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Investors’ shifting priorities amid the global uncertainty call for conventional approaches to wealth management to be revamped. VP Bank is redefining private banking with digital innovations, impact investment solutions and transformative leadership
Volatility in the markets is rarely a good thing, save for those skilled enough to play that hand. It is, however, likely to persist given the capricious nature of Covid-19, and expected to linger post-pandemic, too.
One thing for certain, however, is its power to transform industries, hastened by the wave of digitalisation sweeping through the globe with unprecedented urgency. And in the world of private banking, this represents a timely opportunity.
Traditional models are being challenged, calling for agility and adaptability to ensure the continued viability of time-honoured institutions.
“In many ways, Covid-19 has sped up digital transformation within wealth management,” notes Pamela Hsu Phua, chief executive officer Asia of VP Bank, “and we are convinced that conventional approaches to wealth management need to be revamped.”
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According to the Liechtenstein-based private banking group, it’s a trend growing in tandem with the rise in alternative asset classes—private markets, hedge funds, real estate, art and other collectibles—that have been finding their ways increasingly into client portfolios.
However, while these provide opportunities for diversification and enhanced performance, Will Wang, Asia’s head of client solutions and strategic partnerships, believes that investors may be deterred by their increasing complexity and the lack of transparency from service providers.
To address these concerns, VP Bank has developed a digital solution, Orbit, which curates alternative investment opportunities globally and enables professional investors to access private markets without the need to open a conventional investment account with the bank.
Launched this August, the Orbit ecosystem allows clients to set up their own fund with VP Bank, thus providing the entire value chain of end-to-end services from set up and administration to investment management.
Such a platform also helps to circumvent the various issues clients face, such as high entry points, non-transparent fee structures and a lack of flexibility in product composition when investing in private markets.
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