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Tag: Banking

  • UBS Reworks Super-Rich Unit

    UBS Reworks Super-Rich Unit

    UBS continues to tussle with how to cater to the lucrative super-rich tier: the bank is planning changes for the $1 trillion business led by top banker Josef Stadler.

    The Swiss-based wealth manager is whittling its ultra-high net worth business, a move which will dramatically curb the influence of unit head Josef «Joe» Stadler, a source familiar with the matter said. 

    Specifically, UBS will disperse some of its super-rich and family office clients back into the regions, the person said. Stadler will maintain a percentage of the total clients and take over an as-yet-unnamed new unit, they said.

    The so-called ultra-high net worth unit is at the center of UBS’ private banking play. The move is the first to emerge since a sixty-day «grace period» imposed on new unit co-head Iqbal Khan by CEO Sergio Ermotti lapsed. Khan runs UBS’ $2.3 trillion wider wealth management arm, together with Tom Naratil.

    The 43-year-old Khan «doesn’t care for too many segments,» the person familiar with the move said. In practice, this means that simply being super-rich won’t get you the free shmoozing and perks that are common in wooing this segment, the person said.

    Largest Wealth Custodian?

    While the super-rich segment has won substantial new funds, UBS frets that not all of it is as lucrative as it hoped – some clients use UBS solely for trading or execution, which isn’t a lucrative business for the bank.

    Khan is battling against UBS becoming the world’s largest custodian of assets – as opposed to an active wealth manager, earning fees and commissions based on its advice.

    In the future, clients will only command the luxe service if they truly draw the sophisticated (and pricey) services that UBS wants to put at their disposal. The reversal undermines Stadler, who had emerged as hugely influential in a mega-merger, overseeing more than $1 trillion in assets at the end of last year.

    Most notably, Stadler and his team won entry into the U.S. wealth market, where UBS is scaling its way up the ladder in a bid to win wealthier clients and families with least $50 million). Stadler launched a U.S. capital markets team for the super-rich push under long-time investment banker Reinhardt Olsen several months ago.

    But Stadler’s efforts are constantly accompanied by turf wars: he clashed over territory with Europe boss Christine Novakovic. The reorganization in the super-rich segment hands considerable influence back to Novakovic, to Asian wealth co-heads Amy Lo and August Hatecke, and to U.S. boss Jason Chandler.

    UBS plans to cut as much as 5 percent of staff as a result of the move, «Inside Paradeplatz» reported, citing bank insiders. Stalder oversees more than 1,000 private bankers. The segment is the second-costliest to operate, after the Americas: its cost-income ratio is 76 percent, just under the wider private bank’s 77 percent total in the third quarter.

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  • HSBC Nets Bankers From UBS and Credit Suisse

    HSBC Nets Bankers From UBS and Credit Suisse

    HSBC Private Bank appointed four senior executives to strengthen the key areas of family advisory services and philanthropy within the Private Wealth Solutions business in Asia Pacific.

    As part of its push to grow its private banking business in the Asia Pacific, HSBC announced four senior hires on Monday. Aik-Ping Ng joins as Co-Head of Family Office Advisory and Senior Family Governance Advisor, Asia Pacific while Edith Ang will be Co-Head of Family Office Advisory and Senior Family Governance Advisor, Asia Pacific, the bank said in a media statement on Monday.

    Both of them will work with client families to develop long-term succession plans, which includes providing the highest standard of advisory on establishing and professionalizing family offices, trusts and estate planning, family governance and preparing for the transition of responsibility to the next generation.

    Aik-Ping Ng has over 17 years of international and China-based experience in private equity, corporate finance, strategic M&A, family office advisory and asset management to HSBC. Most recently, Ng was a Senior Advisor at UBS, working with Ultra High Net Worth (UHNW) clients in the formulation, review, and implementation of family office solutions.

    Edith Ang joins HSBC after 13 years at UBS, where she worked with UHNW families in Asia on the formulation, review, and implementation of family legacy solutions.

