The Swiss firm is launching a service aimed at foreigners based in Singapore, and sees a large market for those who want to be served by bankers in tune with their background and culture.

UBS has created a new service in Singapore to match up foreigners based in the jurisdiction with advisors who come from the same background to create a tailored offering.

The resident foreigner team at UBS – with three managers in place at present and expanding to about eight in a year from now – is headed by Sean Straton, who spoke exclusively to this publication about the venture and its strategy. He has joined from Credit Suisse with a pedigree as a private banker serving different types of client.

“In Singapore, there has been increasing demand for a seamless international banking experience across locations for foreigners residing in Singapore. UBS identified this as an under-served market,” Straton said.

Although exact details about foreigners by nationality and wealth are not easy to obtain, government data in Singapore shows there are around half a million permanent residents (a classification of foreign citizens given permission to work and live in Singapore on a permanent basis) in Singapore, and that does not account for all those who are living there who are foreign citizens, he continued. There are a total of more than 2 million foreigners. Of course, not all of these people will be eligible to be UBS clients.

UBS’s target for foreign clients at the unit are those with SFr2 million ($1.4 million) in investable assets with the bank, Straton said, noting that a person does not have to be a permanent resident in Singapore to be a client.

The new service offering highlights how wealth managers in international financial centres such as Singapore are continually trying to develop unique value propositions to stay one step ahead of the competition. While some of the Asian private banking market is in ferment due to Western-based banks selling local private banks to domestic players (ABN AMRO, Barclays, Societe Generale, ANZ and, possibly, Royal Bank of Canada), UBS says it is very much committed to the region.  

Explaining the foreign desk launch, August Hatecke, head of UBS Wealth Management for Southeast Asia, said: "As a global bank, operating in Singapore since 1970, we have the advantage of a strong international network as well as a deep understanding of the local market. We have had requests over the years to provide specialised financial services to foreign residents in Singapore and this new service gives us the ability to provide a seamless banking experience whether they bank in Singapore or their next home. We see tremendous potential for this client segment and this is a great opportunity for us to further accelerate the growth of our footprint in this important market."

Straton joined from Credit Suisse, where he was team leader for the Indonesia market. Before that, he was head of Westpac Private Bank, Singapore. He reports to Eddie Gan, managing director and market head, Singapore, at UBS Wealth Management.

Working with Straton are Cornelius Ehrat, formerly of Rothschilds, where he worked for just under three years; Jean-Philippe Lionnet, previously at Societe Generale’s private bank (subsequently absorbed into DBS after the latter bank took over that business); and Dominic Lane, formerly head of international markets, HSBC.

Explaining the UBS strategy, Straton said a typical client of the new team would be a foreigner who has lived and contributed to Singapore for a long period of time, plans to stay for the foreseeable future, and is probably a C-level executive or entrepreneur. At present, UBS’s resident foreigner desk handles business from all foreigners including Australians, Europeans and Brits living in Singapore. It is also looking at other non-Singaporean groups, such as South Koreans and Japanese, who are more numerous than is sometimes appreciated, he said.

It is helpful for foreigners to have a foreign-born RM to deal with because they can achieve an instant rapport as there is cultural synergy, he said.

In Straton’s own case, he is an Australian with experience of how useful it is for Australians in Singapore to be able to see an Australian RM.

“This is all about having experienced foreign client advisors serve their respective communities,” Straton added.