Gabriel Chan, Managing Director and Head of Investment Services at BNP Paribas Wealth Management in Hong Kong, offers a unique perspective on the evolving investment landscape in Greater China. With a focus on combining universal banking strengths with an open architecture approach, Chan emphasizes the importance of depth, selectivity, and personalized advisory services. In this interview, he discusses his vision for the future of wealth management in Asia, the role of technology, and the importance of human connection in an increasingly automated world.
The Shift in Client Expectations
One of the most significant trends Chan observes is the shift in client expectations. As the private wealth market in Greater China deepens, clients are no longer just seeking access to investment products but also demanding advice, interpretation, and institutional-quality solutions. This shift has led Chan to prioritize advisory services, product diligence, and a deep understanding of client needs.
"I see myself as both a builder and a gatekeeper," Chan explains. "We build the platform to ensure advisory services can be delivered consistently, but we also ensure that the right products are available and that complex solutions are explained in a way that clients can understand."
The Power of Depth and Selectivity
In the realm of private assets, Chan advocates for a disciplined approach to selectivity. BNP Paribas Wealth Management has offered private assets since 1998, but Chan emphasizes the importance of track record and due diligence over a broad product shelf. He is particularly cautious about liquidity, ensuring that the investment horizon aligns with the client's needs.
"For private assets, we care a lot about track record," Chan states. "Instead of taking a supermarket approach, we spend more time on product diligence and act as a good gatekeeper."
Keeping DPM In-House
When it comes to discretionary portfolio management (DPM), Chan believes in keeping it in-house. He argues that outsourcing DPM to external managers can blur the line between mutual funds and DPM, especially for UHNW clients who require customized service and access to managers. Chan emphasizes the importance of tailored mandates and portfolios that evolve with the client's needs.
"If DPM is outsourced in a wholesale way, what is the difference for the client between investing in a mutual fund and DPM?" Chan questions. "If you are not providing customization, the distinction becomes less clear."
Embracing Technology and AI
Technology and AI play a pivotal role in Chan's vision for the future. He sees AI as a tool to enhance efficiency and client experience, particularly in areas like translation, marketing material, portfolio analysis, and lifecycle management. However, he emphasizes that AI should support human advisors, not replace them.
"AI can help us improve efficiency and client experience," Chan says. "It can support better translation, faster portfolio analysis, and better lifecycle management."
The Future of Wealth Management in Asia
Looking ahead, Chan foresees two key forces shaping the future of wealth management in Asia: generational transition and the practical use of AI. He notes that next-generation clients are more tech-savvy and demand faster delivery, while also being more globally exposed and demanding in terms of investment options.
"Next-generation clients are more tech-savvy and expect delivery to be faster," Chan observes. "They are also more exposed to global developments and different types of investments."
To meet these evolving needs, Chan believes that the advisory model must adapt. The traditional 60-40 portfolio is no longer sufficient, and relationship managers must be equipped with better tools and specialist support. AI will play a crucial role in this transformation, but it will work in tandem with human advisors.
"Nothing can replace the human touch," Chan asserts. "We still need relationship managers to focus on relationship management, and AI should help us deliver ideas more efficiently."
A Journey of Leadership and Innovation
Gabriel Chan's career has been a journey of leadership and innovation. His time as an equity research analyst in investment banking, followed by leadership roles in equity research and wealth management, has provided him with a unique perspective on the industry. One of his most memorable experiences was covering the Macau gaming sector in the early 2000s, witnessing the rise of a regional powerhouse from the sidelines.
"I was lucky enough to be the first analyst to cover Macau gaming," Chan recalls. "To witness everything being built out and become even bigger than Las Vegas in terms of gaming revenue was amazing."
Despite his success, Chan remains grounded, emphasizing the importance of a strong work-life balance and the value of personal connections. His passion for Manchester United and the opportunity to meet Sir Alex Ferguson at Old Trafford exemplify the personal rewards that come with a career in finance.
