INTERVIEW InterviewVIEW INTER A Pioneer in Banking An Interview with Dr. the Honorable Sir David K.P. Li, Chairman & Chief Executive, The Bank of East Asia prudent partner that could facilitate business while global professional services provider, both at home and abroad. Today, BEA is the Tricor Group, offers integrated business, cor- largest independent local bank in Hong Kong porate, and investor services. and the operator of an extensive network cov- Local corporate customers are central to ering Greater China, Southeast Asia, the United BEA’s business and the bank serves companies Kingdom, and the United States. both large and small, from Hong Kong-based Over the years, we have established a multinationals to small and medium-sized enter- strong reputation for supporting the growth of prises that form the backbone of Hong Kong’s Dr. the Honorable Sir David K.P. Li local business. We are also known as a pioneer economy. in the banking fi eld in Hong Kong. We were the BEA’s growth in recent years has largely EDITORS’ NOTE Sir David K.P. Li is Chairman fi rst bank in Hong Kong to link all branches been attributable to the success of the bank in and Chief Executive of The Bank of East Asia, by a state-of-the-art computer system, the fi rst developing new business links between custom- Limited. In addition to serving on the Boards of to offer safe deposit box services, and the fi rst ers in Hong Kong, Mainland China, and over- several major listed companies, Sir David takes to provide comprehensive electronic banking seas. Going forward, we will further build on a very active role in public life. He is the Pro- services. In 2007, we became one of the fi rst our advantage in facilitating cross-border busi- Chancellor of the University of Hong Kong and foreign banks to establish a locally incorpo- ness fl ows by introducing and selling a wider Chairman of the INSEAD East Asia Council. He rated subsidiary in Mainland China, The Bank range of products and services geared toward sits on the Advisory Board of the Cambridge of East Asia (China) Limited (BEA China). In the meeting the specifi c needs of Mainland corpo- Judge Business School. He is also Chairman of the following year, we were the fi rst foreign bank rations as they become more active in overseas Executive Committee of the St. James’ Settlement, in China to launch Renminbi (RMB) debit cards markets. and Chairman of The Salvation Army Hong and credit cards. How do you defi ne the target market for Kong and Macau Command. He was a member Customer focus is one of our core values. BEA and what is your client profi le? of Hong Kong’s Legislative Council from 1985 We have always put our customers fi rst, know- In addition to our home market of Hong to 2012. Sir David holds an M.A. in Economics ing that our success depends on how well we Kong, our bank serves a large customer base and Law from the University of Cambridge, and anticipate, appreciate, understand, and satisfy throughout Greater China, which includes the was conferred an honorary doctorate by the their needs. It is our loyal customers, sharehold- Mainland as well as Macau and Taiwan. Beyond University in 1993.. ers, and business partners together with our Greater China, BEA serves customers with ties dedicated team of banking professionals that to Hong Kong and the rest of Greater China. COMPANY BRIEF The Bank of East Asia have made the bank what it is today. These overseas markets include Singapore, (www.hkbea.com; BEA) was incorporated in Would you provide an overview of the Malaysia, Indonesia, Japan, South Korea, the 1918, and provides corporate and personal services offered by BEA and your out- United Kingdom, and the United States. banking services to customers in Hong Kong look for growth? We are continuously expanding our cus- and the rest of greater China and overseas. BEA offers a comprehensive range of com- tomer base, enhancing our product range, and As the largest independent local bank in Hong mercial and retail banking services to a diverse developing new and innovative solutions that Kong, the bank is listed on the Hong Kong customer base. Products and services are de- improve the quality of the customer experi- Stock Exchange and is one of the constituent livered through the bank’s Corporate Banking, ence. We are also laying the foundation for fu- stocks of the Hang Seng Index. The Bank of East Personal Banking, Wealth Management, Insurance ture prosperity by extending our reach among Asia employs more than 12,000 people world- & Retirement Benefi ts, Treasury Markets, China, younger clients through a strong university cam- wide and maintains over 230 branches. and International divisions and include syndi- pus branch presence in Hong Kong and the ef- cated loans, trade fi nance, deposit-taking, for- fective use of social media. BEA is a