bank – Page 49 – Retail News CRM

HSBC Expands Wealth Portfolio Intelligence Service

The bank said it expanded its service to new asset classes in response to the increasing demand for reviewing the investment portfolio due to recent market volatility.

HSBC’s Wealth Portfolio Intelligence Service (WPIS), offered to its high-net-worth «Jade» segment, will add bonds, equities, currencies, cash and time deposits, the bank said in a statement on Tuesday.

The service, powered by Blackrock’s Aladdin Wealth platform, uses similar tools that institutional investors use to analyze risk exposure. The bank said that since its introduction to Jade clients in 2019, it has generated over 20,000 reports on risk insights and analysis for their unit trust holdings.

As the enhanced WPIS covers all the major elements of a multi-asset wealth portfolio, it «creates new opportunities to build resilient investment portfolios in alignment with clients’ personal risk and investment preferences,» said Greg Hingston, regional head of Wealth and Personal Banking, Asia Pacific, and head of Wealth and Personal Banking, Hong Kong, in the statement.

Higher Demand for WM Services

The bank said it is seeing increased demand for wealth management services among its affluent customers. Apart from personalized investment solutions and advisory services, Jade hopes to attract «salaried millionaires» who prioritize self-enrichment with experiential offerings and a luxury concierge.

In 2019, four Jade Centres were opened in Singapore, Hong Kong, and Shanghai. This year, HSBC opened two more Jade Centres in Hong Kong, and plans to open one in Beijing.

April 9, 2020

Banks Temporarily Close Branches Across Singapore

Banks across Singapore are closing branches due to the reduced traffic expected as a result of enhanced social distancing measures, announced on Friday to curb the spread of Covid-19.

While the financial sector was exempted from Singapore government’s order to suspend activities at workplaces from 7 April until 4 May inclusive, banks across the island announced limited operations during this period.

The Monetary Authority of Singapore (MAS) affirmed that financial services will remain open and available to all customers and counterparties in Singapore and globally.

All financial markets in Singapore remain open, and payment services are unaffected, the regulator said in a statement.

DBS will progressively close 29 DBS/POSB branches until 4 May, starting with DBS Marina Bay Sands on 7 April, followed by POSB Newton and POSB Square 2 on 9 April. The remaining 28 branches that stay open will continue to operate regular banking hours but will reserve its first hour of operation for vulnerable customers like the elderly.

The bank is also closing all DBS Treasures and DBS Treasures Private Client centers from 9 April to 4 May. Safe-deposit box access at DBS/POSB branches and DBS Treasures Centre will be available on Wednesdays by appointment. Full SME banking services will be available at branches in areas with higher trade and SME footfall. In addition, trade counters at Marina Bay Financial Centre, Jurong Gateway and Towner Road will also remain open, the bank said.

OCBC Bank will close 22 of its 46 branches from 9 April to 4 May. Among the 24 branches that remain open are the 19 that offer Sunday banking services, as well as the five that offer safe deposit box services, with no changes to their banking hours. Its Trade Service Centres at OCBC Centre South and OCBC Tampines Centre 2 remain open.

The bank said it has seen a 35-percent uptick in customers using digital solutions for their banking needs during this period and urged more to use its mobile and Internet banking platforms to minimize the need to visit bank branches.

In a statement released on Friday, UOB said it «remain[s] committed to providing the banking services that are essential to them during these trying times.»

The bank is expected to announce later today the details of branches that will remain open during this time.

Standard Chartered is closing half of its 16 branches, while Maybank has closed six of its 15 branches. Seven of HSBC’s 13 branches in Singapore will shut, while Citi has closed eight branches, with its remaining locations operating revised hours, including a dedicated hour of vulnerable customers.

April 8, 2020

HSBC, StanChart to Scrap Dividends on BOE Orders

Recession fears drove the Bank of England to call the U.K.’s largest banks, including HSBC and Standard Chartered, to scrap dividends and share buybacks.

Alongside Lloyds, Royal Bank of Scotland and Barclays, the two largest British lenders in Asia made statements to temporarily halt shareholder payouts and share buybacks for 2019 and throughout 2020 following discussion with the Bank of England. The five largest banks in the U.K. had originally planned for 7.4 billion pounds ($9.3 billion) in dividend payments over the next two months.