    In addition, Dorothy Chan has been appointed to be Head of Philanthropy Advisory and Charitable Services, Asia Pacific, while Christine Wong will take up the role of Head of Greater China Market, Private Wealth Solutions. Dorothy Chan succeeds Cynthia D’Anjou-Brown, the previous head, as the latter will retire from HSBC in December this year after almost 15 years of service.

    As a leading private and institutional client trustee platform, we are dedicated to building lasting relationships with HNW and UHNW families to identify the solutions to support them across the generations,» said Cynthia Lee, Regional Head of Private Wealth Solutions, the Asia Pacific in a media statement.

    Dorothy Chan joins HSBC after 19 years of experience in a variety of senior roles in the private, public and not-for-profit sectors. She previously worked at Galaxy Entertainment as Vice President, Corporate Relations. Chan has deep experience working with a number of leaders to define a vision and create solutions that contribute to the sustainable development of a range of diverse communities.

    Working closely with HSBC’s teams in EMEA and the Americas, Chan will help drive coordinated philanthropy efforts including building charities and connecting. She will also lead the team supporting clients in the development of their charitable goals.

    Christine Wong joins HSBC from Credit Suisse, where she was Director of Trust and Estate Advisory Team for the Greater China Market. Prior to joining HSBC, she gained 25 years of experience in cross-border trusts in senior wealth planner roles at Credit Suisse, Edmond de Rothschild, UBS, and J.P. Morgan.

    She also has served as Managing Director of the Asiaciti Trust group’s Hong Kong office with responsibility for the fiduciary management and trust operations of the business. In her new role, Christine Wong will be integral to the further development of HSBC’s Private Wealth Solutions business in Greater China.

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  • HSBC Nets Bankers From UBS and Credit Suisse

    HSBC Nets Bankers From UBS and Credit Suisse

    HSBC Private Bank appointed four senior executives to strengthen the key areas of family advisory services and philanthropy within the Private Wealth Solutions business in Asia Pacific.

    As part of its push to grow its private banking business in the Asia Pacific, HSBC announced four senior hires on Monday. Aik-Ping Ng joins as Co-Head of Family Office Advisory and Senior Family Governance Advisor, Asia Pacific while Edith Ang will be Co-Head of Family Office Advisory and Senior Family Governance Advisor, Asia Pacific, the bank said in a media statement on Monday.

    Both of them will work with client families to develop long-term succession plans, which includes providing the highest standard of advisory on establishing and professionalizing family offices, trusts and estate planning, family governance and preparing for the transition of responsibility to the next generation.

    Aik-Ping Ng has over 17 years of international and China-based experience in private equity, corporate finance, strategic M&A, family office advisory and asset management to HSBC. Most recently, Ng was a Senior Advisor at UBS, working with Ultra High Net Worth (UHNW) clients in the formulation, review, and implementation of family office solutions.

    Edith Ang joins HSBC after 13 years at UBS, where she worked with UHNW families in Asia on the formulation, review, and implementation of family legacy solutions.

    In addition, Dorothy Chan has been appointed to be Head of Philanthropy Advisory and Charitable Services, Asia Pacific, while Christine Wong will take up the role of Head of Greater China Market, Private Wealth Solutions. Dorothy Chan succeeds Cynthia D’Anjou-Brown, the previous head, as the latter will retire from HSBC in December this year after almost 15 years of service.

    As a leading private and institutional client trustee platform, we are dedicated to building lasting relationships with HNW and UHNW families to identify the solutions to support them across the generations, said Cynthia Lee, Regional Head of Private Wealth Solutions, the Asia Pacific in a media statement.

    Dorothy Chan joins HSBC after 19 years of experience in a variety of senior roles in the private, public and not-for-profit sectors. She previously worked at Galaxy Entertainment as Vice President, Corporate Relations. Chan has deep experience working with a number of leaders to define a vision and create solutions that contribute to the sustainable development of a range of diverse communities.

    Working closely with HSBC’s teams in EMEA and the Americas, Chan will help drive coordinated philanthropy efforts including building charities and connecting. She will also lead the team supporting clients in the development of their charitable goals.

