‘Wealth is never just about money’: New private banking chief on redefining how fortunes are built

The new kid on the block in Singapore’s private banking scene is a 120-year-old bank that has long been known for its strong focus on serving small and medium-sized enterprises across the region.

Hong Leong Bank, with heritage dating back to 1905, is one of Malaysia’s top five lenders. Its regional presence spans Singapore (where it is known as HL Bank), Vietnam, Cambodia, Hong Kong and China, and its strengths include its digital capabilities that allow for seamless transactions throughout the day and across different markets.

In 2023, the bank started to sharpen its focus on wealth management, which it sees as the next frontier in value creation. Earlier this year, Hong Leong Bank formed a strategic alliance with storied Swiss high-end investment firm Lombard Odier to strengthen its private banking arm in Singapore, HLB Private Bank.

Mr Jeffrey Yap, managing director and regional head of Wealth Management, who is leading the thrust into wealth management, including private banking, explains how HLB Private Bank plans to differentiate itself from many private banks that are already operating in Singapore.

Mr Yap, who has nearly three decades of banking experience, joined Hong Leong Bank in January this year from HSBC Global Private Banking and Wealth, where he was head of Investments and Wealth Solutions for South-east Asia.

Q: Hong Leong Bank says it intends to bring “new thinking, new perspectives and a new level of service” to private banking. How exactly does this work?

We recognise that to serve this dynamic and expanding affluent class of wealthy Asian customers effectively, we need to offer more than traditional banking services without compromising our long-standing heritage and commitment to “responsible banking”. This has always been the bedrock of our operating culture, cultivating a deep sense of trust with clients.

One of the things that we are doing is blending our century-old heritage of trust with a forward-looking approach – by forming strategic alliances with external partners. This allows us to move beyond traditional banking and offer our clients access to a best-in-class ecosystem of services, from global asset management to complex generational wealth planning.

Our goal isn’t just to manage wealth for today, but to be a trusted, long-term partner who helps clients plan for the future, ensuring their legacy and wealth are preserved for generations to come.

Q: How does HLB Private Bank plan to differentiate itself from many private banks that are already operating in Singapore?

HLB Private Bank is an “advisory first” bank. We do not sell investment products but provide thoughtful client-led advisory services. Wealth is never just about money. It’s about values, legacies and long-term partnership. This means understanding our client’s holistic financial picture, their aspirations and their multi-generational goals, rather than pushing pre-packaged investment solutions.

In the next couple of decades, we will witness an unprecedented intergenerational transfer of wealth, exceeding US$50 trillion (S$64 trillion) globally. Younger generations, particularly Millennials and Gen X, are more digitally savvy and have different expectations of how wealth should be managed.

That is why we are embedding digital capabilities, especially artificial intelligence, into our offerings. We hope that it will empower our relationship managers, freeing them from administrative tasks so they can focus on what matters most: delivering proactive, personalised and strategic advice that meets the needs of a new generation.

Q: How does the tie-up with Lombard Odier help HLB Private Bank?

When we set out to elevate our wealth management proposition for the rapidly growing high-net-worth and ultra-high-net-worth segment in Asean, we weren’t looking for just any private bank. We sought a partner truly aligned with our long-term vision and our clients’ evolving needs.

Lombard Odier, with its 229-year history as one of the world’s oldest private banks, stood out. Its deep expertise in preserving and perpetuating wealth, honed over two centuries, and its continued private ownership by the eighth generation of the founding families of Lombard Odier, resonates deeply with Hong Leong Bank.

This strategic alliance is a game-changer, seamlessly integrating Lombard Odier’s global wealth and asset management experience with our local expertise. This powerful combination allows us to offer sophisticated investment solutions and long-term global perspectives that rival those of any global private bank.

In addition, Lombard Odier is globally recognised for its expertise in sustainability and its thought leadership in environmental, social and governance trends. This will help us advise clients who want to use part of their wealth to do good.

Q: What is your advice to the newly rich, such as professionals, senior executives and those taking over the family business, who are looking to manage their savings and investments more effectively?

One of the primary challenges is feeling overwhelmed by the sheer volume and complexity of choices. With new wealth comes a dizzying array of investment options, tax implications and succession considerations that can be daunting, especially if one’s expertise lies elsewhere.

There’s also the risk of emotional decision-making, where market volatility or the pursuit of quick returns can lead to impulsive choices that erode wealth.

This is why Hong Leong Bank emphasises a holistic, advisory-first model rather than merely selling products. Our approach is not about the next quick gain, but about building a robust, long-term investment framework that stands the test of time.

This is especially relevant for those inheriting wealth or managing family businesses, as we help integrate personal wealth management with broader family governance and legacy planning.

Q: How do you see lifestyle and legacy intersecting for today’s wealthy clients?

For today’s wealthy individuals, lifestyle encompasses more than just discretionary spending. It includes the pursuit of passions, access to exclusive experiences, opportunities for personal growth and maintaining a standard of living that aligns with their values.

Simultaneously, legacy has evolved beyond simple estate planning. It’s about the transmission of not just financial assets, but also values, philanthropic aspirations, family governance and even the cultural imprint a family wishes to leave.

The modern wealthy client seeks to integrate these two dimensions, ensuring their wealth serves both their present enjoyment and their long-term vision for their family and society.

Shared values, bespoke services

Lombard Odier, a name synonymous with more than two centuries of private banking excellence, chose to partner Hong Leong Bank because it wanted like-minded partners who believed in long-term relationships and multi-generational stewardship.

Says Mr Vincent Magnenat, the Swiss bank’s limited partner and global head of Strategic Alliances: “We see a strong alignment with Hong Leong Bank on all fronts.” He highlighted Hong Leong Bank’s 120-year legacy and emphasis on customer-centricity and innovative solutions as key factors.

Mr Magnenat says boutique private banks such as Lombard Odier can offer a higher level of service than larger mega-banks. “Today’s high-net-worth individuals value a high degree of personalisation and bespoke multi-generational solutions.”

“As an eighth-generation independent business with strong family values, we are free from market pressures. It allows us to focus solely on our clients’ interests across generations, and this is what sets us apart,” he adds.

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