In addition, the BoE also ordered banks to scrap cash bonuses to prepare for a likely recession.

The PRA also expects banks not to pay any cash bonuses to senior staff, including all material risk-takers, and is confident that bank boards are already considering and will take any appropriate further actions with regards remuneration over coming months, said the BoE’s head of prudential regulation authority Sam Woods in a statement.

Whilst workers will undoubtedly feel the brunt of the economic malaise, numerous efforts are being made to shift some of the burden to others including corporates and their shareholders.

In addition to dividend cuts, banks have also committed to retaining jobs with HSBC, as well as a raft of global banking giants, recently announcing temporary halts to job cutting. The measures will retain costs that were due for unloading and over 60,000 jobs.

April 3, 2020

Citi Extends Relief Payouts to Hong Kong

Lower-income staff at Citi will receive payouts in line with chief executive Michael Corbat’s call to extend global support during the crisis.

Hong Kong-based employees with an annual base salary of HK$470,000 (US$60,622) or less will receive a one-time payment of HK$8,000 ($1,032). This follows the bank’s announcement last week to provide economic support to 75,000 staff globally including $1,000 to each worker in the U.S. with an annual salary of $60,000 or below.

This initiative is for colleagues who are more likely to face economic hardship in the current situation,» said Angel Ng Yin-yee, Hong Kong and Macau chief executive at Citi, in a statement. «We hope that our support will help lighten their load as they cope with other challenges and family priorities during this time.»

Citi also made a similar announcement in Singapore, highlighting relief measures to support retail and institutional clients such as interest and fees waivers, tenure extensions, alternative settlement arrangements, and loan payment reduction programs. And in support of the Singapore government’s latest financial relief program, Citi will also offer clients the option to convert outstanding unsecured balances from their Citi credit cards into low-cost term loans.

«We recognize the financial stress to our clients as a result of the COVID-19 situation,» said Amol Gupte, ASEAN head and Singapore country officer at Citi, expressing support for clients and the city-state’s government.

For the time being, global banks continue to demonstrate support for the global economy, especially the economically vulnerable, amidst a persistent coronavirus pandemic. In addition to payouts or loan-related relief, the industry has committed to temporary job cut halts, dividend cancellations and even free online classes for homebound children.

April 3, 2020

DBS Adds Online Classes to Relief Portfolio

The Singaporean lender continues to provide innovative digital support to locals affected by the ongoing pandemic alongside financial relief. To help cope with the crisis, DBS will offer free online supplementary classes for primary and secondary school students. In terms of financial relief, home loan payment relief and free Covid-19 relief insurance coverage will be provided, the latter of which has already attracted 600,000 customers.

And for SMEs, the bank rolled out a 6-month principal repayment moratorium on property loans and collateral-free digital business loan of up to S$50,000 ($35,000).

While the Covid-19 situation is an unfolding one, it is apparent that some sectors and individuals are being hit particularly hard,» said Shee Tse Koon, Singapore country head at DBS, adding that more relief measures will be announced next week. As the largest bank in Singapore, DBS is committed to joining the industry to help Singaporeans and SMEs tide through these challenging times.

More than just providing pure financial support, DBS has stood out for its creative approach to providing potentially effective relief.

In addition to online classes, the bank recently rolled out a homegrown digital food delivery platform to help its F&B SME client base boost revenues in dire times of need. Interested users will be supported by the bank for end-to-end processes from marketing and e-menus to payment and physical delivery.

April 2, 2020

Xiaomi-Backed Virtual Bank Announces Hong Kong Pilot

AirStar Bank has announced the launch of a pilot trial in Hong Kong, which will be conducted within the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox.

About 2,000 friends and families of the staff of Airstar, Xiaomi Hong Kong and AMTD Group will be onboarded to the virtual bank to gather user feedback and gauge requirements ahead of a full roll-out, according to an announcement by the bank on Tuesday.

The bank is a joint venture virtual bank between Chinese electronics company Xiaomi and AMTD Group – Asia’s largest independent corporate finance and advisory house.

According to the announcement, Airstar will offer tiered-pricing savings deposits and time deposits, and is promising up to 1 percent per annum for HKD saving deposits between HKD 500,000 ($64,500) and HKD 1,000,000. It will also offer unsecured lending products at transparent pricing with interest accrual on a daily basis.

