New regulations and declining margins are currently shaping the intermediary business. A proactive and customer-oriented attitude helps to successfully meet these challenges.

By Thomas Jost, Head of Intermediaries, VP Bank Ltd Singapore Branch

New laws and regulations are often very time-consuming and costly for intermediaries. Although new laws are usually subject to transitional periods, financial intermediaries have to deal with new guidelines on an ongoing basis. Preparations usually mainly concern the areas of IT implementation, reporting, as well as the education and training of employees.

Another challenge is the falling margins, which are weighing on the earnings side of banks and intermediaries, both in Asia and in Europe. Coupled with an increasingly complex landscape of tools and platforms for intermediaries as well as financially savvy clients with sophisticated requirements, this means that efficient, automated and cost-effective processes are becoming ever more important.

Strategic And Reliable Partner For Intermediaries

The value chain in the financial sector is also changing. New fintechs offer the opportunity to rethink business models and generate alternative sources of income. Since cooperation between fintechs, banks and intermediaries will shape the future, it is advantageous for new players in the market to be able to turn to proven and experienced institutions.

In the intermediary business, VP Bank has been working side by side with clients for over 60 years and supports them as a reliable partner.

Due Diligence Doesn’t Stop There

Working in tandem with our clients is key, especially so when it comes to regulatory requirements. For example, establishing complete and meaningful Know-Your-Client (KYC) profiles that live up to current and coming regulatory expectations is a shared duty between the External Asset Manager (EAM) and VP Bank.

But client due diligence doesn’t stop there. What about transaction pattern analysis, flow-of-funds documentation, or cross-border issues? Recognizing the ever-increasing importance of regulatory compliance, VP Bank has put in place processes and solutions, which support our clients in fulfilling their regulatory duties.

We are constantly working on further solutions that we will be able to offer in the future in order to minimize and, where possible, automate the regulatory burden on our intermediaries.

Feel The Pulse

By anticipating regulatory changes and expectations, and designing our processes and tools accordingly, we will efficiently support our clients and thus relieve them of many chores which today still take up a lot of time. Ultimately, with this product offering, we will support the intermediaries' future success.

To enable us to feel the pulse and understand the evolving needs of intermediary clients, VP Bank maintains an active exchange of knowledge and experience with its clients. We discuss current topics and industry best-practice at specialist events and webinars. In this way, we can be close to our clients and work with them to develop solutions that save costs and time, so that there is enough time for the intermediary's core task - personal client care.

Long-Standing Expertise to Serve The Clients’ Needs

Since VP Bank's foundation in 1956, the intermediary business has been our core competency. Thanks to our long-standing expertise and very experienced employees, VP Bank is highly skilled in providing client advisory services. With specific training courses on the latest regulatory changes, we ensure that our advisors always have the necessary know-how to discuss and support their clients at eye level.

To provide intermediary clients with round-the-clock information, VP Bank offers access to the ProLink platform. ProLink contains bank-relevant information, forms, investment ideas and information on complex topics such as financial services legislation, automatic information exchange or financial market guidelines. Combined with the specialist knowledge of the asset managers and fiduciaries, a strong bundle of competencies is created.

Modern Infrastructure

In Asia, the Bank has been collaborating with independent asset manager for over 10 years and is, therefore, a well-established and renowned partner for financial intermediaries, who particularly appreciate the wealth of experience and modern infrastructure that the bank has to offer.

VP Bank in Singapore commands one of the largest teams amongst banks specialized in servicing External Asset Managers and is well-positions to serve the growing number of financial intermediaries in Asia.

Recognizing The Bank’s Superior Position

Earlier this year, VP Bank Ltd Singapore Branch was named «Best External Asset Manager Service Provider», recognizing the bank’s superior position as an industry leader and its unique focus on the intermediaries business. We also won «Best Private Banking Regional Partnership». The two awards were presented by WealthBriefingAsia, an Asia-focused daily news and analysis service of the WealthBriefing Network.

In addition, in a survey with family offices and independent asset managers across Singapore and Hong Kong on who they consider the best intermediary service provider, VP Bank is also voted «Best in Service» at Citywire Asia EAM Desk Awards 2020 for our service accessibility, the expertise of our advisors as well as the speedy and seamless client onboarding. The awards we won are a testament that we are delivering right on our strategy and creating value for our clients.

About VP Bank Group
VP Bank Ltd was founded in 1956 and, with its 979 employees (908 in full-time equivalents) as of the middle of 2020, ranks amongst the largest banks in Liechtenstein. Today, VP Bank is present with offices in Vaduz, Zurich, Luxembourg, Singapore, Hong Kong and Road Town (British Virgin Islands). VP Bank Group offers tailor-made asset management and investment advisory services to private clients and financial intermediaries. Due to the open architecture, clients benefit from independent advice: The products and services of leading financial institutions as well as in-house investment solutions are included in client recommendations. VP Bank is listed on the Swiss stock exchange SIX, and has an «A» rating from Standard & Poor’s. The bank has a sound balance sheet and capital base. Its anchor shareholders take a long-term view, guaranteeing continuity, independence as well as sustainability.

About VP Bank Ltd Singapore Branch
VP Bank Ltd Singapore Branch is a boutique private bank with a client-centric business philosophy. With a presence in Singapore since 2008, it is the Asian branch of the Liechtenstein-based VP Bank Group.

VP Bank Ltd Singapore Branch provides specialized wealth management solutions and family office services for high-net-worth clients and professional asset managers and is dedicated to the protection and growth of clients’ wealth. The bank offers a holistic suite of services in wealth management. Apart from private wealth management, VP Bank Ltd Singapore Branch provides comprehensive services for asset managers and other financial intermediaries. The service offering comprises a trading platform, banking services - including e-banking and mobile banking - and operational support. Partnership arrangements with professionals include tailor-made investment advisory, discretionary management solutions, and custodian services.

VP Bank was awarded Best External Asset Manager Service Provider and Best Private Banking Regional Partnership at Greater China WealthBriefingAsia Awards for Excellence 2020 and Best Asia EAM Service Desk at Citywire Asia EAM Desk Awards 2020.