A Wealth Of Experience
With a unique expertise honed since its founding, VP Bank is well positioned to meet the changing needs of the region’s high-net-worth individuals and financial intermediaries
The demand for private banking services in Asia has soared alongside the region’s burgeoning wealth. Seismic shifts in the global economy and world developments have increasingly shaped how wealthy individuals and families manage their investment and wealth management activities through family offices, with an increased focus on growing intergenerational wealth, sustainable investing, and charitable giving.
Founded as an extension of Liechtensteiner entrepreneur Guido Feger’s trust company in 1956, VP Bank has established itself as a partner for high-net-worth individuals (HNWIS) and financial intermediaries. The banking group continues to be headquartered in Liechtenstein today, but has also boasted a key presence in Asia for over 20 years, attesting to its strong commitment to the region. Coupled with expertise in its core businesses and markets with a long-standing legacy of trust and security, VP Bank is well positioned to address the changing demands of Asia’s private banking space and evolving client needs in the years ahead.
AN ESTABLISHED LEGACY
VP Bank’s sound balance sheet and strong capital base are the foundation of its operations, as
confirmed by its Standard & Poor’s “A” credit rating and listing on Zurich’s SIX Swiss Exchange. Although its shares are publicly traded, a majority of VP Bank’s share capital is held by three anchor shareholders, guaranteeing the group’s continuity and independence while also allowing it to take a longer term approach.
Fundamentals and ownership structure aside, VP Bank stands out for having over 50 per cent of its business in financial intermediaries. This is a key differentiator in the industry—it is rare for banks to have such a large proportion of their business in the intermediaries space—placing VP Bank in a strong position to serve and expand on its network of trustees, external asset managers and family offices in Asia.
BUILDING A MULTIGENERATIONAL LEGACY
For HNWIS, succession planning and intergenerational wealth transfers remain top priorities today. A family office structure can centralise these functions for both efficiency and effectiveness. VP Bank’s senior wealth planning specialist Esther Fung says, however, that the structure afforded by a family office can accomplish much more. By operating as a governance-led platform, for instance, a family office can develop a decisionmaking framework to evaluate and execute complex asset management strategies involving multiple investment vehicles across different markets. In the same vein, a family’s investment and philanthropic objectives can also be aligned more easily with a suitable governance framework, while addressing issues such as sustainable investments. Fung also says that the number of family offices has increased significantly since 2017, and VP Bank’s unique focus on intermediaries and core governance will be able to guide HNWIS in building their multigenerational legacy.
ECONOMIES OF SCALE
Setting up and running a family office involves a myriad of considerations though, including its objectives and structure. According to Fung, VP Bank’s deep experience in the intermediaries space— including its work with family offices—has allowed it to develop the know-how and infrastructure to support these financial institutions. From the products and services offered by the banking group to its operational processes and advisory expertise, and even its network of partners such as tax and legal advisors, VP Bank is ideally placed to support its clients in the intermediaries segment, whether they are an established firm or a nascent family office. In turn, these intermediaries are then able to fully concentrate on their end clients.
For HNWIS, succession planning and intergenerational wealth transfers remain top priorities—a family office structure can centralise these for efficiency and effectiveness