Airstar was among eight firms to receive a virtual bank license from HKMA in 2019. It is the second among the group to launch trials, following ZA Bank, which started operations in March this year.

Currently Xiami has commenced pilot trial onboarding round 2,000 customers from friends and families of the staff of Airstar, Xiaomi Hong Kong and AMTD Group.

April 2, 2020

Standard Chartered Announces Co-Heads of New Unit

The new Financing and Securities Services unit brings together Securities Services (currently under Transaction Banking) and Portfolio Risk Management in the Financial Markets business.

Standard Chartered Bank has appointed Margaret Harwood-Jones, currently global head of Securities Services, and Emmanuel Ramambason, now global head of Portfolio Risk Management, as co-heads of its new Financing and Securities Services unit.

Harwood-Jones has been with the bank since 2013, and previously spent 10 years at BNP Paribas Securities Services. Hoornweg joined the firm in 2017, previously had stints at Brevan Howard, UBS, and Morgan Stanley, where he spent 17 years, according to their LinkedIn profiles.

The pair, based in Singapore, report to Roberto Hoornweg, global head of Financial Markets.

Financing and Securities Services will include all existing securities services activities including custody, clearing, fiduciary and fund services, and securities lending, as well as all portfolio risk management activities across prime services, money markets, central funding Ddsk, credit valuation adjustment and the modeling and analytics group, the statement said.

This would bring greater alignment of its Prime business within Portfolio Risk Management, and further enhance the synergy between Financial Markets and Transaction Banking, said Hornweg.

March 30, 2020

DBS Postpones Annual General Meeting

DBS Group on Thursday said it would defer its annual general meeting (AGM) that was originally scheduled on March 31.

The move follows government measures that imposed stricter measures to enforce safe-distancing in social settings given the novel coronavirus outbreak. From 11:59pm on March 26, all events and mass gatherings must be deferred or canceled, regardless of size.

With this, pre-registrations previously opened by DBS to watch the webcast and for physical attendance on March 31 have ceased. Shareholders can get updates from DBS’ website regarding the AGM. «DBS apologizes to shareholders for the inconvenience and thanks them for their patience in these difficult times,» the bank said in a statement.

DBS will update shareholders of the new date for the AGM and the procedures for participation after the legislative amendments to facilitate the holding of the meeting have been passed, and the necessary arrangements have been put in place in order to implement the safe distancing measures imposed by the Ministry of Health.

The 24 March Ministry of Health (MOH) Notification states that with effect from 11:59 pm on 26 March 2020, all events and mass gatherings must be deferred or canceled, regardless of size.

ACRA, MAS, and SGX RegCo have also issued a joint statement on 25 March 2020 stating that all listed issuers are expected to comply with MOH’s safe distancing measures and that legislative amendments are being proposed for Parliament sitting in April 2020 in relation to the conduct of meetings (which include allowing issuers the flexibility to hold meetings solely by virtual means). DBS’ last general meeting was held on April 25, 2019, and saw a turnout of more than 1,000 shareholders.

March 27, 2020

Online-Only Banking Kicks Off in Hong Kong

ZA Bank – one of the eight recipients of Hong Kong’s virtual banking licenses – kicked off operations yesterday, marking the dawn of digital lending in the city.

The virtual banking arm of China’s ZhongAn Online P&C Insurance began operations, according to a statement, with a focus on offering competitive rates. Hong Kong dollar savings deposits at the digital lender will pay an annual intros rate of 1 percent – well above other traditional competitors which are paying as low as just 0.001 percent.

ZA Bank continues to lure new customers by paying significantly higher rates for deposits than traditional lenders which shoulder the burden of heavy overhead costs. In January this year, it reportedly offered as high as 6 percent interest rate for 3-month Hong Kong dollar deposits in an initial trial to attract customers – more than double the rate offered by traditional lenders locally.

Local regulators completed the virtual banking license issuances in April last year and more players are expected to launch in the near-term. This includes Mox which is jointly owned by Standard Chartered, telecom firms PCCW and Hong Kong Telecom, and online travel agency Trip.com. The virtual bank was reportedly undergoing beta testing by staff earlier this month.

According to one estimate by Goldman Sachs in 2018, 30 percent of Hong Kong’s total banking revenue – or $15 billion – were at risk of being overtaken by digital banks.

