Banking and Finance News & Trends Recap: July Week 3

Banking and Finance News & Trends Recap: July Week 3

Banking and Finance News & Trends Recap: July Week 3

Table of contents

  1. Finance Industry News
  2. Investment, PE & VC News

Finance Sector News

1. Trend: Finance Industry’s Use of GenAI Quadruples

The use of generative artificial intelligence (GenAI) in the financial sector has significantly quadrupled over the past year. The findings are reported by Capgemini Research Institute, which surveyed 1,100 executives from large organisations across 14 countries and 11 sectors. In 2023, only 6% of financial services organisations had GenAI capabilities, but this number rose to 21% in 2024. The report highlights that GenAI adoption has improved operational efficiency, customer experience and sales. Most financial firms, such as Morgan Stanley, are optimistic about GenAI’s potential to drive revenue and innovation. However, notable risks include regulatory explainability and the threat of sophisticated deepfakes deceiving customers.

 

2. Market Sentiment: Bitcoiners May Gain from Trump’s Re-Election

Bitcoin miners and crypto companies might benefit the most under a potential second Trump presidency due to his pro-crypto stance. This viewpoint is gaining traction as Trump’s odds of re-election increase. Recent polls show Trump leading, and his support for crypto, particularly Bitcoin mining, has already led to significant stock price increases for related companies like Marathon Digital and Riot Platforms.

Trump’s interaction with Bitcoin miners and his statements on Truth Social have bolstered the sector, with some firms exploring IPOs. The crypto industry anticipates that Trump might appoint a more crypto-friendly SEC chair, easing the regulatory challenges that have hindered the sector.

While a Trump win could open more banking services for US-based digital asset trading platforms, offshore rivals might face disadvantages due to stricter US regulations and Trump’s trade policies. Additionally, Trump’s opposition to central bank digital currencies (CBDCs) resonates with many crypto enthusiasts who see CBDCs as a threat to financial privacy.

Read the full article about how Bitcoiners can gain from Trump’s re-election.

 

3. Business Moves

i. DBS Launches a BlackRock-Managed Fixed-Income Portfolio

DBS launched an exclusive DBS CIO Target Maturity Fund 2027, a fixed-income portfolio managed by BlackRock. The fund consists of over 50 investment-grade corporate and low-risk government bonds that aim to provide higher returns than cash or money market funds over three years and are expected to reap steady payouts. It’s accessible to retail customers with a minimum investment of S$1,000 or US$1,000.

Read the full article about DBS’s portfolio that Blackrock manages.

 

ii. OCBC Goes Regional with Programme for Children of HNW Clients

OCBC launched OCBC GENesis, a regional programme for the children of its premier private client (PPC) customers. OCBC PPC, launched in 2018, serves HNW individuals and offers services like trusts, insurance, and investment opportunities. The programme aims to help the bank build new relationships with the next generation and deepen current client relationships. Initially piloted in Singapore in 2019, it now includes clients’ children in Malaysia and plans to expand further. OCBC GENesis addresses the increasing concern of PPC customers about preserving wealth across generations. By 2030, an estimated US$2.5 trillion in intergenerational wealth is expected to be transferred to Asia.

Read the full article about OCBC GENesis.

 

iii. Hong Kong Launches Asia’s First Inverse Bitcoin

Asia’s first inverse bitcoin exchange-traded fund (ETF), which allows investors to profit from a decline in bitcoin’s value, is set to launch in Hong Kong on July 23. CSOP Asset Management will introduce the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the city’s stock exchange. This ETF aims to benefit from the volatility of cryptocurrencies, especially after Bitcoin experienced a rough second quarter. CSOP’s inverse bitcoin ETF seeks to mirror the inverse daily performance of the S&P Bitcoin Futures Index. CSOP previously launched Asia’s first bitcoin futures ETF in 2022, which saw significant growth but has recently declined in market value.

Read the full article about Hong Kong’s inverse Bitcoin.