    Christine Wong joins HSBC from Credit Suisse, where she was Director of Trust and Estate Advisory Team for the Greater China Market. Prior to joining HSBC, she gained 25 years of experience in cross-border trusts in senior wealth planner roles at Credit Suisse, Edmond de Rothschild, UBS, and J.P. Morgan.

    She also has served as Managing Director of the Asiaciti Trust group’s Hong Kong office with responsibility for the fiduciary management and trust operations of the business. In her new role, Christine Wong will be integral to the further development of HSBC’s Private Wealth Solutions business in Greater China.

  • China Wants Macau as Financial Hub

    China Wants Macau as Financial Hub

    Beijing has directed state-owned banks and enterprises to help set up infrastructure in Macau to aid financial diversification, and to serve as a contingency plan if the situation in Hong Kong worsens.

    Two officials who helped develop the Shanghai stock exchange moved to Macau to help establish its yuan-based stock exchange, one of the sources told «Reuters». Chinese officials, and bankers in Hong Kong, say the push to develop financial infrastructure in Macau is part of a plan to avoid any major market disruption in Hong Kong that could impact Chinese businesses.

    The financial industry used to be an idea that we reserved for Hong Kong. We used to give all the favorable policies to Hong Kong. But now we want to diversify it, said one Chinese official who requested anonymity.

    The idea is not for Macau to replace or undermine Hong Kong but for China to have a contingency plan in case the situation in Hong Kong worsens, sources at Reuters added.

    The slew of new policies for Macau is aimed at diversifying the city’s casino-dependent economy into a financial center. Macau’s casino operators, which have been hit by slowing economic growth and the Sino-U.S. trade war could look forward to the development opportunities in Hengqin, casino executives who were interviewed said.

    Xi Jinping has made very clear that he wants a diversified Macau economy, said one Chinese official. The future focus will be on tourism and finance, to make it a center to host international meetings like Singapore.

    Besides establishing a yuan-denominated stock exchange and speeding up a yuan settlement center which is currently being developed, the policies will also be looking at land allocation in Macau. As part of that effort, Macau will be allocated more land on the mainland island of Hengqin to develop in areas such as education and healthcare.

    These policies also mark the 20th anniversary of the former Portuguese colony’s return to Chinese rule, as Xi plans a visit to Macau next week. There, Xi is expected to announce policies to further integrate Macau with mainland cities in the Greater Bay Area, the region around the Pearl River Delta that also includes Hong Kong, according to Chinese officials and Macau executives.

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  • Apple Card holders can buy an iPhone and make 24 monthly interest-free payments

    Apple Card holders can buy an iPhone and make 24 monthly interest-free payments

    Sure, Apple iPhone buyers can purchase an iPhone from their carrier and pay it off interest-free by making 24-monthly payments. Starting tomorrow, that option will be available to Apple Cardholders purchasing a new iPhone from the Apple Store. The monthly amount owed for the phone will be added to each month’s minimum amount due for 24 months. Cardholders using the Apple Card to make purchases at the Apple Store will receive a 6% cashback bonus until the end of this year. That is twice the usual 3% that they get back on Apple Store purchases made with the card.

    Apple CEO Tim Cook, after Apple reported its fiscal fourth-quarter results in October, announced that the company was going to allow Apple Cardholders to pay for iPhone purchases monthly. At the time, Cook said, “One of the things we are doing is trying to make it simpler and simpler for people to get on these sort of monthly financing kind of things. That’s a part of what we announced with the Apple Card earlier in the call and so we are cognizant that there are lots of users out there that want sort of a recurring payment like that.”

