FEATURE ARTICLE Link to Article on website Link to Partner Profile Bank of Singapore’s Hong Kong CEO on Developing a Greater China Proposition As Bank of Singapore’s Global Market Head for Greater China and North Asia, and since March 2018 also Hong Kong CEO, Derrick Tan has plenty of challenges in front of him. But he can draw on from his multi-faceted background - he spent five years as an investigating officer with the Singapore police force before embarking on what has become a fast-track career in private banking. At work he also dabbles in art curation and interior office design, while at home he finds time for his three children and the occasional ski trip. Tan met with Hubbis to explain why his early life dealing with white-collar criminals helped him better understand people’s true motivations, and how he and his team are devising and delivering the bank’s persona and proposition for Greater China. 1 FEATURE ARTICLE AN HAS BEEN WITH BANK OF SINGAPORE since 2010 and since January 2018 leads Key Priorities the overall strategy to drive Tthe bank’s presence in Greater China and North Asia, with a strate- When asked what his priorities are now, Tan replies that the an- gic focus on the Guangdong-Hong swers are easy to relay. Kong-Macau Greater Bay Area. Since March last year he has also "Our first priority is people - the search for the right talent - people taken on the role of CEO for Hong that are genuine, people that have the necessary qualities." Kong. Tan is evidently relishing his dual roles at the bank, which badg- Tan is not looking for people who simply think of how much mon- es itself as ‘Asia’s Global Private ey they are going to make. "We want people who think about Bank’ and which has been winning whether our platform is suitable for their clients, whether in plaudits as it makes inroads into the world of Asian private banking it is going to help their client the mainland China market for progress to another level, to be wealthier, to offer them wider offshore private banking. family considerations and solutions." For Greater China as a whole, he reports, even though the past year has been tough, the AUM growth His second priority is to hire locally, especially from mainland for the region is one of the highest China. "As you know, I find mainland Chinese people remarkably of any region the bank covers, at impressive in their approach to embedding digital into their life- 11% on a year-on-year basis since styles. I want to hire the best of those types of people, those that March 2019. “We achieved this have, for example, also worked for seven or more years with a while growing the RM headcount foreign bank. They understand our key markets in the Greater by only 10% and despite the tough China region and are also technologically savvy to be able to conditions,” he explains. leverage on the increasingly advanced fintech solutions as en- ablers to better manage clients' portfolios and serve them." Great timing Bank of Singapore, OCBC Bank’s The third priority is technology. Tan explains that a mission in the private banking arm, was formed past was to reduce the number of clients per banker, to perhaps in 2010. Tan believes that was near 30 per banker, and lower of course in the UHNWI segment. "But perfect timing, launched as the bank was launched in the direct aftermath things have changed now," he reports, "and we are now reversing of the global financial crisis, and that approach, because we feel that with technology, with fintech, packaged as the Asian alternative with greater connectivity, bankers are able to really scale up." to the Swiss, US, British and other reputable private banking models. He elucidates, explaining that 10 or more years ago if a banker was The mainland China market is handling USD200 million of AUM and producing revenues of USD2 of immense importance and huge million, they felt on top of the world. "But that is not enough today, potential to Bank of Singapore. In as an average banker is doing USD2.5 million and we foresee that a press release earlier this year, the with technology, we should be able to double that, to create super- bank cited a report from Wealth-X RMs. We want to move the average to USD3 million to USD5 million that China has the second largest of revenues, driven by efficiency and building their skills." HNW population in the world in 2018 at close to 1.9 million indi- viduals, and that this number is growing very fast. “As these people become ever more affluent,” Tan Building the image he and the bank want to pursue. comments, “their appetite for an Tan explains that the bank’s styl- “When clients from mainland offshore account rises, that is a ish offices in Hong Kong are repre- China walks through the doors natural evolution.” sentative of the type of approach for the first time,” he reports, “we 2 FEATURE ARTICLE want them to be impressed by 2017, he took the same approach. support of the government and the overall experience. My team “There, every meeting room is regulators and private sector, to and I have paid great attention different, as it is here” he reports, create a highly regarded financial to design and interior design “each with its own character. And market that attracts people from detail, from the front desk to the like here in Hong Kong, we even the world over, whether it is the meeting rooms and everywhere built a gallery of paintings, placed Middle East, Russia, Europe, the in-between.” to suit each room and create each US, China. “We want to create a relaxing, individual ambience. But this all “But Hong Kong is also vital as pleasant ambience, where they takes time. In fact, we are still a bridgehead to Greater China,” he are comfortable, but that is also looking for the perfect painting comments, “and is ideally suited an office that is functional and for certain rooms and positions to servicing China, hence our efficient. And over time, as clients here in our Hong Kong office.” double-digit growth rates. And relax, they can become friends, Derrick was the Global Market clients can book both in Singapore we can build true relationships Head for Malaysia, Brunei, Japan, and book in Hong Kong, diversifi- with them, which is exactly what Sub-Continent and Middle East cation is entirely natural.” we are achieving.” in 2015. He was instrumental in establishing the Bank’s market- Old world to new world First impressions count leading position in the Middle East China, he maintains, is not only He observes that there is just that region, which culminated in the a core target market of immense one opportunity to initially ‘wow’ setting up of the bank’s branch in importance, it is one that presents the clients. “It cannot be achieved the Dubai International Financial some intriguing new challenges simply by the pitch book, or the Centre (DIFC) in February 2017. to the bank. “Due to the New team, it must be the whole client Economy evolution, and the mass experience, and we are very seri- Brand and bridgehead of millennials, the wealthy are ous about it. First impressions are Tan believes the Bank of Singa- younger, they are more digital, and lasting impressions.” pore brand is ideal for the Greater gradually they are becoming more He recalls that when he estab- China adventure, as the country open, more receptive to offshore lished the bank’s Dubai branch in has achieved a great deal, with the private banking.” 3 FEATURE ARTICLE “You go to China these days,” He elucidates, explaining that savers, yet if you think how many he continues, “and it is almost if he needs to find out who is who, Chinese dynasty families there are, like seeing cartoon characters, the who is genuine and who is not compared with European and US Jetsons perhaps, whereas people across this region, he can do so in families, it is few and far between.” may still be caught up in bricks a few calls. “OCBC Bank has more The conclusion we reached is and mortar, the old world, while than 560 branches and representa- that over time we need to combine people in the major cities of China tive offices in 19 countries and re- the product offerings, the advice, are actually very different, they are gions. The list is remarkably long, the trusts and so forth, which are fully digital, they have a different as is our depth of knowledge and somewhat commoditised, with mentality, they are poised and experience,” he reports. And that helping the client to think well be- ready and focused on the next is a huge plus for Chinese clients.” yond all that, to the vital elements phase of economic growth.” of harmony and legacy. That is The evolving market needs what I think will differentiate OCBC’s strength in Asia He adds that China’s HNWIs have ourselves in the mainland China When asked why a Chinese client also realised the importance of ultra-HNWI space in the future.” should work with Bank of Singa- wealth preservation, as well as He reports that the bank is also pore rather than a major global wealth creation. “In private bank- keenly focused on the family office brand name bank, Tan is emphatic. ing, many are nowadays happy with space. “We have for example set up “Bank of Singapore’s value a modest return of perhaps 6%, an independent asset management proposition as Asian’s Global although they could make far higher excellence centre and business is Private Bank differentiates us returns investing in their own busi- growing,” he explains.