 

iv. Deutsche Bank to Hire More US Private Bankers

Deutsche Bank’s US wealth unit, led by Arjun Nagarkatti, aims to hire up to a dozen senior private bankers this year to strengthen its presence in San Francisco and Los Angeles. The move comes as the bank seeks to achieve double-digit revenue growth by focusing on HNW clients. Despite challenges, like stagnant first-quarter revenue, Deutsche Bank plans to compete with major firms like Goldman Sachs and JPMorgan Chase by becoming a key European rival in the US market. The strategy includes:

  • Expanding in regions like Southeast Asia and the Middle East.
  • Leveraging personal relationships for recruitment.
  • Focusing on specialised, high-quality services for ultra-rich clients.

Read the full article about Deutsche Bank’s private banking plans.

 

4. People Moves:

i. Banks: UOB, Julius Baer, Citi, Standard Chartered and Manulife

UOB: UOB announced a reshuffle in its management team that will affect the retail banking and technology effective September 1.

  • Susan Hwee will become the head of group retail. Hwee, who has been with UOB since 2001, has over 35 years of experience in technology and banking. She currently leads group technology and operations (GTO), where she spearheaded the bank’s strategy and transformation and strategy of its digital and data infrastructure, including the development of the UOB TMRW digital platform. Hwee will replace
  • Eddie Khoo, whom Hwee is succeeding, will transition to a senior advisor role for UOB Vietnam to shape the retail banking there.
  • Lawrence Goh will take over Hwee’s position as head of GTO. Goh has over 30 years of IT experience. He currently serves as COO for GTO and head of group infrastructure platform services at UOB.

Julius Baer: Julius Baer made two senior hires.

  • Stefan Bollinger joins as the next CEO. Bollinger comes from Goldman Sachs, where he was co-head of private wealth management for EMEA and a partner for 14 years. His appointment follows the resignation of previous CEO, Philipp Rickenbacher. Bollinger has also served at JPMorgan Chase and Zuercher Kantonalbank. Bollinger’s global experience is expected to bring fresh perspectives to Julius Baer, which has been traditionally focused on wealth management and has expanded in Asia and the Middle East. Despite Bollinger’s lack of top-level management experience, his selection is seen as a strategic move to stabilise and strengthen the bank amidst heightened competition and regulatory scrutiny.
  • Urs Brudermann, a former Deutsche Bank executive, was named the group head for Thailand. In this newly created role, Brudermann will manage the bank’s offshore Thailand operations and its joint venture with Siam Commercial Bank, SCB Julius Baer. Brudermann has over 24 years of wealth management experience and experience with various Southeast Asian markets.

Citi: Citi appointed Ed Huntsman as the head of financing and markets, for regions including Japan, Asia North & Australia, and Asia South. Huntsman, who has been with Citi since 2007 and recently served as the global head of financing for spread products, will relocate from London to Hong Kong. He will continue his previous responsibilities while developing a top-tier financing platform to support liquidity and collateral needs for Citi’s clients in Asia.

Standard Chartered: Standard Chartered Private Bank recently appointed several experienced relationship managers and team leaders across its global offices in Singapore, Hong Kong, and the UAE.

Singapore:

  • Nicholas Cheng joins as Managing Director, Head of Private Markets Group. Cheng has 30 years of experience and has built his career in product origination and distribution in private and public markets across Asia at top Asian and European banks. Recently, he has specialised in strategic advisory for C-suite executives and franchise development in collaboration with ultra-high-net-worth individuals (UHNWI) and institutional limited partnerships.
  • Hedi Dorai joins as Executive Director, Relationship Manager. Dorai brings over 20 years of experience from leading private banks, most recently Credit Suisse. Dorai has a background in investment advisory and portfolio management for high-net-worth (HNW) and UHNW clients in Asia, the Middle East, and Europe.
  • Au Soo Leng joins as Executive Director, Relationship Manager. Au has 30 years of experience in private banking and wealth management at HSBC, and focuses on HNW and UHNW clients.
  • Royston Ow Yong joins as Executive Directors, Relationship Manager. Yong has 25 years of experience and a proven track record in building relationships with UHNW clients in Indonesia and Singapore.
  • Angelina Wee joins as Executive Director, Relationship Manager. Wee has two decades of industry experience, and most recently worked at UBS.
  • Hong Shuqin joins as Director, Relationship Manager. Hong has nearly 20 years of experience in client relationship management, most recently at Deutsche Bank.
  • Gabriel Koh joins as Associate Director, Relationship Manager. Koh has over 15 years of private banking experience, mainly at UBS.
  • Sarah Lim joins as Head of Investment Advisory, reporting to Foo. Lim has two decades of investment advisory experience in Asia, most recently at UBS. Lim will lead the ASEAN and Greater China investment advisory team.

