Having a physical presence is critical to growth in the Asia Pacific region and a key reason why Swissquote opened a subsidiary in Singapore, CEO Mathias Dalla Valeria says in an interview.
Mathias Dalla Valeria, Swissquote has been present in Singapore for almost four years. But isn't the market in Asia a crowded one, particularly when it comes to online trading?
Clearly, Asia Pacific is one of the largest private net worth markets in the world and growing at a rapid pace, so it only made sense for us to open a subsidiary locally four years ago. In fact, prior to opening an office in Singapore, Swissquote had been managing clients based in the region from our offices in Dubai and Switzerland.
But at a certain point, if you really want to grow a business in Asia, you must have a physical presence and that is why we have decided to have a presence in Singapore.
Why Singapore and not Hong Kong as the headquarters of Swissquote's Asia branch?
There are various reasons for this. One is certainly the regulator. The Monetary Authority of Singapore (MAS) is extremely efficient in issuing licenses, and its regulations are robust. They are also supportive of technology and digitalization. Another important factor is that they are very approachable.
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Singapore has a large Swiss community, and being a Swiss bank makes it easier to kick-start the business given we are recognized immediately. A great deal has happened in the past four years between both of the respective hubs and I can comfortably say that we made the right choice.
Who are your clients?
It is important to note that, unlike Swissquote in Switzerland, we do not onboard retail clients. We only work with accredited investors, institutional investors, and expert investors. Our focus is on B2B and B2B2C, banks, independent asset managers, single and multi-family offices, funds, and insurance providers.
As of today, we have over 70 of the abovementioned «partners» as we call them. Most of them are based and regulated in Singapore. The rest of them are spread across APAC.
Many wealthy Chinese are relocating their assets to Singapore or moving here themselves. Are you able to benefit from this trend?
Indeed, many of our Partners are using us as their custodian and broker. Overall Singapore has seen tremendous growth when it comes to attracting Chinese wealth, in particular through the various incentive schemes that the MAS has launched. As a result, the single/family office and IAM space have increased massively and are still growing at a rapid pace, and we are happy to say that some have chosen to work with Swissquote.
Does the term «Swiss» in your brand give you an advantage in Asia?
It absolutely does help. I think that having the term «Swiss» gets you into a conversation with prospects, but in the end, the product offering and the service you provide get you the actual business.
Despite the recent turbulences the Swiss financial hub has seen, they did not have any negative impact on Swissquote.
From what I can see, it is not necessarily a case of diversifying away from Swiss banks. Instead, it is more about increasing the diversification of assets and exposure across Swiss banks.
What are your goals for the next two years?
Firstly, we want to further strengthen our position in the domestic market by establishing ourselves as one of the top 5 custodians in Singapore as a booking center for independent asset managers, funds, and (multi-)family offices. After that, we will extend our reach and look for partnerships more actively throughout the wider APAC region.
In 2019, we started with a small team of five, and currently, we have a great team of 13 that continues to grow. In fact, just last week we signed off on a relatively larger office reconfiguration which will enable us to make space for seven additional employees. We have been enjoying fantastic growth rates and we need this to better support it.
What makes Singapore's financial center superior to the Swiss one?
I think they are very similar in many ways. They are both politically very stable, have both a strong and reputable regulator, and importantly, both countries have and keep investing in the talent of their workforce.
Besides that, there are various interesting incentive schemes the MAS has launched in recent years to attract wealth and investments.
What are the risks in Singapore?
One that comes to mind is costs. The cost of living, the cost of hiring talent, and the cost of compliance and regulatory complexity. It is like a chicken and egg situation. You attract all these new players and wealth, which is amazing, but the consequence of that is simply a large increase in costs.
However, the advantages of Singapore as a financial hub far exceed the disadvantages, and the future is surely a bright one.
Mathias Dalla Valeria is the CEO of Swissquote Singapore and a member of the Senior Management of Swissquote Group. He joined the bank in 2011 and worked in various departments in Zurich and Gland. In early 2014, he relocated to Dubai to help with Swissquote’s expansion strategy in the Middle East. In August 2019, he moved from Dubai to head up the B2B desk in Swissquote’s new office in Singapore, which acts as the regional booking center for its business development in the Asia-Pacific region.
