Friday 29 Mar 2024
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THERE is change in the air at Citibank Malaysia. This can be attributed to Lee Lung Nien, who recently took the helm as CEO. In the first of a three-part series, he outlines his strategies for the bank as well as his perspective on investing.

The energy level at Citibank Bhd is palpably higher these days. Some Citibankers say they feel that the work pace has quickened and there is a sense of urgency in getting things done.

This change can be attributed to its new CEO, Lee Lung Nien, who took the helm last October. A self-confessed “highly energetic person with a can-do attitude”, Lee is often heard telling Citibankers “Let’s go” and “Tomorrow is too late”.

Candid, amiable and down to earth, Lee is not one to perch atop his ivory tower. “Call me Lung,” he says as Personal Wealth meets up with him for an hour-long interview, his first with the local media.

Since taking over the top job, Lee has wasted no time in getting to know the ins and outs of the bank. Making himself approachable to staff at all levels, he walks the floors to see what is going on.

“Many employees initially wondered about the guy in the suit walking on the technology floor,” he says. “It is good to get feedback on everything. Information from the staff to senior management usually gets filtered by middle management. By walking the floors and talking to employees, I will know what the issues are. So I try to get feedback and do what’s right for the people.”

Lee’s appointment comes at a time when the banking industry is facing challenges — intensifying competition among banks, a slowing economy and an erosion in margins. Indeed, some industry observers say foreign banks such as Citibank are losing market share to the big local banks, even in areas where they used to have the edge, for example, in the wealth management space.

Lee intends to change all that. “We are well aware of the growing competition and are looking at where we can be stronger and better as one of the best banks in the country.”

To energise the bank, he is focusing on four key areas — people, clients, controls and relationships. For instance, he wants Citibank to be a market leader in client management.

Communication is essential in good times and bad, Lee opines, but especially so during times of market uncertainty and volatility. “If the client has significant investments and we are in a difficult market, the worst thing to do is not pick up the phone.”

Despite the weak market sentiment at the moment, Lee remains optimistic in his capacity as a banker and an investor. His glass is neither empty nor full, rather “it is overflowing”.

He reckons that the time is ripe for picking investment opportunities if you are an informed investor, as high volatility equates to higher yields. “I am a little concerned, especially for people who have over-leveraged themselves. One day when the rates rise, they will be caught.

“Having said that, there will be opportunities for people to invest in yield-enhanced investments or market-linked investment and equities or equity funds. Always look for the silver lining.”

In the current tough climate, Lee recommends fixed income as an asset class for conservative investors. “A lot will depend on one’s risk appetite as well as level of education and understanding of the markets. Whatever it may be, it needs to be informed decisions.”

While Lee stands ready to grab any opportunity that may arise, compliance and controls are still important factors. He explains, “If you want to go fast, you must know how to stop. For example, I am into motorsport. I love racing go-karts and cars. Most of us want to go fast.

“But if you don’t have the proper brakes to match your speed, you are going to crash. This is the same for banking and other organisations too.”

Controls are especially important in the wealth management industry, which has drawn some criticism in recent times owing to irresponsible product selling. According to Lee, several key practices must be implemented — relationship managers must be well trained, prudent and responsible; there must be checks and balances in place to avoid product mis-selling; and new products have to go through a rigorous approval process internally before they can be rolled out. 

Relationship managers must also ensure that the recommended products fit the risk profile of the client, as wealth management is about how well the client’s needs are understood and met.

“The key to wealth management is also how well you listen to your clients to understand their needs. It is not just about finding the solution to plug a problem. It’s about sitting down and understanding the client’s risk profile. The consultative dialogue is key, not the product sale,” Lee says.

His advice to investors is to know where their portfolio stands and know when to get out. Investors who are underweight in certain investments should look for opportunities to get in, but they also need to think about cutting losses when they are overweight in some areas.

“Wealth management is about long-term planning. Have a diversified portfolio. Make an informed decision.

“One thing many investors do not have is patience. It is important. If you are currently invested in a portfolio that is not performing — with informed decisions, market views and consultations with your RM, do explore new investment opportunities that could provide you with potential returns,” he says.

A veteran banker, Lee has been with Citibank his whole career. He had begun as a credit analyst at Citibank London in 1990 before being transferred to Singapore to head the sales team for the markets division. Later, he moved to New York to take up the position of assistant vice-president of FX investor sales.

He was appointed head of treasury at Citibank Malaysia in 2001. Three years later, he returned to Singapore, appointed first as head of corporate sales and structuring and then, co-head of corporate sales and structuring for Asia. 

In 2010, Lee was appointed chief operating officer of Citibank Singapore. He was Citibank’s regional anti-money laundering business head (based in Malaysia) before taking up his current position.
 

 

This article first appeared in personalwealth, a section of The Edge Malaysia, on January 26 - February 1, 2015.

 

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