Hong Kong:

  • Jeffrey Song joined as Executive Director, Relationship Manager. Song has 12 years of private banking experience, and spent much of his career at Credit Suisse.
  • Charlene Mak rejoined the bank as Executive Director, Relationship Manager. Mak has 30 years of experience as a relationship manager for Greater China clients.
  • Helen Tong joins as Managing Director, Relationship Manager. Tong has 16 years of experience with leading international banks in Hong Kong and most recently served at Credit Suisse.
  • Ramon Au Yeung joined from Pictet Wealth Management as Executive Director, Relationship Manager. He has over 35 years of experience in wealth management and private banking, and covers markets in Greater China and the Philippines.

The UAE:

  • Alasdair Scarr returned to the bank as Executive Director, Relationship Manager in June. Scarr has over 35 years of experience in the financial services industry and most recently served at Citi.
  • Ahmad Anabtawi joined as Executive Director, Relationship Manager, also reporting to Mithani. He has over 25 years of banking experience in the Middle East, and most recently worked at Mashreq Bank.

Goldman Sachs: Goldman Sachs appointed Jaehoon Ahn as the new head of investment banking in Korea, co-country head of Korea, and co-branch manager of its Seoul branch. Seok Yong Lee remains the unit’s COO. As co-country head, Ahn will collaborate with Jae Joon Choi to oversee the firm’s strategy and activities in Seoul. Ahn joins from SK Bioscience, where he was the VP and head of strategic planning and corporate development. He also has a background in leading global investment banking firms in Seoul.

Manulife: Manulife announced key senior leadership appointments to its Asia Distribution Team.

  • Bonnie Qiu joins as Chief Distribution Officer, Asia, effective August 19. Qiu will focus on developing and expanding Manulife’s multi-channel distribution platform across 12 Asian insurance markets. Qiu comes from HSBC, where she was the Managing Director of Business Development Asia Pacific (APAC), responsible for increasing collaboration revenues among various business lines. She has over 20 years of global experience at HSBC and has held C-suite and senior-level roles in mainland China and Taiwan.
  • Rishi Srivastava will join as Chief Agency Officer, Asia, on the same date. Srivastava will focus on driving sustainable growth in the agency channels using digital tools and unique propositions. Srivastava comes from AIA, where he was the CEO of Group Agency Distribution, leading the agency business and its digital transformation. Prior to AIA, he served as Managing Director & CEO of Tata AIA Life Insurance and was a Director at AXA Financial Indonesia.

Read the full article about UOB’s retail banking leadership reshuffle.

Read the full article about Julius Baer’s CEO from Goldman Sachs.

 

ii. Fintech: Broadridge

Broadridge: Financial technology provider Broadridge appointed David Runacres as president of its APAC operations with immediate effect. Runacres will lead the firm’s regional operations and serve as the senior country officer for Japan. Runacres has over 30 years of experience, including 12 years at the London Stock Exchange Group (LSEG) and roles at SunGard Systems and Thomson Financial in in Hong Kong, Singapore and Tokyo.

Read the full article about Broadridge’s APAC president from LSEG.