    The company does offer the iPhone Upgrade Program, which includes 24 interest-free monthly payments for an iPhone bundled with the AppleCare+ extended warranty. After 12 monthly payments, the iPhone being paid off can be exchanged for the latest model and the payments continue. For example, those signed up for the upgrade program are paying $54.08 monthly for the 64GB iPhone 11 Pro Max.
    Apple posted a message about installment payments inside the Wallet app on Monday that read “Installments are not subject to interest like other purchases made with Apple Card. If you pay more toward your installment balance, you may reduce the overall number of payments, but are still scheduled to pay your installment payment the following month.” The tech firm introduced the Apple Card in March and launched it in August. The card is the result of a partnership between Apple and securities firm Goldman Sachs. In addition to receiving 3% back on purchases of Apple products using the card (as we pointed out earlier, until the end of the year this is doubled to 6% for Apple Store purchases), users get a 1% cash back bonus on purchases while Apple Pay transactions give users back 2% of the amount charged. These cashback payments are computed and added to the user’s account daily. And there are no fees for Apple Cardholders; Apple does not collect late fees, annual fees, or over-the-limit fees.
    Apple iPhone users can apply for the card through the Wallet app or from the Apple Card site. And once they are approved, the card can be used immediately using Apple Pay and the Wallet app. While those approved can use the card immediately, a physical titanium card is subsequently mailed to the account holder. And while most credit card companies clap their hands together in glee and drool when customers pay the minimum amount due each month, Apple will show users how much interest they can expect to pay overtime based on the amount they are paying each month. This might give cardholders the incentive to pay down more of their balance each billing cycle.
    With the Wallet app, users can see their account as it stands right at that moment. And if a subscriber spots a charge that he or she doesn’t remember, tapping on it will show the location where the transaction took place on a map.
    So if you have an Apple Card, starting tomorrow, you can purchase a new iPhone from the Apple Store and make 24 monthly installment payments interest-free; there’s no additional application required to finance the purchase of an iPhone using the card.
  • Tencent’s WeBank to Power China’s Blockchain Network

    Tencent’s WeBank to Power China’s Blockchain Network

    The Shenzhen-based firm will provide the tech for the country’s national blockchain consortium. WeBank, China’s first digital bank, will provide the technical infrastructure for the country’s nationwide blockchain-based service network (BSN), according to a Chinese state media report.

    BSN plans to offer infrastructure services for any Chinese or international entity that uses blockchain. According to the agreement, BSN will use WeBank’s open-source FISCO BCOS blockchain application ecosystem, and WeBank will provide technical support and training for BSN developers, the report said.a

    China is attempting to build a nationwide blockchain network to serve a range of state-controlled public services across the country, including telecommunications and energy management.

    Users in various industries often face dilemmas such as high cost of forming a chain, heterogeneity of the underlying platform, and inability to interact with data. Promoting the construction of public infrastructure at the bottom of the blockchain has become the meaning of pursuing the development of the digital economy, the report said.

    Led by the State Information Center, a think tank affiliated with the National Development and Research Commission, China’s highest central planning agency, the BSN consortium includes firms like WeBank, Huobi China, UnionPay, China Mobile and China Telecom.

    The project has been tested in 25 cities across China as well as Hong Kong and Singapore. It is expected to be tried out in more than 200 cities by 2020.

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  • Broking Pressures Prompt Cuts at Maybank Kim Eng

    Broking Pressures Prompt Cuts at Maybank Kim Eng

    The job cuts are part of a broader review that also affects Maybank Kim Eng’s regional institutional sales and research, and Hong Kong investment banking and advisory businesses.

    Maybank Kim Eng (KE), the investment banking arm of Maybank, is restructuring its retail brokerage operations, and 5 percent of its staff in Singapore, or about 30 people, are being laid off, the firm said in an internal memo circulated.

    About 3 percent of its global workforce of 2,000 are affected by the latest exercise. The firm has about 600 employees in Singapore, which includes 400 full-time staff and self-employed remisiers, though none of the latter were affected, «BT» reported. Back office staff are among those being let go.

    The restructuring was prompted by changes in the investment banking landscape, including shifting customer preferences, increasing automation and digitalization of brokerage offerings, and changes in the regulatory environment, a spokesperson told the newspaper in a statement.

