Generational transition, technology and more open clients offer fresh niches for advisers in Asia, says UBP's Michael Blake
Only operating in its present guise since early April, Union Bancaire Privée (UBP) may be the new kid on the block in Hong Kong's banking sector, but it can draw on an illustrious heritage as it looks to pursue ambitious plans for expansion.
Formed as a result of the acquisition of Coutts International from RBS by family-owned UBP, which has headquarters in Geneva, the new entity has its sights set on meeting the investment needs of Asia's ever-growing millionaire class.
"Wealth is still being accumulated faster in this part of the world than anywhere else, and 50 per cent of that wealth [is] not being professionally managed," says Michael Blake, UBP's Singapore-based chief executive for private banking in Asia. "We are also on the brink of a transition between generations, so the main challenge for us is how to take advantage of those opportunities." Originally founded in 1969, the bank sees itself as an asset management specialist able to adapt to new market environments.
It recognises too that the industry is at something of an inflection point, with banks realising they can't be all things to all people and forced to reassess their overall proposition and relative strengths.
"In today's market, you have to be very clear [about] what you do and don't offer," says Blake, formerly chief executive of Coutts International. "Private ownership enables us to make quick decisions, remain flexible, and give clients the benefit of our experience in the selection of alternative assets."
So far, the regional team includes close to 70 private bankers, split quite evenly between offices in Hong Kong and Singapore. Assets under management in Asia already amount to roughly 14 billion (HK$113 billion) Swiss francs, which compares with the organisation's global number of around 110 billion Swiss francs. And, thanks to minimal disruption during the transfer of ownership, the average length of relationship with clients inherited from Coutts is something like 10 years.
A fair proportion of these clients are first- or second-generation entrepreneurs who still have a bias towards Asia in asset allocation.
