Chris Tsang (MBA 2019) unveiling the mysteries of private banking
Catering exclusively to affluent clientele, private banking exudes an air of mystery. What does the realm of private banking encompass? What challenges do relationship managers (RMs) face in their roles? Let’s hear from Chris Tsang (MBA 2019), assistant vice president for Strategy Business Planning at DBS Private Bank, as he unpacks these insights.
Since graduating from university, Chris has immersed himself in the private banking and wealth management sector, working for local and foreign institutions, and previously serving as a RM. While private banking is commonly seen as enigmatic, he chuckles, “I discovered it’s not as mysterious as perceived once I began working in it.”
Thriving through fierce competition with exceptional services
It is well known that private banks specialise in providing wealth management and investment services to high-net-worth (HNW) individuals, even assisting them with business development. According to Chris, the entry requirements for private banks vary, with minimum investable assets ranging from millions to tens of millions of US dollars. Most clients are business owners or heirs, with a significant number now coming from the mainland China. “New clients completely unfamiliar with private banking services are rare, intensifying competition among private banks.”
The assistance these top-tier clients seek from RMs, however, may not always fall within the service scope of private banks: “For example, if a client wishes to expand into Southeast Asia or other markets, or engage in mergers and acquisitions (M&A) there, they inform their RM of their needs. We then act as intermediaries, connecting with other departments like commercial banking to provide cross-business services. In the eyes of our clients, we operate as one bank, one team!”
From the front office to the middle office, Chris shares that his current role allows him to gain a clearer understanding of the overall private banking business landscape.
Exploring AI application to enhance work quality and efficiency
RMs also encounter various unique requests. For example, many clients have shown interest in investment immigration earlier and have asked RMs to assist in finding schools for their children. Some even request help in securing concert tickets. “While these tasks may not fall within our core business, we strive to understand clients’ needs and assess trends to determine if integrating these services is feasible. Clearly, it is not that straightforward.”
In private banking sector, Chris explains that each RM typically manages a portfolio of approximately dozens wealthy clients. Its strategic business development department, to which Chris belongs, focuses on supporting the private bank by providing business analysis, strategic planning, goal setting, and launching diverse products and services to assist RMs in growing business. Through continuous exploration and reinvention of private banking products and services, this not only lightens RMs’ workload but also empowers the bank to deliver customised solutions at its level, thereby bolstering competitiveness and fostering stronger client loyalty. He also explains that the entire private banking is exploring the potential applications of AI, such as replacing current chatbots and extending intelligent services around the clock.
Transitioning from the front office to the middle office, Chris acknowledges that this shift allows for a broader understanding of the entire private banking landscape, albeit with increased workload. Reflecting on his decision to pursue an MBA at CUHK in 2017 while working, he notes a similar motivation — to broaden his horizons. “I appreciate CUHK Business School’s MBA programme for its robust alumni network, particularly its strength in the Greater Bay Area. The programme also equipped me with new knowledge, including entrepreneurship. My project on medical appliances was truly eye-opening.”
For alumni interested in pursuing a career in private banking, Chris advises that having an established extensive network and client resources is important. For those without, gaining experience and building connection in retail or corporate banking beforehand can facilitate a more advantageous transition into private banking roles.
First published in the CUHK Business School Alumni Website on 9 July 2024, this article was republished with permission from the School’s Alumni Affairs and Development Office. The featured images are courtesy of the Alumni Affairs and Development Office.