Fashion
Even private banking in Asia – awash with not only the usual posh amenities but also various other characteristics that make it uniquely more high-touch – was not immune digital disruption during the pandemic.
Within the banking sector, private banking has often been named as one of the segments most immune to digital disruption due to several common factors: larger account sizes and transaction sums that justify human resource costs; complex products and sensitive issues that are difficult to discuss while not in-person; and an older and traditionally less tech-savvy client demographic.
This is even more amplified in Asia due to a hands-on investor culture coupled with a high share of active trading, leading to more need for manual interaction with clients. But increased market volatility and unprecedented geopolitical uncertainty, amidst an ongoing pandemic, has created an impetus for engagement regardless of method.
We have met all our clients in their living room over the last six months, which was the first time ever, said Lombard Odier’s Asia chief executive, Vincent Magnenat, in a recent online conference. And guess what? We could have done this before Covid. We needed something like Covid to realize that we don’t need to take a flight to engage with our clients and partners.
Many of the digital tools and capabilities being showcased during the pandemic, such as secure instant messaging or interactive virtual events, were already available to clients before the outbreak. But against the backdrop of restricted physical access, greater uncertainty and a digital option, a new factor has emerged: self-motivation.
In the past if you wanted to share your view on macro or on markets, you basically had two ways: set up a large client event or distribute research documents and have bankers follow-up, said Omar Shokur, Asia chief executive of Indosuez Wealth Management in a previous interview. But during this crisis, we have seen bankers and clients becoming more receptive to interaction through new channels like virtual events, not to mention a much faster time to market.
