With the outlook for the global economy highly uncertain due to the Russia-Ukraine war, supply disruptions and rising inflation, high net worth individuals in Asia and the rest of the world are bracing themselves for a sustained period of heightened market volatility. Against this backdrop, HSBC Global Private Banking aims to help its clients manage these risks by leveraging their international connectivity and comprehensive capabilities to pursue investment opportunities and diversification.
“With the ongoing uncertainty, whether it’s the inflation threat, more aggressive Fed rate hikes, or the Russia-Ukraine war, global diversification and risk management become extremely important for our investors. HSBC Global Private Banking aims to help our clients diversify their portfolios across assets and geographies in the most optimal way possible,” says Abhishek Mehrotra, Managing Director and Senior Desk Head, Philippines and Japan at HSBC Global Private Banking.
This strategy of diversification sits well with high net worth and ultra-high net worth clients in the Philippines, who have traditionally been firm believers in such an approach, not just when it comes to investing, but in their personal and professional lives.
“Clients in the Philippines tend to have footprints in multiple locations to capture the strengths that each place has to offer. And this is where HSBC’s international connectivity and universal bank model can benefit them, as we are comprehensively covering both the East and the West,” says Siew Meng Tan, Regional Head of HSBC Global Private Banking, Asia Pacific.
“We are present in the key financial centers globally, in Hong Kong, Singapore, London, Switzerland and the US, enabling us to support our clients as they expand their businesses, and as their families look towards living in different parts of the world. Many successful Filipinos send their children overseas for education, or to invest in real estate abroad, and the US is one of their favorite markets,” she adds. “We have a dedicated Asia coverage team based in the US, which is comprised of relationship managers, investment counsellors, credit advisors and wealth planners with extensive experience relevant to clients from the US-Philippines corridor, and who have great interest in international mortgages and geographical diversification.”
Meeting Changing and More Sophisticated Wealth Needs
The needs of Asian ultra-high net worth families are likely to evolve over time, with much of the wealth accumulated by entrepreneurs who built, and continue to run, successful businesses.
“We have supported many of these entrepreneurial families through the years, developing an intimate understanding of their needs across businesses, private wealth, and even generations. This is especially true in the Philippines, where HSBC first established an office in 1875 offering financial services to communities of exporters and merchants,” explains Mehrotra.
Today, HSBC Global Private Banking clients in the Philippines can tap on the full capabilities of the entire group—from personal transaction banking services to commercial banking services—to meet their ever-changing needs at every stage of the clients’ wealth journey. In particular, there is a growing demand for solutions that can help ultra-high net worth families manage a seamless transfer of wealth to the next generation.
“Wealth preservation is a key priority for our Philippines clients, and HSBC has been very instrumental in inter-generational wealth transfer for ultra-high net worth families in the country. HSBC Trustee, which has been around for over 75 years in Asia, is very well versed with managing family dynamics, and well placed to support our clients in succession planning and transferring wealth to the next generation,” says Mehrotra. “We can help our clients find solutions to a broad range of wealth planning needs including family governance and family business succession and working with next generations. Philippines clients have a strong sense of community and believe in giving back to the society in various ways. We can help secure a wider legacy and make a positive change regardless of where our clients are on their philanthropic journey.”
Engaging through Digital
As private banking clients become more comfortable utilizing technology for their wealth needs, HSBC is engaging them through multiple digital channels. These include mobile apps that enable remote transactions, or through secured communication platforms via WhatsApp and WeChat.
Reflecting the bank’s commitment to digitalization, HSBC Global Private Banking is investing more than US$100 million in Asia over a two-year period to build and innovate its core banking and digital platforms.
“This investment is very timely, and we accelerated it over the last 12 to 18 months as engaging with our clients through digital channels became critical due to Covid-19 lockdowns in countries such as the Philippines,” says Tan.
“When we launched our chat applications on secure platforms such as WhatsApp and WeChat, one of the first clients to adopt this solution was a key Philippines client,” she recalls.
Investing in the Future
As the next generation of Philippines clients come to the fore, there has been an increasing adoption of investment trends related to the New Economy, ESG (Environmental, Social and Governance), and alternative investments.
In the area of sustainability, HSBC is keeping pace with its clients by committing to provide between US$750 billion and US$1 trillion of sustainable financing and investments over the next 10 years to support the net zero transition.
In recent years, there has also been growing interest in private assets and alternative investments, as high net worth investors in the Philippines seek to reduce volatility and improve yields in their portfolios. With its global expertise in alternatives, HSBC is well-positioned to serve investors in this emerging space. In 2021, trade publication Asian Private Banker named HSBC Global Private Banking as the “Best Private Bank for Alternative Advisory” for the third consecutive year.
HSBC’s success is also being recognized in other aspects of the private banking world. Among the seven awards HSBC Global Private Banking received from Asian Private Banker last year were the “Best Private Bank for Wealth Planning Services” and blue-ribbon “Best Private Bank in Asia Pacific”; accolades that reflect the progress it has made in delivering industry-leading client offerings and services.
These awards reflect HSBC Global Private Banking’s ongoing mission to support its high net worth and ultra-high net worth clients in the Philippines and the rest of Asia as they seek to navigate a highly volatile landscape, while looking to capture opportunities that may emerge.
“The challenges we are witnessing come with their fair share of opportunities, and many of our Philippines clients are actively looking towards HSBC to help them navigate through these times and tap those opportunities,” says Mehrotra.
Disclaimer
The information contained in this article has not been reviewed in the light of your individual circumstances and is for information purposes only. It does not purport to provide legal, taxation or other advice and should not be taken as such. No client or other reader should act or refrain from acting on the basis of the content of this article without seeking specific professional advice. Issued by The Hongkong and Shanghai Banking Corporation Limited.