1. Newsroom
  2. Das asiatische und das europäische Modell nähern sich rapide an
Menu
UBP in der Presse 09.05.2016

Das asiatische und das europäische Modell nähern sich rapide an

Das asiatische und das europäische Modell nähern sich rapide an

The business models for private banking in Europe and Asia have historically been regarded as very different. That is no longer the case today.


Although market customs are naturally still influenced by each culture's specific characteristics, the underlying wealth management trends are now very similar in both Asia and Europe. Their competitive landscapes, regulatory environments, client requirements, product ranges and private banking business models are much more similar than many would believe, and there is even a similar banking consolidation process taking place in each market. The last few months have seen a number of transactions, particularly in Asia, including several major ones: Société Générale and Barclays have sold their private banking businesses in Singapore and Hong Kong, while BSI and Coutts have disposed of their Asian businesses as part of global deals. As a result, Asia is no longer an exception to the private banking consolidation process that is transforming the sector around the world. This now gives us a good opportunity to compare two markets which, it turns out, are fairly similar.

In terms of the key market players, the latest private banking league tables in Asia show that the top spots are occupied by the same banks as in Switzerland and Europe. As was the case in Europe several decades ago, domestic retail banks – Chinese, Indian and Indonesian – are lagging behind, mainly because there is no regulatory framework allowing them to develop private banking businesses in their local markets. As soon as they are able to develop a more structured range of products and services, we will see onshore leaders genuinely competing with foreign banks, as large European banks are now doing in their domestic markets. Currently, then, the positions occupied by the main international players in Asia are still similar to their positions in the rest of the world, and they are still benefiting from a benign competitive environment in Asia.

As regards the regulatory framework, Asia is not lagging behind Europe, quite the contrary in fact. In terms of both the main regulatory principles and their implementation, the rules in force in Europe are also in force in Asia, and often the main financial centres in Asia have changed more quickly than those in Europe. Today, the due diligence that banks need to do on their clients, product suitability regulations, issues regarding selling authorisations and restrictions, and naturally tax compliance requirements are all on a par with European and Swiss regulations. The main Asian countries have also signed up to FATCA and are preparing for the automatic exchange of information according to OECD standards. As a result, the idea that regulatory or tax requirements are less demanding in Asia is now just a myth.

In terms of clientele, a distinction has often been made between European and Asian clients, the received wisdom being that Asian clients are "traders" whose needs are served much more effectively by a brokerage business model than the traditional private banking model. However, we are now seeing convergence in this area as well. Wealthy Asian clients are increasingly organised, often with family offices, and want their portfolios to be managed in a highly professional and diversified manner. The trading aspect remains a characteristic of the Asian market, but it is gradually giving way to a more traditional approach, focusing on long-term investments and diversification. That change is being driven particularly by a generational shift among high-net-worth Asian clients.

As regards products and services, there is now very little to choose between those available in Europe and in Asia. We are seeing convergence between available investment instruments and solutions such as hedge funds, structured products, and insurance-based wealth engineering solutions. Naturally, there is still a local bias, which means that Europeans prefer European issuers and Asians prefer Asian risk, but apart from that there are no longer any major differences. Asia and Europe are roughly equal in terms of coming up with innovations and new developments, which then spread rapidly in both markets.

The final aspect concerns the overall profitability of private banks, which is being hampered by the same problems in both continents. Banks are experiencing similar pressures on revenue and relatively rapid growth in overheads. In Asia, front-office staff now earn the same, or sometimes more, than their peers in Europe. Banks in both markets are also seeing similar cost inflation because of the greater resources needed for compliance, risk management and control purposes. The situation is putting a serious squeeze on profits, and it is vital for banks to achieve sufficient scale and streamline their organisations.

As a result, the general context for private banking in Asia is very similar to that seen in Europe. In terms of volume, however, the Asian market is now the largest in the world, bigger than its US counterpart, and it is growing and will continue to grow more quickly than the European and US markets. It is that growth potential that is prompting most global players to continue making heavy investments in Asia. We are likely to see the trend continue, sometimes at the expense of banks' European operations, and that is sure to continue driving the current market consolidation.


MichelLonghini.jpg

Michel Longhini
CEO Private Banking

 

Asset class

Japanese equities

Why the current outlook makes a compelling case for Japanese equities

Watch the videos

Meistgelesene News

UBP in der Presse 02.04.2019

Zürich ist ein zentrales Standbein für die UBP

Le Temps (29.03.2019) - Vor genau vier Jahren hat die UBP die Privatbank Coutts übernommen. Heute verwaltet UBP 25 Milliarden Franken in der Wirtschaftsmetropole der Schweiz und hat damit ihre Kundenvermögen innerhalb von fünf Jahren verdoppelt. Wir haben Adrian Künzi, Leiter der UBP Zürich, getroffen.

UBP in der Presse 03.12.2018

Union Bancaire Privée – eine Bank ganz in Familienhand

The Straits Times (25.11.2018) - Der CEO will die UBP zu einer der grössten Banken in Familienbesitz machen.

UBP in der Presse 26.03.2019

UBP is ready for all Brexit eventualities

AWP (25.03.2019) - Union Bancaire Privée (UBP) anticipated the uncertainties surrounding future relations between the United Kingdom and the European Union. By expanding in London with the acquisition of ACPI and maintaining a strong presence in Luxembourg, the Geneva bank is prepared for any outcome, as its CEO Guy de Picciotto explained to AWP.

Auch lesenswert

UBP in der Presse 23.05.2019

Handelsstreit stützt Goldpreis

Finanz und Wirtschaft (18.05.2019) - Seit Ende Februar deckelten ein erstarkter Dollar und festere Aktienmärkte den Goldpreis.

UBP in der Presse 20.05.2019

Grenzen zwischen privaten und institutionellen Kunden schwinden

Le Temps (20.05.2019) - Professionelle Vermögensverwalter mussten sich der Erkenntnis stellen: die Grenzen zwischen privaten und institutionellen Kunden schwinden zusehends. Auch die Bedürfnisse, die bislang jedem Segment eigen waren, passen sich mehr und mehr an.

UBP in der Presse 09.05.2019

China is the place to invest in equities

Bilan (24.04.2019) - Since China joined the WTO in 2001 and adopted a capitalist approach to its economy, investors have viewed the local financial markets with an equal mix of hope and fear.