No matter how advanced and intelligent machines become with digitalization, human interaction and trusted, personalized relationships will remain key, VP Bank's Thomas Jost says.
By Thomas Jost, Head of Intermediaries, VP Bank Ltd Singapore Branch
Ten years ago, External Asset Managers (EAMs) were practically unknown in Asia, as compared to Europe and the U.S. where they are well-established. With the rise in individual wealth, the EAM sector is rapidly expanding. According to recruitment agency Selby Jennings, Hong Kong and Singapore have a total of 160 independent asset management firms, and collectively manage $91.5 billion in private wealth as of 2017.
Outside of Singapore and Hong Kong which are known to be wealth-power hubs, there is also demand for EAMs in emerging markets such as China, Thailand, Indonesia and the Philippines, as seen by the number of foreign banks forging partnerships with onshore wealth companies to capture a share of the burgeoning pie. Selby Jennings also estimates that the HNW population is set to increase by over 40 percent every year over the next decade.
Reputable Partner in China
In line with this, the number of EAMs is also expected to increase – by 25 percent in Singapore and 50 percent in Hong Kong.
Underscoring the growing importance of the bank's Asia business, VP Bank has also teamed up with Hywin Wealth Management, offering VP Bank the opportunity to build up business activities in the Chinese market and advance VP Bank's Asia strategy together with a highly professional and reputable partner in China. In 2021, VP Bank will be intensifying the partnership with Hywin Wealth by continuously advancing business activities together in this attractive region.
Positioned to Win
At the start of 2021, VP Bank was awarded ‹Best Private Bank – Intermediary Services› in the Asian Private Banker Awards for Distinction 2020. The win is a testament to the bank’s long-standing expertise and commitment to financial intermediaries across the Asia-Pacific region. «Given the strong competition we faced in this award category, it is extremely gratifying that we won. It also speaks volumes about our solid strength especially this is the first time we participated in this award,» Reto Marx, Head of Intermediaries and Private Banking said.
Since VP Bank's foundation in 1956, the intermediary business has been our core competency. In Asia, the Bank has been collaborating with an independent asset manager for over 10 years and is, therefore, a well-established and renowned partner for financial intermediaries, who particularly appreciate the wealth of experience and modern infrastructure that the bank has to offer.
Client Advisory Services
VP Bank in Singapore commands one of the largest teams amongst banks specialized in servicing External Asset Managers and is well-positioned to serve the growing number of financial intermediaries in Asia.
Thanks to our long-standing expertise and very experienced employees, VP Bank is highly skilled in providing client advisory services. To provide intermediary clients with round-the-clock information, VP Bank offers access to the ProLink platform. ProLink contains bank-relevant information, forms, investment ideas and information on complex topics such as financial services legislation, automatic information exchange or financial market guidelines. Combined with the specialist knowledge of the asset managers and fiduciaries, a strong bundle of competencies is created.
Seizing Opportunities
VP Bank incorporates sustainability criteria into the assessment of investments. Our belief is that sustainable investment is beneficial to all investors if put into practice properly. However, there is no uniform definition. Therefore, VP Bank has developed a sustainability score that measures the level of sustainability of an investment based on different dimensions. Investors might use the score as an indicator of opportunities and risks from a sustainability perspective. And it allows a comparison between different financial products, such as stocks, bonds, or funds.
VP Bank is also keen to distinguish itself as a provider of tokenization solutions. It is no coincidence that our focus is on funds, as we already have a competence center for the structuring of investment funds. We see attractive opportunities in the area of new investment solutions and themes (private market solutions) for both intermediaries and private clients.
Trusted Custodian
The use of Variable Capital Companies (VCC) is expected to also surge in 2021. To meet client demands, VP Bank will be working on a framework to support the intermediary industry in Singapore to fully leverage the VCC structure, with VP Bank acting as its trusted custodian and execution partner.
Digital and connectivity remain integral to allow us to support our clients. As seen by the onslaught of the Covid-19 pandemic, no one is immune to disruption. The pandemic has for certainty, acted as a catalyst for businesses to quickly turn to digitalization in order to survive.
Optimal Solutions
VP Bank prides itself on its agility and nimbleness. During the onset of the pandemic, the Bank has swiftly adopted work from home practices across its global offices. With its advanced systems and digitalized processes in place, the same or even better efficiency is observed. Relationship managers were able to stay connected with clients with the use of digital communication channels, such as video conferencing tools.
At VP Bank, we are constantly looking for optimal solutions that will support the future success of our intermediary clients. Nonetheless, in an industry where clients demand a tailored and flexible approach, technology plays a complementary role to wealth managers’ activities and cannot replace them entirely. Wealth management is a personalized business built on trust and remains foremost a people business.
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.
VP Bank Ltd Singapore Branch is a boutique private bank with 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. In 2021, VP Bank was named Best Private Bank – Intermediary Services by Asian Private Banker.