    Lower trading commissions and the growing popularity of passive investing with robo-investors are putting a strain on securities brokers like Maybank KE, which reported a pre-tax loss of 7.3 million ringgit ($1.75 million) for the first nine months of 2019, compared to a pre-tax profit of 227.4 million ringgit for the same period last year.

    Singapore, however, continues to be the firm’s largest market outside its home base Malaysia. Maybank KE is the city-state’s 15th-largest broker, with a 3.38 percent market share.

  • Deutsche Bank Hires Tech Duo in India

    Deutsche Bank Hires Tech Duo in India

    Deutsche Bank hires a duo in India focused on overseeing and enhancing the bank’s technology, data and innovation capabilities.

    Dilip Khandelwal joins as the bank’s managing director and head of technology centers. In his Pune-based role, he will oversee the bank’s tech centers globally to create «one, consistent strategy». In addition, Khandelwal was also named as the bank’s APAC head of technology, data and innovation as well as chief information officer for human resources, legal and communications.

    The bank also appointed Gil Perez as managing director and head of strategy and innovation. According to an announcement, Perez will oversee innovation strategy, thought leadership and technology innovation partnerships to match the bank’s needs with relevant third party tech solutions.

    Khandelwal and Perez both join from software provider SAP where they’ve had experience with undergoing various forms of tech transformation. Khandelwal led a large scale transformation to accelerate client adoption of cloud services at SAP while Perez spent 8 years with former employer where he guided enterprise companies with their respective digital transformation journeys.

    The opportunity to transform technology at a global company like Deutsche Bank is a unique challenge for talented and ambitious technologists, said Bernd Leukert, head of technology, data and innovation at Deutsche Bank.

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  • UOB Acquires Vietnam Asset Manager

    UOB Acquires Vietnam Asset Manager

    UOB Asset Management will acquire VAM Vietnam Fund Management Joint Stock Company, pending regulatory approval.

    UOB Asset Management has agreed to initially acquire 1.13 million ordinary shares from VAM Vietnam Fund Management Joint Stock Company from individual Nguyen Xuan Minh. The deal for the firm’s 24.53 percent shareholding is valued at VND113,680 million ($4.9 million), according to a report.After regulators approve the deal, another 3.47 million ordinary shares, or 75.47 percent of issued share capital, will be acquired by UOB Asset Management making VAM Vietnam Fund Management Joint Stock Company its subsidiary
    RegionalizationAccording to a release, the acquisition considered various factors including capital, net asset value and asset under management of VAM. The acquisition is also expected to further strengthen UOB Asset Management’s presence in Asia, in line with its regionalization plans. As of October 31 this year, VAM’s net asset value was around VND26 billion ($1.1 million) and it had assets under management of approximately VND114 billion ($4.9 million).
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  • Cyberattack-Prone Banks Risk Over Half of Profits in Singapore

    Cyberattack-Prone Banks Risk Over Half of Profits in Singapore

    Banks that lack measures to withstand cyberattacks risk up to 65 percent of their quarterly profits, according to a recent stress test study by the Monetary Authority of Singapore.

    Direct and indirect impact from cyberattacks against banks is estimated to cause losses of 35-65 percent and 20-50 percent of quarterly profits, respectively. According to the study, profit declines are attributable to reputational impact, funds were stolen, legal charges and marketing expenses.

    The stress tests revealed likely vulnerabilities from theft and disruption-related cyberattacks. Examples of theft-related attacks include hacking of ATMs to dispense cash and bank payment systems. Disruption-related impact includes denial-of-service (DoS) attacks to prevent access to the internet and mobile banking apps or disruption to internal payment processing systems. Damage or corruption of client data was also cited as another example of a cyberattack.

    The aforementioned figures reflect costs without contingency measures and when included, risks are significantly improved with banks expected to lose quarterly profits of 20-35 percent and 12-25 percent from direct and indirect impact, respectively. In order to reduce risks from cyberattacks, banks have adopted multiplied layers of security controls to protect data and funds; added DoS mitigation measures such as clean pipe services; and backed up critical data regularly.