 

Investment, PE & VC News

1.Business Moves

i. Blackstone Sees Potential in Asia’s Private Credit Business

Blackstone recently reported its financial performance for Q2 2024. Over the past three months, Blackstone raised $39.4 billion, exited $23.5 billion, and invested a record $34 billion. This quarter marks Blackstone’s most active since 2022, particularly in a market where other investment firms have been cautious.

Blackstone’s CEO indicated a strategic shift towards more aggressive investments, targeting high-potential sectors like AI and energy infrastructure. Adopting this strategy amid market fluctuations showcases its confidence in identifying and capitalising on undervalued assets and emerging sectors, aiming for substantial long-term returns. Blackstone plans to launch new funds focusing on private credit and infrastructure and to expand its presence in Asia. The firm seeks to cater to wealthy individual investors and is preparing several new products in the private wealth channel.

Read the full article about Blackstone’s investment strategy.

Read the full Chinese analysis of Blackstone’s investment strategy.

 

ii. Lanchi Ventures to Expand in Hong Kong

A year after separating from the US venture capital firm BlueRun, Lanchi Ventures, its former China arm, is focusing on building a new identity and expanding into Hong Kong. This early-stage VC firm aims to leverage Hong Kong’s status as a financial hub to connect Chinese AI entrepreneurs with global markets. Lanchi Ventures continues to focus on tech-driven early-stage investments, particularly in AI, 3D interactive technologies, and robotics. Notable investments include electric vehicle maker Li Auto and AI start-ups like Genspark AI and OPTIX. Despite challenges due to tightened IPO rules in China, difficult fundraising, and US export curbs on advanced tech, the firm is optimistic about China’s potential to lead in the next phase of the AI race.

Read the full article about Lanchi Ventures’s expansion in Hong Kong.

 

iii. HKIMC Makes its Third Tech Investment in a Month

Hong Kong Investment Management Company (HKIMC) and renowned humanoid robot company General Galaxy announced their collaboration to expand the ecosystem. This marks HKIMC’s third investment in just a month, following its earlier investments in SmartMore and Biomap. HKIC, often referred to as the “Hong Kong version of Temasek,” manages a HK$62 billion fund focused on attracting investments and nurturing innovation in Hong Kong. The event was attended by key figures, including Hong Kong’s Financial Secretary, Paul Chan and HKIC’s CEO, Chen Jiaqi.

The collaboration aims to integrate and direct resources to support Galaxy General’s development in Hong Kong and establish an “International Embodied Intelligence Talent Exchange Centre” with local universities. HKIMC’s investments reflect Hong Kong’s aggressive strategy to develop its tech industry via prioritising projects that can boost the industrial ecosystems and stimulate related sectors.

Read the full Chinese article about HKIMC’s investment in General Galaxy.

 

iv. Noah Launches New Hong Kong and Japan Offices

Chinese asset manager Noah Holdings is expanding in the Asia Pacific region to meet the growing global investment demands of its wealthy Chinese clients. The firm is enhancing its Hong Kong office and plans to open a new office in Japan. Noah recently expanded its Hong Kong office space by a third to accommodate a 10 to 15% staff increase. Hong Kong is crucial to Noah’s global strategy, serving many of its clients, 70% of whom are private entrepreneurs. Noah is also considering expanding into Dubai.

 

v. Shenzhen Luye Bags the Largest Financing Deal in Shenzhen

Luye Pharma Group announced that its subsidiary, Shenzhen Luye, will receive a strategic investment of up to RMB 1.6 billion from Shenzhen Luye Private Equity Investment Fund. This investment will help enhance Shenzhen Luye’s growth, improve financial stability, and support innovative R&D projects. Nanjing Luye, another subsidiary known for its oncology expertise, will be integrated into Shenzhen Luye to maximise asset value. The investment aligns with Shenzhen’s goal of developing an innovative pharmaceutical industry backed by government support and collaborations between pharmaceutical companies and financial investors. The funds will bolster Luye Pharma’s cash flow, profitability, and overall competitiveness, facilitating advancements in R&D and marketing strategies. This move is expected to drive high-quality growth and better serve patients while increasing shareholder value.

