Tag: bank

  • Technology Banker Returns to UBS

    Technology Banker Returns to UBS

    Swiss bank UBS enticed a key technology banker back, after a six-month stint at Wells Fargo.

    UBS is hiring Paul McEwen as its head of technology services. McEwen had previously overseen the Swiss bank’s cloud services before leaving six months ago for Wells Fargo, which hired him as head of the infrastructure.

    He will be back at UBS next month, the newswire reported, and report to Mike Dargan, who was recently elevated into UBS’ top management.

    Dargan now oversees technology as well as UBS’s group corporate services. CEO Ralph Hamers has called the new job crucial in differentiating UBS.

  • UBS Remains in Race for Dutch Asset Manager

    UBS Remains in Race for Dutch Asset Manager

    The Swiss bank is among the suitors remaining for Dutch asset manager NN. The competition for NN is strong – but UBS may have an ace up its sleeve.

    The sale of Dutch money manager NN is entering the next round with UBS, DWS, Prudential, and U.S.-based Nuveen submitting bids. None of the reported suitors nor the target commented.

    The potential acquirers are in the midst of due diligence, according to the newswire, though the deadline to place bids for the 300 million euro ($363 million) asset manager is July 1. The other firms which had expressed interest in buying – including Allianz, Generali, and The Royal London Group – have retreated.

    NN aims to take in as much as 1.6 billion euros by selling. UBS has somewhat of an inside track on NN because ING spun it off in 2014 – under then-CEO Ralph Hamers, who moved to the UBS top job last November.

  • Bank of Singapore Loses Russian Heavyweight

    Bank of Singapore Loses Russian Heavyweight

    A key private banker covering the Russian market has left Bank of Singapore.

    Vadim Bondarev, head for Russia and Eastern Europe, is leaving Bank of Singapore (BoS), sources familiar with his exit said.

    A spokesperson from the bank confirmed this information.

    Bondarev joined BoS in 2014 and was responsible for covering ultra-high-net-worth clients from Russia and CIS. He lately relocated from Singapore to build up the European headquarters of BoS in Luxembourg.

  • Ex-J.P. Morgan Exec Joins UBS Private Markets Unit

    Ex-J.P. Morgan Exec Joins UBS Private Markets Unit

    UBS Global Wealth Management has hired a former J.P. Morgan executive to join its direct investment group.

    Edith Chan joins UBS Global Wealth Management as its Greater China head of direct investment group distribution, according to an internal memo effective June 21. A spokesperson for the bank confirmed the hire.

    Chan rejoins the Swiss bank after previously serving in a similar role as its Greater China head of private markets distribution. She was most recently with J.P. Morgan where she also focused on private markets between 2018 and 2020. She previously worked with various private banks and asset managers including HSBC Private Bank and Deutsche Bank.

    UBS’ direct investment group focuses on investing in private companies via direct participation in primary and secondary equity share placements.

    It is also active in private debt and credit placements as well as real estate and infrastructure funds.

    UBS sources such deals globally from its investment bank, asset manager, and network of blue-chip financial sponsors.

  • UOB Pilots Digital Signature Authorization

    UOB Pilots Digital Signature Authorization

    The initiative will remove one of the roadblocks – the need for physical signatures – in fully digitalizing the documentation process.

    UOB is starting a 12-month trial to test the use of Government Technology Agency’s (GovTech) Sign with Singpass among its retail and corporate customers, which will be used to confirm transactions such as individual wealth planning services and the PayNow Corporate application using a customer’s digital signature, the bank announced on Thursday.

    The features feature enables customers to use Singpass – the digital identity for Singapore residents that is identifiable and uniquely linked to the user – to sign electronic documents digitally via the Singpass app.

    The bank said it is pushing this innovation as research shows that COVID-19 has accelerated the move to online services, with more than 65 percent of customers expecting banking services to be digital by default.

    The change in customer expectations and experience during COVID-19 has made it imperative that we explore and extend our digital capabilities across more of our financial services and products, Susan Hwee, UOB head of group technology and operations, said in the announcement.

    UOB plans to expand the service to include more of its products and services for both the retail and wholesale segments in Singapore, and to expand its electronic signature capability to the region from 2022.

