Hardly any other sector is currently confronted with new requirements as strongly as the financial industry. The COVID-19 pandemic has shown that new challenges also create new opportunities.
By Karen Tan, Head of Private Banking at VP Bank Ltd Singapore Branch
50 years ago, in 1970, VP Bank put the first ATMs into operation at its headquarters in Liechtenstein to meet then-banking needs. Today’s trends, starting with credit cards, cashless payments, to digital currencies and tokenization of products, is moving in a completely different direction. What remains are the changing needs of today’s banking consumers.
But the current changes are far more profound, not only because of the Covid-19 situation. The financial industry, and in particular private banking, is facing new groundbreaking challenges - especially in Asia.
Social Change as a Chance
The world population is getting older and wealthier. According to current calculations, more than a third of the population in 55 countries will be over 60 years old by 2050. At the same time, wealth will constantly increase over the next few years.
The fact that the population is getting older has a major impact on private banking. As assets increase, large sums of money are expected to be inherited. This is linked to many issues that require the bank to offer holistic solutions that meet individual needs.
Client Communication in New Ways
Due to artificial intelligence and the use of data analytics, customer communication becomes more personalized and, thanks to clever interface solutions, business transactions are processed more efficiently. Asian clients are «online» almost around the clock and want information and advice in real-time. Our solutions focus on the customer experience: clients expect intuitive operation and a high level of convenience when using our services.
When it comes to financial solutions, clients expect new and tailored offerings. At the same time, they want a professional partnership based on trust. Private Banking remains a people's business and it is important to find the balance between technological solutions and personal contact. Customer processes will also become more efficient – and this will help to reduce the number of forms and queries to be submitted, therefore increasing convenience for the client.
The Need For Sustainability
Current developments show how quickly and suddenly a crisis can occur, how easily and fast a system can be vulnerable and that one must proactively take into account many risks - which requires careful planning and to act accordingly with foresight. Recent experience also shows that sound liquidity management, an in-depth examination of the personal risk-return profile and clean diversification are of crucial importance.
The issue of sustainability shows how changes in needs affect concrete products. We can clearly see that products geared to sustainability are becoming increasingly popular. For many years, operational sustainability has played a major role at VP Bank. Now, sustainability criteria form the anchor for our investment philosophy «Investing for Change.» New products and sustainable investment funds are added to the selection process and are hence served as an investment opportunity for our clients.
Seizing Opportunities
Private banking is facing a tough test. Rapidly developing digitalization, the low-interest-rate environment, pressure on margins and changing social demands in Asia are increasing the complexity of our environment. As a trustworthy, competent sparring partner for clients, advisors can provide clarity and orientation. Human values such as honesty, openness and fairness are fundamental in investment consulting and create a basis of trust.
In times such as these, VP Bank stands by its clients and supports them in all aspects of asset management and wealth planning. As the Asian branch of the Liechtenstein-based VP Bank Group with over 60 years of private banking expertise, we are strongly anchored in financial consulting and financing, while at the same time offering our international network.
Thanks to our client-centric business philosophy, we offer tailor-made solutions that are consistently geared to the individual needs and starting positions of our clients. Working closely as a strategic and reliable partner to our clients, we help them to grow and protect their wealth and seize future opportunities as-and-when they arise.
About VP Bank Group
VP Bank Ltd was founded in 1956 and, with its 979 employees (908 in full-time equivalents) as of the middle of 2020, ranks amongst the largest banks in Liechtenstein. Today, VP Bank is present with offices in Vaduz, Zurich, Luxembourg, Singapore, Hong Kong and Road Town (British Virgin Islands). VP Bank Group offers tailor-made asset management and investment advisory services to private clients and financial intermediaries. Due to the open architecture, clients benefit from independent advice: The products and services of leading financial institutions as well as in-house investment solutions are included in client recommendations. VP Bank is listed on the Swiss stock exchange SIX, and has an «A» rating from Standard & Poor’s. The bank has a sound balance sheet and capital base. Its anchor shareholders take a long-term view, guaranteeing continuity, independence as well as sustainability.
About VP Bank Ltd Singapore Branch
VP Bank Ltd Singapore Branch is a boutique private bank with a client-centric business philosophy. With a presence in Singapore since 2008, it is the Asian branch of the Liechtenstein-based VP Bank Group.
VP Bank Ltd Singapore Branch provides specialized wealth management solutions and family office services for high-net-worth clients and professional asset managers and is dedicated to the protection and growth of clients’ wealth. The bank offers a holistic suite of services in wealth management. Apart from private wealth management, VP Bank Ltd Singapore Branch provides comprehensive services for asset managers and other financial intermediaries. The service offering comprises a trading platform, banking services - including e-banking and mobile banking - and operational support. Partnership arrangements with professionals include tailor-made investment advisory, discretionary management solutions, and custodian services.
VP Bank was awarded Best External Asset Manager Service Provider and Best Private Banking Regional Partnership at Greater China WealthBriefingAsia Awards for Excellence 2020 and Best Asia EAM Service Desk at Citywire Asia EAM Desk Awards 2020.