March 26, 2020

Ex-Pepsi and GIC Heavyweights Join DBS Board

A seasoned financier and a consumer goods veteran join DBS’s board in a time of «intense competition for digital and sustainability leadership».

Anthony Lim and Punita Lai join the board of DBS effective April 1 this year, according to a statement. The two join as part of a «renewal process» that will also see existing board members Nihal Kaviratne and Danny Teoh retiring on 31 March 2020.

In addition to serving the board, Lim will also become a member of the DBS’s board risk management committee and its executive committee. Lai will become a member of the bank’s compensation and management development committee and, subject to approval, its nominating committee.

Lim spent nearly two decades with GIC before his retirement in 2017 in senior roles including president of the London office and New York-based president of the Americas. Previously, he was a senior managing director at Bankers Trust Company where he spent more than a decade after a three-year stint with the Monetary Authority of Singapore’s New York-based office.

Lai joins with 30 years of consumer goods experience with a focus on strategy, marketing and leadership. Her previous experience includes working for Coca Cola in China and PepsiCo in India.

Lim is a seasoned financial markets professional with extensive global experience, while Lai brings with her a wealth of experience in the consumer goods sector, honed in Asia’s two biggest markets, China and India, said Peter Seah, DBS’s chairman. «Their solid credentials make them strong additions to the DBS Boards at a time of intense competition for digital and sustainability leadership.»

March 25, 2020

Australian Banks Launch Small Biz Relief Package

In the midst of an ongoing outbreak, Australian lenders help lighten the load for affected small businesses which are estimated to house 5 million workers in the country.

The relief package will apply to more than A$100 billion of existing small business loans and provides a 6-month deferral of loan payments for those affected by the coronavirus, according to the Australian Banking Association. This follows recent collaboration between banks, the Australian treasurer and government to identify support measures.

This could put as much as $4.6 billion back into the pockets of small businesses as they battle through these difficult times,» said the association’s CEO Anna Bligh in a statement. This is a multi-billion-dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs.

In a relatively rare scenario, banks globally have an opportunity to play the role of financial rescuer after the last crisis when large parts of the industry benefited from taxpayer-backed bailouts. Outside of Australia, for example, Swiss financial giant Credit Suisse’s chief executive had suggested co-establishing a lending fund targeting small businesses in the country alongside fellow giant UBS.

While this is first and foremost a health crisis, this pandemic has begun to have serious impacts across the economy, with small businesses beginning to feel the devastating effects, Bligh added. Australia’s banks have supported the country through difficult times in the past and continue to do so.

March 23, 2020

HSBC Announces Trade Finance Loan Partnership

The bank will leverage big data to offer quick trade financing approvals to Hong Kong merchants on Alibaba’s e-commerce platform Tmall.

HSBC is will use third-party data to approve trade finance loans under a partnership with Alibaba Group’s smart logistics platform Cainiao Network Technology, the bank announced in a statement on Thursday.

The service is available to merchants using Alibaba’s e-commerce platform Tmall, which currently number some 1,800. It is also hoped that the simplified financing process will help retail and assisting businesses resume normal operations amid the Covid-19 outbreak, the partners said.

As part of the scheme, merchants will not be required to provide collateral or financial documents and can get approvals for loans of up to $500,000 within seven days. The bank is also offering a discount of 1 percent off the annual interest rate until the end of June.

By using real-time logistics information for credit assessment, the bank hopes to make loans more accessible and better match the needs of new economy enterprises. The bank said it will explore expanding this service to other e-commerce platforms.

There is a clear need to match the rapid evolution of the market with new solutions, and we believe the new scheme will provide adequate support to online merchants, said Jeanny Ip, head of global trade and receivables finance, Hong Kong and Macau, HSBC.

March 23, 2020

HSBC cutting 35,000 Jobs in a Pandemic

Newly confirmed HSBC group chief executive Noel Quinn has barely enough time to celebrate as he grapples with how to cut 35,000 jobs in the midst of a coronavirus pandemic that has claimed nearly 9,000 lives.

Cutting jobs in the middle of a global health crisis has more than just economic effects – there are also social and political ones. Depending on the location and segment, a mistimed axing – more so given that authorities are rushing to provide monetary and fiscal support sometimes targeting the working class – could result in varying levels of internal and external backlash.

