Q: What is the biggest change you have seen in the industry since you joined?
I joined more than 25 years ago, so a lot has changed since then, particularly with the significant advances we’ve seen in technology. This has meant that the way we interact with our clients – as well as our colleagues – has evolved. Technological advances have changed the industry even in the four years I have been at HSBC, especially when you look at what is happening with the rise of artificial intelligence (AI).
From an operations perspective, AI is being used to streamline processes, including for back- and middle-office functions. We are also using AI to manage risk more effectively on behalf of our clients, such as through the use of our Aladdin technology. In the wider wealth management industry, there has been a lot of noise around how robo-advisers can change interactions with clients, though I haven’t seen this trend come to fruition in the ultra-high-net worth segment.
Q: What is the investment topic most brought up by clients/investors?
In 2023, much of the focus was around interest rates, with clients wanting to understand how they should manage their portfolio amid the higher rate environment. However, these conversations have now settled given the general view that we are at the end of the hiking cycle and starting to see discussions turn to rate reductions. Now the focus is more on geopolitics and elections in particular.
See also: HSBC: We need to re-examine the active vs passive debate
This year we will see the largest ever election year globally, with more than half the world’s population voting – including in the US and the UK, but also in India and in the EU for a new parliament. While many of these elections may not lead to significant changes, it does create some uncertainty for what the future will bring and how the markets will react across the globe.
Q: What piece of regulation has had the biggest impact on your day-to-day role?
As a global bank, we adhere to many differing applicable laws and regulations in the markets in which we operate. Many of these regulations evolve over time.
In recent years, we have been seeing increasing demand from investors to allocate their assets in accordance with their values, including with regards to sustainable investing and other environmental, social and governance causes. As the industry looks to develop capabilities and solutions that help meet investors’ net zero and ESG ambitions, we continue to enhance our investment and risk management processes and meet policymaker expectations so that products are clear, fair and not misleading.
Read the rest of this article in the April issue of Portfolio Adviser magazine
