Banking and Finance News & Trends: Oct Week 4

Banking and Finance News & Trends: Oct Week 4

Banking and Finance News & Trends: Oct Week 4

 

1. Business Moves

i. UBS Sells 50% Stake in Swisscard to Amex

UBS is selling its 50% stake in Swisscard, the credit card provider it acquired with Credit Suisse last year, to its partner American Express (Amex). This move will make Amex the sole owner of Swisscard, and existing Credit Suisse customers will transition to UBS’s credit card platform. Swisscard will continue to operate under Amex, Mastercard, and Visa licenses without any immediate changes for cardholders or partners.

Takeaway: This divestment is part of UBS’s broader strategy to streamline its operations post-Credit Suisse acquisition, including stakes in Credit Suisse Securities (China) and a former insurance-linked investment arm of the bank.

 

ii. Kotak to Buy StanChart’s Personal Loan Business in India

Kotak Mahindra Bank will acquire Standard Chartered Bank’s personal loan business in India. The personal loan portfolio has an outstanding value of ₹41 billion (approximately S$640 million) as of September 30.

Takeaway: This move allows Standard Chartered to concentrate on its wealth, affluent and SME segments in India. The personal loan market in India is becoming increasingly competitive, driven by strong consumer demand. In response to this demand, the Reserve Bank of India has required banks to hold more capital against personal loans, leading to a slight decrease in the growth rate of outstanding loans. The deal comes as Kotak sees significant growth potential in India’s unsecured lending market, particularly in the premium segment.

 

iii. Switzerland’s SIX and CCB to Cooperate in Securities Services

SIX and China Construction Bank Corporation (CCB) signed a Memorandum of Understanding (MOU) to enhance cooperation in securities services. The partnership focuses on establishing robust business relationships between CCB and key areas of SIX, particularly within Securities Services and the SIX Swiss Exchange. It will also further internationalise Switzerland’s financial services market through knowledge exchange and joint marketing activities. SIX is known for its efficient infrastructure in the Swiss and Spanish financial centres.

Takeaway: It is noteworthy that CMU OmniClear Limited, a subsidiary of the Hong Kong Monetary Authority, has also partnered with SIX to cooperate in securities depository and settlement.

 

iv. BlackRock Seeks to Gain Market Share in Crypto Derivatives

BlackRock is increasing its presence in the crypto derivatives market by promoting its BUIDL token as collateral for crypto trades. BlackRock and its brokerage partner Securitise are in discussions with major exchanges like Binance, OKX and Deribit to facilitate this. The BUIDL token requires a minimum investment of US$5 million and is aimed at qualified institutional investors. Major crypto prime brokers already support its use as collateral.

Takeaway: Derivatives account for over 70% of total crypto trading. BlackRock aims to leverage its token to compete with established stablecoins like Tether’s USDT, which dominates derivatives trading. BlackRock’s BUIDL token pays interest to holders, potentially making it more appealing for traders compared to traditional stablecoins. If successful, BlackRock’s initiative could reshape the crypto derivatives market, challenging established players like Tether and Circle Internet Financial, whose stablecoins are commonly utilised as collateral in crypto derivatives trading. It also serves as a significant test for Wall Street’s strategy to apply its expertise in traditional finance to make inroads into the digital asset market.

 

2. People Moves

i. Banks: HSBC, BoS, DBS and BNP

HSBC: HSBC is consolidating its geographic operations into Eastern and Western markets and restructuring the organisation into four distinct business segments:

  • Hong Kong Business:
    • Led by co-CEOs David Liao and Surendra Rosha, who will also lead the Eastern Markets (APAC and Middle East).
    • Encompasses personal and commercial banking.
  • UK Business:
    • Led by the current HSBC UK chief executive Ian Stuart Ian Stuart.
    • Includes personal banking (First Direct, M&S Bank) and commercial banking, which also covers the innovation banking segment.
  • Corporate and Institutional Banking:
    • Led by HSBC North America chief executive and president Michael Roberts.
    • Includes the commercial banking business outside the UK and Hong Kong and global banking and markets.
  • International Wealth and Premier Banking:
    • Led by chief executive of the group’s wealth and personal banking business, Barry O’Byrne.
    • Includes the premier banking and wealth management businesses outside of Hong Kong and the UK, and the global private bank and wealth manufacturing businesses.

Additionally, Pam Kaur will be appointed as the group CFO and HSBC’s first female CFO. The new structure will come into effect on January 1, 2025.

BoS: The Bank of Singapore, OCBC’s private banking division, appointed Canis Chi as the new market head for Greater China. Chi, who will be based in Hong Kong, has over 20 years of industry experience. She previously served at the Bank of China (Hong Kong) for a decade, during which she successfully developed a team of relationship managers. She also has prior experience with Deutsche Bank and Citibank.

DBS: DBS Private Bank added Thewinta Rattanatam as a team leader to its Bangkok office. Rattanatam joins from LGT, where she served as a Thai market relationship manager based in Hong Kong.

BNP Paribas: BNP Paribas Wealth Management (BNP Paribas WM) added senior banker Sushant Hastu to its Singapore office. Hastu joins from Citi.

 

ii. Financial Services: SGX FX

SGX FX: SGX FX appointed Hugh Whelan as the new head of liquidity management and data strategy. Whelan, who previously led EBS Direct at CME Group, will be based in London. He will focus on driving growth in the liquidity provider client segment, developing data products, and strengthening relationships with key sell-side clients. Whelan’s track record includes successfully launching and developing EBS Direct into a bilateral FX trading venue now owned by CME Group, achieving commercial success, increasing client acquisition, and promoting product innovation across various FX platforms.

 

iii. Investment: M&G, Raffles Family Office and OLZ

M&G: M&G Investments appointed two intermediary distribution heads.

  • Kristy Wong, based in Hong Kong, will focus on expanding relationships with private banking and retail channels in Greater China. Wong has over 15 years of experience and has previously served at PineBridge Investments.
  • Alfred Foo, based in Singapore, will manage intermediary distribution in Southeast Asia. He will focus on deepening connections with private banks and expanding the retail intermediary network.

Raffles Family Office: Raffles Family Office added Chris Chong as a board advisor. Chong currently serves as the Executive Vice President for South and Southeast Asia at LVMH. He previously held roles at CapitaLand Investment and the Singapore Economic Development Board. Meanwhile, Kevin King, a renowned banker in Greater China, has recently stepped down from his position.

OLZ: OLZ appointed Michael Yong-Haron as CEO to spearhead strategic growth in Asia. Yong has over 25 years in private banking and wealth management and was most recently the CEO of BNP Paribas Wealth Management Hong Kong. He will focus on expanding OLZ’s wealth management platform, introducing tailored investment solutions for Asian clients, and positioning OLZ Hong Kong as a premier advisory destination for sophisticated private and institutional clients.

 

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Image Credits:

  • Reuters
  • People Matters