    One benefit from the move to e-signatures is its reduction of paper usage – more than 2 million multi-page hardcopy documents each year, which in turn will save more than 700 trees per year, once rolled out across its markets.

  • Hong Kong Explores Central Bank Digital Currency

    Hong Kong Explores Central Bank Digital Currency

    The Hong Kong Monetary Authority is exploring the feasibility of issuing a digital currency for the city, joining central banking efforts worldwide to create electronic money.

    A paper exploring the feasibility of issuing a retail-focused central bank digital currency (CBDC) will be delivered within 12 months, according to the HKMA at a recent media briefing.

    Issues that will be considered in the paper include potential use cases, data privacy, anti-money laundering standards, and more.

    In addition, HKMA officials also announced a new trial to explore how Hong Kong residents can top up a digital yuan wallet using the city’s local payment system.

    People are now a lot more used to digital payments and if other central banks are exploring possible use cases for CBDCs you have to try out to see whether you can make it successful, said HKMA chief executive Eddie Yue at the briefing.

    This marks the second stage of e-CNY trials in Hong Kong following a smaller scale trial also focused on the usage of digital yuan wallets in Hong Kong.

  • DBS Kicks Off Business at Chinese Securities JV

    DBS Kicks Off Business at Chinese Securities JV

    DBS’ securities joint venture in China will officially commence business operations after receiving its license from the mainland regulator.

    Securities joint venture DBS Securities (China) will kick off operations, according to a statement, effective immediately after receiving its securities business license from the China Securities and Regulatory Commission.

    The joint venture will operate brokerage, securities investment consulting, securities underwriting and sponsorships, as well as proprietary trading.

    DBS joins other global banks to capitalize on China’s market-opening especially with regards to the securities business where the likes of J.P. Morgan and Goldman Sachs are seeking to obtain full ownership of their joint ventures.

    Today, DBS Securities is honored to become the first Sino-Singapore securities joint venture, said DBS group chief executive Piyush Gupta. We hope to continue to facilitate China’s economic growth and look forward to contributing to its ‘Dual Circulation’ strategy.

    DBS Securities currently has a registered capital of 1.5 billion yuan ($230 million) and is majority-owned by DBS (51 percent). Other shareholders include Donghao Lansheng Investment Management (24.67 percent), Shanghai Huangpu Investment Holding (13.33 percent), Shanghai Huiyang Asset Management (6.5 percent) and Shanghai Huangpu Guidance Fund Equity Investment (4.5 percent).

  • Standard Chartered Private Bank Loses Managing Director

    Standard Chartered Private Bank Loses Managing Director

    Standard Chartered has lost a managing director and senior private banker in Hong Kong.

    Phoebe Chow has left Standard Chartered Private Bank, sources said after more than four years with the British lender.

    When contacted, a spokesperson for the bank declined to comment on the exit.

    Chow joined Standard Chartered Private Bank in 2017 to oversee various client markets including the Philippines and Taiwan. Previously, she was a Singapore-based team leader at Credit Suisse where she worked for more than eight years.

    Standard Chartered’s private banking arm has effectively fallen under a new structure this year after it merged with retail banking and wealth management into a single consumer, private and business banking (CPBB) unit.

    Standard Chartered Private Bank was under the watch of CPBB chief executive Judy Hsu after its former head Dider von Daeniken left last year until the recent replacement hire of ex-UBS banker Raymond Ang two months ago.

  • Bank Jago Partners Mambu and Google Cloud for Digital Bank

    Bank Jago Partners Mambu and Google Cloud for Digital Bank

    The strategic partnership allows the bank to operate in the cloud in Indonesia, where banking data must remain in-country, according to an announcement this week.

    The digital bank will use Mambu’s SaaS banking platform and Google Cloud to offer new services to meet the needs and demands of Indonesian customers.

    Bank Jago launched its smartphone app in April 2021 in Indonesia, home to the fourth-largest unbanked population globally.

    Its service offerings include everyday transactions and payments, and the bank has plans to branch out into SME lending.

    Bank Jago believes that technology is not only providing new experiences to its customers, but it also enables the bank to operate efficiently, and to constantly create innovative breakthroughs, Kharim Siregar, Bank Jago president director, said in the announcement

    Formerly known as Bank Arto, Bank Jago is backed by the likes of super app Gojek, which recently increased its stake in the lender, as well as Singapore state investor GIC.