HSBC’s Quinn faces an uphill battle as the effects of the coronavirus pandemic threaten to slow down the British bank’s cost-cutting plans.

One of the key elements of the revamp involves the reduction of physical branches with a focus on the U.S. and the U.K. where coronavirus cases are ramping up. In addition to the obvious social risks linked to a current wholesale layoff of branch employees, HSBC also faces logistical hurdles when unwinding branches.

In the U.K. where the bank is looking to cut 27 more branches this year, it has already had to shut down two locations temporarily – Burnley and Northampton – due to confirmed cases of staff infection. And in the U.S., where HSBC said it would cut one-third or about 80 branches, competitors are already taking major precautions including JPMorgan Chase which will reportedly close around 20 percent of its branches.

Interestingly, Quinn had previously said that the group considered a full exit from the U.S. retail market but opted, in the end, to keep the business as a key source of dollar liquidity and funding for the group.

Layoffs in the broader workforce will also be more difficult to execute until the effects of the outbreak are better contained. In addition to temporarily closed branches, at least two staff at HSBC – one in London and one in Dubai – have already been diagnosed with Covid-19 and staff within the vicinity have been told to work from home to slow down any potential contagion.

You can’t fire a trader in Europe over the phone when he is either working from home or taking care of a sick family member, said a report citing an unnamed HSBC source.

Although not alone in facing job cut headwinds, HSBC accounts for a dominant share (46 percent) of the 75,700 job cuts disclosed by banks worldwide as of December 2019. But still, it remains confident about the longer-term prospects most notably in Asia where it is betting on China’s wealthy to boost profitability. HSBC’s Asia private banking head Tan Siew Meng recently earmarked a three-year timeline to triple its number of Greater China billionaire clients.

We have a history of staying calm in difficult times, dealing with the issues at hand, and standing firm for our customers, said the newly appointed CEO Quinn in an internal e-mail. We must do the same again.

A spokesperson for the bank said no changes had been made to its plans since the last announcement in February.

March 20, 2020

Citi Appoints Asia Chief Operating Officer

The senior executive takes on a new role, according to an internal memo shared after two decades with Citi’s equities and markets unit.

Citi has appointed Andrea Fletcher as its chief operating officer for Asia.

In the newly created role based in Hong Kong, Fletcher will help drive Citi’s efforts to grow the regional franchise. She will also join the Asia Operating Committee, the announcement said.

The COO appointment follows the confirmation of Citi’s new chief for the region, Peter Babej, after the regional helm was held for six months by interim head Tim Monger, who will resume his sole chief financial officer role.

According to her LinkedIn profile, Fletcher joined Citi in 1999 as director of equity and research sales, based in Sydney. Her 20-year career at the bank is split almost equally between Australia and Hong Kong, with her most recent role being managing director and global head of client strategy, equities and prime finance.

She helped establish the Citi Women’s Network in Hong Kong and Australia, while also playing an active role in Citi’s diversity, recruiting, mentoring and leadership development efforts both internally and externally with the bank’s clients.

March 20, 2020

HSBC Confirms Permanent CEO

HSBC finally settles on a permanent group chief executive seven months after the exit of predecessor John Flint.

Former interim chief executive Noel Quinn will take the top job permanently, effective immediately, adding much-needed stability at the helm and settling months of uncertainty, according to the bank.

Quinn took over the interim role following the short-lived two-year stint of Flint in August 2019. Since then, the bank has repeatedly said that succession remained underway, most notably during the last annual results when Quinn presented the group strategy but remained as interim head. Multiple names had emerged as potential successors to Flint including UniCredit chief executive Jean Pierre Mustier, who reportedly withdrew interest last month.

The bank’s decision to name Quinn at the new CEO will bode well for stability especially given the recent shuffles made at the top. They include newly appointed regional chief executives for the U.S. (Michael Roberts), China (Mark Wang Yunfeng) alongside the Middle East, North Africa, Turkey, Latin America, Canada and most of Europe (Stephen Moss).

As the new permanent chief executive, Quinn will reportedly earn a base salary of over $1.5 million per annum.

Noel has proven to be the outstanding candidate to take on a role permanently that he has performed impressively on an interim basis since August 2019, said HSBC chairman Mark Tucker in a statement.

March 19, 2020

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