Read the full Chinese analysis of HKIMC’s investment.

Read the full article about Noah’s plans for Hong Kong and Japan.

Read the full article about the 1.6b yuan investment in Shenzhen Luye.

Read the full Chinese analysis of the investment in Shenzhen Luye.

 

2. People Moves: Xiaomi Private Equity, iCapital, EquitiesFirst, PIF

Xiaomi: Xiaomi’s founder, Lei Jun, took on the role of the chairman of the investment committee for the newly formed Xiaomi Zhizao Fund. This fund, a collaboration between Xiaomi and several other partners, has increased its total pledged capital to 10 billion yuan. The Xiaomi Zhizao Fund, managed by Xiaomi Private Equity, primarily focuses on equity investments in areas like integrated circuits, new information technology, smart manufacturing, new materials, artificial intelligence, displays, automotive electronics, and smart devices. This aligns with Xiaomi’s strategic plan to enter the automotive industry, as announced in March 2021.

The fund’s investors include both government-guided funds and industry capital, with notable contributions from Beijing’s municipal government and several other provincial-level state-owned platforms. The fund has already made several investments, notably in companies involved in the automotive supply chain, which supports Xiaomi’s goal of vertically integrating its car manufacturing business.

Lei Jun’s approach leverages Xiaomi’s extensive investment network to support its strategic initiatives. This strategy mirrors the broader trend of major tech companies like Huawei, CATL, and BYD using industrial investments to drive innovation and growth in their respective fields.

iCapital: Former Goldman Sachs partner Tuan Lam was named the APAC head of iCapital’s alternatives platform. Lam will oversee the firm’s growth and business development efforts across APAC, including Hong Kong, Singapore, Tokyo, and Australia. Lam has over 30 years of experience in asset management and investment banking. At Goldman, he held several senior positions, including chairman of the client solutions group and head of client business for Goldman Sachs Asset Management in Asia ex-Japan. Edwin Chan, the current head of Asia, will remain with iCapital and focus on strategic client and business development as the head of client solutions in APAC.

EquitiesFirst: Global specialist in asset-backed financing, EquitiesFirst, appointed David Oh as executive director. Oh will focus on building and managing relationships with South Korean clients and report to the broader Asia Group. Oh has over 15 years of experience in investment banking and technology finance and has a background in capital markets, M&A, IPOs, and private fundraising. He has also managed assets for HNW individuals in South Korea and Singapore. Before joining EquitiesFirst, Oh advised on the notable M&A transaction of Woowa Brothers Corp by Delivery Hero and has worked at JP Morgan Securities and Standard Chartered Bank in South Korea.

PIF: Saudi Arabia’s sovereign wealth fund, which manages around US$925 billion, appointed Fahd AlSaif as the head of its investment strategy and economic insights division. The fund, a key part of Crown Prince Mohammed bin Salman’s plan to diversify the economy away from oil, has invested heavily in projects like NEOM, a vast urban and industrial development on the Red Sea coast. AlSaif will continue to lead the global capital finance division while developing the fund’s overall investment strategy. The fund is being reorganised to focus on more successful investments, and some mega projects have been scaled back due to rising costs.

Read the full article about Lei Jun’s new fund.

Read the full Chinese analysis of Lei Jun’s entry into the automotive sector.

Read the full article about PIF’s new investment strategy head.

 

Gain an Edge with Timely Insights

To discover how to use these market insights to your advantage, arrange a coffee chat with our financial services recruitment consultants today:

With years of experience in providing bespoke HR and business consultancy services worldwide, we have the expertise to offer a comprehensive perspective of the market to propel your success.

For employers: If you need support beyond the banking and finance sectors, our executive search firms in Singapore and China also have specialised teams for various industries, including:

 

Image Sources:

  • Straits Times
  • CNBC
  • Yicai Global
back to blog listing
Categories
Recent Posts