  • HSBC Splits Top APAC Role

    HSBC Splits Top APAC Role

    The bank’s headquarters in Central will be open to all employees from Monday, as the fourth wave of Covid-19 infections ease in the territory.

    Staff will be able to return to their desks subject to seating capacity plans in individual departments, citing an internal memo seen by the newspaper.

    Businesses and functions are encouraged to determine appropriate in-office and remote working ratios for their teams based on new ways of working,» the memo said. Staff who choose to work from home for personal or family reasons will be allowed to do so.

    The bank’s headquarters have been closed since March, after several staff working there tested positive for Covid-19.

    The British lender has embraced flexible working, and recently changed its human resources guidelines to allow home-based remote working for as many as four days a week.

    In Singapore, where the bank employs some 3,300 staff, its Future of Work plans are underpinned by ensuring customer focus; flexibility for how, when, and where employees work; and ensuring that its offices are designed and used to build collaboration and networks.

    Statements issued by multiple global banks in Hong Kong have indicated gradual resumption towards normal operations after months of tightened social distancing measures.

    HSBC is among financial sector firms that have joined the city’s push for wider adoption of vaccination. The bank is offering Hong Kong-based employees one day off per dose of vaccine received – a benefit entitled to even previously vaccinated staff.

    In May, Hong Kong authorities said senior executives of financial firms in the city apply for exemptions from the compulsory quarantine arrangements when they return or travel to Hong Kong.

  • J.P. Morgan Seeks Full Ownership of Chinese JV

    J.P. Morgan Seeks Full Ownership of Chinese JV

    J.P. Morgan is seeking regulatory approval to obtain full ownership of its mainland Chinese securities joint venture.

    J.P. Morgan has applied to regulators for approval of its full ownership of the securities joint venture, according to a report citing China chief executive Mark Leung.

    The bank currently has a 71 percent stake in the unit after last boosting ownership in November 2020.

    J.P. Morgan joins Goldman Sachs in the race to become the first to obtain full ownership of their securities unit in mainland China.

  • UBS’ Insourcing Revolution Shakes Cognizant

    UBS’ Insourcing Revolution Shakes Cognizant

    Outsourcing giant Cognizant has had to let dozens of staff in Switzerland go as UBS continues its policy under CEO Ralph Hamers of bringing entire IT departments back in-house. Both the major Swiss banks, UBS and Credit Suisse are long-standing Cognizant customers. UBS used to pay Cognizant up to $330 million a year for IT services and business process outsourcing. Credit Suisse spends around $220 million a year with Cognizant Services, $100 million of it in Switzerland.

    The major IT consultancy and outsourcing companies make immense amounts of money from the financial sector, and U.S.-based Cognizant, one of the sector’s top companies globally, has sales of $5.6 billion to the finance sector, a good third of its total turnover.

    However, the relationship between UBS and Cognizant has been turning frosty in recent years, and in Switzerland there has been a falling out. UBS last year elected not to renew a service contract, with effect from the end of April. This meant that at a stroke Cognizant lost half of its business with UBS – around $60 million worth.

    As a result, Cognizant faced making 70 to 80 consultants working for UBS redundant. The company had had up to 200 staff under contract to UBS. The bank took on around a third of them and another third were taken on by other IT services companies such as Epam and Infosys.

    Neither Cognizant nor UBS would comment on the termination of the contract.

    Two separate said there were two reasons for UBS dropping Cognizant. In May 2020 the U.S. company was the victim of a ransomware attack that wrecked its efforts to provide IT services from home offices.

    UBS then canceled its global contract for several years of IT services early, with effect from the end of April this year, on security concerns. The second reason is UBS’s tendency over the last few years to take IT services back in-house.

    In 2018, the bank unilaterally canceled its long-standing partnership with Cognizant in India. UBS sold its «India Service Center» with around 200 staff to Cognizant in 2009 and at the same time signed a contract for several years of services, which was first of all not extended and then canceled entirely.

    Competition between outsourcing vendors is extremely fierce and the pressure on prices is enormous. UBS constantly beat Cognizant and other IT service providers down on price.