    In-house measures aside, it is also heeding greater attention to third-party service providers. Periodic audits are made to verify the ongoing effectiveness of existing security and business continuity measures are in place for a switch to an alternative provider or to in-house operations in the event of a disruption.

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  • HSBC Private Bank Makes Key Appointments

    HSBC Private Bank Makes Key Appointments

    The bank has made two appointments that support its growth ambitions in Asia Pacific. HSBC Private Bank has appointed Jackie Mau as regional head of UHNW, Asia Pacific and Abdel Ben Tkhayet as head of investment services and product solutions (ISPS), Asia Pacific, the firm announced in a press release on Thursday.

    Mau was most recently co-head of ISPS, Asia Pacific for HSBC Private Banking. He joined HSBC in 2003 and has held senior client-facing roles across Investment Banking and Private Banking in both Hong Kong and Thailand.

    In his new role, Mau will be responsible for leading UHNW business in Asia, ensuring that coverage and propositions for clients with sophisticated wealth needs are met. He will report to Asia Pacific head of private banking Siew Meng Tan.

    Ben Tkhayet will be responsible for leading the products and investment counselor teams in Asia and will continue to develop products and investment solutions for clients in the region, the announcement said.

    He joined HSBC in 1997 and has held senior roles in the Private Bank and Global Banking and Markets divisions. He was most recently the private bank’s head of FICC and Equities, Asia Pacific. Ben Tkhayet will continue to report to chief investment officer Stuart Parkinson and to Asia Pacific head of private banking Tan.

    Since renewing our strategic focus on the UHNW segment, clients are already seeing the benefits of a new coverage model, new solutions specialists and segment management teams, and an enhanced product set for sophisticated needs, Tan said.

    HSBC said it is hiring for 700 roles over five years to the end of 2022 and investing $100 million in digital and technology over 2019 and 2020 to grow its Asian private banking business.

    In September, it announced a slew of appointments to strengthen the bank’s investment counseling coverage for Taiwan and mainland China.

  • Singapore Fintech SaaS Raises $3 Million for Expansion

    Singapore Fintech SaaS Raises $3 Million for Expansion

    The AI-backed platform hopes to expand to the U.K. and Hong Kong and has already started testing in those markets.

    Osome, a Singapore-based business services firm that aims to digitize traditional corporate management processes, has secured $3 million in funding led by Target Global, with participation from Phystech Venture and AdFirst, the company announced on its blog on Tuesday.

    The raise follows $2 million secured in December 2018 for product development and market testing in Australia and Hong Kong. It was also led by Target Global, a venture capital firm based in Berlin, Germany, with 700 million euros in assets under management.

    Osome is led by Singapore-based serial entrepreneur Victor Lysenko, who has two exits as CEO and founder: Russian neobank Rocketbank and Groupon Russia.

    The firm uses a cloud-based platform to help business owners and entrepreneurs with legal compliance and tasks such as payroll, accounting, taxation, company formation, and filing reports.

    Launched in 2018, the firm has already amassed 2,300 customers in Singapore. It now has its eyes on other global financial centers.

    «The company’s exponential growth in Singapore both in terms of revenue and customer base validates the business model and represents a solid ground for further growth both inside and outside of the region,» said Phystech Ventures partner Olga Maslikhova.

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  • DBS Awards Nine Social Enterprises

    DBS Awards Nine Social Enterprises

    Nine do-gooder firms in Asia are taking home nearly $1 million (S$1.3 million) under this year’s DBS Foundation Social Enterprise Grant Programme.

    Three of this year’s winners hailed from Singapore: NamZ, a food science startup; reach52, which uses apps to collect health data from under-served rural communities and hook them up with care providers; and Agape Connecting People, which finds work for people with disabilities, single mothers, prisoners and other disadvantaged job seekers.

    From empowering the disadvantaged and marginalized, to creating nutritious food that benefits both the environment and smallholder farmers, we are delighted to support these inspiring social entrepreneurs as they strive to build a better future for all, said Karen Ngui, head of group strategic marketing and communication at DBS in a media statement.

