that certain main competitors of ours left the market after their attempts to set up a sort of brokerage with local banks didn’t pan out. In that respect, we were totally disruptive. That was difficult in the initial years but proved right. Incidentally, that’s also our strategy in the entire Asia-Pacific region.

Map the journey out for me.

The expansion of our Indian onshore business is the next big project in my area. We’ve been there with more than a dozen private bankers in Mumbai for a while now, but in the past 18 months, we’ve invested in the building of our platform to roll out towards the end of this year.

«The real game-changer in coming years will be the topic of the next generation»

We hope for many synergies for our corporate clients. I have high hopes for our Indian onshore business. We want to become a dominant player. I’m convinced that India is one of the next tiger markets.  

What other plans do you have?

The real game-changer in coming years will be the topic of the next generation – or how to transfer wealth from one generation to the next. More than 70 percent of listed firms in Asia with at least $1 billion in sales are in family control.

It’s still 50 percent with companies of market capitalization of $50 billion or more. Against this backdrop, we are putting enormous resources towards not only today’s clients but their heirs as well.

What are you doing specifically?

We support the «Young Founders School», which acquaints the teenage daughters and sons of wealthy entrepreneurs with the corporate world. We also offer clients a financial education for young adult investors. Credit Suisse also sponsors an organization of young investors with 1,400 members worldwide, 400 of them in Asia.

We’re building a meaningful community to tie in the next generation. It’s not just about a satisfied entrepreneur as a Credit Suisse client. We’re striving to convince the next generation to choose us as a bank. That’s our goal.

Benjamin Cavalli, 46, was appointed to the role of Head of Private Banking South Asia in August 2018, based in Singapore. In addition, he took on the role of Singapore Chief Executive Officer from January 2017. He joined Credit Suisse in November 2009 from UBS Wealth Management, where he was the Head of Key Clients Singapore. He started his career in the Export Finance department at UBS in Switzerland in 1992 and headed the Commodities, Structured Trade and Export Finance at UBS Investment Bank in Hong Kong from 1997 to 2000, before beginning his career in wealth management. He is accredited under Financial Industry Certified Professionals (FICP) by the Institute of Banking and Finance (IBF) in Singapore.