    Mike Dargan, who became UBS’s chief information officer in 2016, reversed the bank’s strategy of outsourcing. The massive acceleration in innovation and digitalization in the financial sector forced Dargan to the conclusion that IT development and services should be dealt with by in-house departments in order to keep up.

    Chris Gelvin, a UBS veteran who has been head of group operations since 2018 and was in January this year also appointed chief transformation officer, is responsible for implementing this strategy.

    In the meantime, Dargan has risen within the ranks of top management to become COO as well as chief digital and information officer. The step-by-step ending of the vendor contracts and the in-housing strategy are completely in line with Hamers’ thinking.

  • HSBC Names Top Investment Banker in Hong Kong

    HSBC Names Top Investment Banker in Hong Kong

    The bank has landed a permanent replacement for Peter Enns, its former co-head of advisory and investment banking and advisory.

    HSBC is hiring veteran banker Matthew Ginsburg as global co-head of its advisory and investment banking business, based in Hong Kong, according to a report on Friday, citing people familiar with the matter

    Ginsburg, who was most recently Asia Pacific chairman for Fitch Ratings, is no stranger to the region, having been based in Hong Kong since 1992. He spent stints at Morgan Stanley and Barclays, where he led the British lender’s investment banking expansion across the region.

    Ginsburg will work closely with co-head Adam Bagshaw in the role. Enns relocated with HSBC to Hong Kong in 2020, but left soon after for Chubb, where he is chief financial officer.

  • DBS Expands Digital Exchange Offering

    DBS Expands Digital Exchange Offering

    DBS expands the offering on its digital exchange with its first-ever bond issuance via security token offering.

    DBS has issued a S$15 million ($11.35 million) bond through a security token offering (STO) on its digital exchange, according to a statement.

    The bond has a six-month tenor with a coupon rate of 0.60 percent per annum.

    The issuance was executed via private placement and DBS was the sole bookrunner for the transaction.

    According to the bank, asset tokenization enabled the digital bond can be traded at a significantly smaller minimum of S$10,000 per board lot, further driving liquidity and lowering barriers for investor access.

    While most bond tokenization exercises announced in Asia to date tend to be repackaged forms of a conventional bond issue, the current transaction directly combines existing legal and tax infrastructure requirements with a direct issuance on the digital exchange in smaller lot sizes, said DBS’ global head of fixed income Clifford Lee.

    This bond token structure was only made possible because of the progressive development of Singapore’s legal and tax infrastructure, which can facilitate more STO issuances to broaden and deepen our capital markets.

    According to DBS’ group head of capital markets Eng-Kwok Seat Moey, the bank expects more issuers to leverage asset tokenization for fundraising.

    Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors, he said.

    We expect asset tokenization to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fundraising exercise which we believe will boost Singapore’s ambitions to be a digital asset hub in Asia.

    DBS’ digital exchange – DDEx – launched in December 2020 with an initial offering that covered cryptocurrency trading.

    Daily trading volumes have increased 10-fold compared to the initial week of the launch, the bank said, with over 120 participants on the exchange and S$80 million of digital assets in custody.

    Earlier this month, the bank launched a crypto trust offering that combined wealth planning services with emerging digital currencies.

  • Morgan Stanley Increases Ownership in China JVs

    Morgan Stanley Increases Ownership in China JVs

    Morgan Stanley is the latest global bank to add exposure to mainland China’s financial sector with increased ownership in two joint ventures.

    Morgan Stanley will buy stakes in its securities and mutual fund joint ventures, according to a company filing with the Shanghai Stock Exchange.

    We are excited by opportunities to significantly expand our onshore securities and asset management businesses, which further strengthen our position to provide the best advice and services to our clients, according to a spokesperson for the bank.

    China Fortune Securities is the planned seller of a 39 percent stake in Morgan Stanely Huaxin Securities and its entire 36 percent stake in Morgan Stanley Huaxin Fund Management Company to the American lender for 958.6 million yuan (US$150 million), according to the filing.

    If the sale succeeds, Morgan Stanley would effectively own 90 percent of the securities joint venture, with China Fortune retaining the remaining 10 percent stake, and 85 percent of the fund joint venture.

    Global banks continue to take advantage of the opening up of China’s financial sector with Goldman Sachs, most recently, receiving preliminary approval to establish a wealth management joint venture with ICBC.