company with a storied past. Would eign currency savings, remittances, mortgage BEA is a leader in China and has a deep you highlight the history and heritage of loans, consumer loans, credit cards, Internet commitment to the market. What is the BEA and what has made it so successful over banking, retail investment and wealth man- current state of the economy in China and the past several years? agement services, private banking, RMB ser- is there still strong growth potential? BEA was founded in 1918 and we of- vices, foreign exchange margin trading, China has experienced phenomenal growth fi cially began operations in 1919, when we estab- broking services, Mandatory Provident Fund over the past three decades. However, the pace lished our headquarters in Hong Kong’s Central services, and general and life insurance. of growth has recently begun to slow, as China District. The vision of our founders was to bring In addition to the bank’s core offering, strives to achieve more balanced growth, fo- professional banking services to the Chinese other members of the BEA Group extend the cusing on closing the income gap, adopting community in Hong Kong, and to help locally range of products and services offered. BEA’s environmentally responsible practices, and owned enterprises grow and prosper. Our wholly owned subsidiaries, BEA Life Limited improving social welfare. It is a refl ection of founders prided themselves on knowing their and Blue Cross (Asia-Pacifi c) Insurance Limited, the growing maturity of the Chinese economy, customers and their customers’ needs, and we serve as underwriters of life insurance and as the political leaders focus on the quality of quickly became recognized as a reliable and general insurance products, respectively, growth rather than growth alone. 190 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2013 LEADERS MAGAZINE, INC. VOLUME 36, NUMBER 4 Nevertheless, China’s growth rate is still re- Chinatown in 1989. In 1991, we opened our Los has been transformed during the course of his 12 markable in comparison to global peers, and the Angeles Wholesale Branch on the west coast. years in offi ce, with new public parks along the country will continue to play an extremely im- We recently sold a majority interest in our waterfront, with a more people friendly urban portant and infl uential role in the development U.S. retail banking business to the largest bank landscape, and more environmentally aware of the global economy in the years to come. in China, Industrial and Commercial Bank of systems in place. At the same time, he has China aims to implement a multipronged China (ICBC). The unit, now renamed ICBC overseen a housing and development boom, set of reforms (including tax reform, state-owned (USA) NA, is headquartered in New York. We and revitalized neighborhoods by addressing enterprises reform, and fi nancial market reform) maintain a 20 percent interest in the operation outdated planning rules. He also accomplished and new engines (including urbanization, new in- and are very pleased to be partnered with ICBC. this while New York suffered through the worst dustrialization, household consumption, informa- We see very good growth potential for this busi- fi nancial crisis since the Great Depression. It is tion technology upgrades, and a strong focus on ness going forward. a remarkable achievement. sound environmental practices) to achieve more BEA has achieved much success and sustainable, healthier growth while de-emphasiz- many accolades over the years. What are ing external trade, construction, and investment. you the most proud of in terms of all The deregulation of fi nancial markets opens that BEA has accomplished? up previously restricted areas to foreign investors Our bank has operated continuously in and facilitates fundraising activities. For example, China since the establishment of its first SMEs will be able to issue medium-term bonds Going forward, the Mainland branch in Shanghai in 1920 – even through private placements and we should see throughout the tumultuous years of the mid-20th further relaxation on capital fl ows. century. Over the years, our China operations What do large, Western-based compa- bank’s strategic focus have steadily grown, and today, we operate one nies and entrepreneurs need to know be- of the most extensive branch networks of any fore entering emerging markets in Asia with is two-fold: To further foreign bank on the Mainland. a specifi c focus on China? The BEA Group has leveraged its strengths The importance of the Asian markets, es- in the Greater China region to capitalize on pecially China, has become increasingly appar- build on its advantage growing cross-border activity with Mainland ent to Western companies seeking growth China. This has contributed to growth in the outside of their home markets.