    The DBS Foundation scheme, which was launched in 2015, is open to social enterprises from Singapore, India, Indonesia, Taiwan, Hong Kong, and China.

    Each recipient gets up to S$250,000 to scale up its business operations. The funds can go towards market expansion, a production ramp-up, or other ways to grow the company’s impact on society.

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  • As Chinese Digital Banks Arrive, OCBC Gets Ready

    As Chinese Digital Banks Arrive, OCBC Gets Ready

    When asked if Oversea-Chinese Banking Corp is ready to take on Chinese technology companies looking to take a piece of Singapore’s banking market, the lender’s top executive said they are well-positioned.

    Jack Ma’s Ant Financial Services Group has announced interest in Singapore’s digital banking licenses, but Oversea-Chinese Banking Corp’s (OCBC) chief executive Samuel Tsien is unfazed with the arrival of Chinese technology companies.

    This is because he views these Chinese technology companies as «extended» competition rather than new competition. Moreover, the local lender has its own digital banking plans – it has agreed in principle to join a group led by peer-to-peer lender Validus Capital and Temasek Holdings’ venture-capital arm to apply for a wholesale digital banking license before a year-end deadline, Bloomberg reported this month.

    The bank and its partners are looking to provide a platform to expand in the lucrative South-east Asian market. «We are talking to various parties but we have not made a final decision whether we would go in or not,» said Tsien.

    It’s attractive to us because it’s the way that we can test out in the new digital economy as to what we could do.

    Earlier this year, the Monetary Authority of Singapore (MAS) unveiled plans to grant as many as five virtual bank licenses to boost competition and innovation in the nation’s financial industry. China’s Ant Financial and Ping An Insurance (Group) are among companies considering applications, and Tsien said OCBC may join the race, both as a bank, and through its insurance unit.

    Another reason that OCBC is unfazed is due to high regulatory hurdles greeting new digital banks. Not only must they do proper Know your customer processes and transaction monitoring, they are also not allowed to offer unrealistic deposit rates just to gain market share, he added.

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  • OCBC Prefers Next Leader To Be From The Inside

    OCBC Prefers Next Leader To Be From The Inside

    The chief of Oversea-Chinese Banking Corp has signaled that he favors internal candidates over external ones to succeed him when the time comes.

    Samuel Tsien, who is in his eighth year as the chief executive officer at Oversea-Chinese Banking Corp (OCBC), wants someone familiar with various parts of the bank to lead, without giving names.

    We have internal candidates who are strong candidates, who have moved around in different functions, who are able to take over the bank in the event of a need, said Tsien, 65. Singapore’s other lenders are pursuing various tracks for management succession: United Overseas Bank’s boss recently expressed openness to outsiders while DBS Group Holdings wish to groom leaders from within.

    Under Tsien’s leadership, the group has spent meaningfully to grow its footprints in banking and wealth management. In 2014, OCBC spent $5 billion to take over Wing Hang Bank in Hong Kong. Subsequently, it bought the Singapore and Hong Kong wealth operations of Barclays, helping OCBC’s Bank of Singapore become the sixth-largest private bank by assets in Asia excluding China.

    More recently, OCBC was considering a bid for Jakarta-based PT Bank Permata, a move that would have made it Indonesia’s fifth-largest lender by assets. However, the bank walked away after considering Permata a poor fit, people with knowledge of the matter.

    The Shanghai-born leader also has ambitions to further expand in insurance, which OCBC counts as its third pillar alongside banking and wealth management. While its insurance arm – Great Eastern Holdings – is well established in Singapore and Malaysia, Tsien said he sees more room for growth in Indonesia and Greater China.

    Last year, Great Eastern bought PT QBE General Insurance for $28 million in Indonesia, and Tsien said he would look at other opportunities to grow, including acquisitions.

    In Hong Kong, the bank has a 33 percent stake in Hong Kong Life Insurance, which it decided against selling last year. «That operation is quite small. So we are still investing into this corporate but not significantly, as we look for opportunities in this market,» Tsien said.