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Written By : Association of Independent Wealth Managers (AIWM) Dec 12th, 2023 One of the questions we often get as an impact investor is “How do you define impact?” We have a simple answer, a name. Impact means real people with names experiencing “my life will never be the same” moments. It is about people’s lives being transformed. As social impact venture capitalists, we believe you can make significant investment returns while driving high social impact. We do this by investing in early-stage B2B for-profit companies that are solving the world’s biggest problems. We believe the highest calling of business is to participate in solving the toughest challenges society faces. Here are 4 examples of businesses catalyzing transformed lives: Freeing a Person from Slavery According to the Mekong Club, 25,000 people are trafficked day, while only 136 of them are helped by all non-profits and government efforts combined. Almost half of the current 50 million slaves in the world are trafficked for their labor.  The gut-wrenching part is that many of those people work on products sold to developed countries like the USA, Germany, Switzerland, and yes, Singapore. We have invested in FRDM, a software company that helps companies analyze supply chains to identify trafficking and other human rights violations. As FRDM scales, our hope is to radically drive down demand for goods produced with slave labor, destroy the economics of labor trafficking, and free millions of slaves. Elevating a Person from a Minimum Wage to a Profitable Profession Many communities have very little access to career-making training opportunities like a software coder’s boot camp that can cost thousands of dollars while training over a period of up to 6 months with no income. We invested in VeroSkills, a software development training company, where we flipped the script, asking large Silicon-Valley tech companies who need tech talent to pay the majority of the training fee to feed their recruiting pipeline while partnering with leading non-profits to provide low-cost virtual boot camps with live tutors for these underserved communities. Mentoring Disadvantaged Youth from Elementary School into a Thriving Career Mentorship has consistently proven to be one of the most effective ways to help underserved youth, but the one-on-one mentoring commitment is often challenging for many adults. We invested in UpFrom, a company that makes mentorship into a team sport by surrounding a youth with a team of four families and monetizes with a “Go Fund Me-like marketplace” that facilitates mini-campaigns for child needs like tutoring or guitar lessons. Providing Access to Healthcare for Low-Income Communities Malaria kills 619,000 people each year, yet common practice is either daily use of DEET – a long-lasting neurotoxin – or using nets which are impractical except for during sleep. We invested in LivFul, a company that has developed a 100% natural bug repellent that is safer and more effective than DEET, designed and priced for communities where people make $3 to $10 per day. We measure impact through (1) lives saved, (2) jobs created in disadvantaged communities, and (3) life-days of health without malaria (in many communities the workforce is significantly affected by absenteeism from malaria). We believe the purpose of investing is to transform lives.  We do this through building and investing in scalable companies solving the most challenging problems on the planet.  Profit is also good.  It is natural for these companies to make a significant profit because their profit is the fruit of positively transforming many lives. Our dream is to transform 1 million lives through for-profit investments.  We’re incredibly thankful for our track record. Dr. Carl Thong is a partner in Eagle Venture Fund (www.eagleventurefund.com). He can be contacted at carl.thong@momenta.biz

Expert Insights: Prospecting Strategies For Private Bankers & Wealth Managers

Leadership Insights

From this CARVE perspective, responsibility is for activity (action and outputs/deliverables) and accountability is for results (efficiency, quality, effectiveness, value delivered).

Core Learning Principles  The Core Learning Principles, which are the foundation of the proposed curriculum design, are informed by several key theories and research findings in the field of education and cognitive science. Three of these principles are described below. Deliberate Practice Deliberate practice is a key principle in skill acquisition and competency development. It involves focused, goal-oriented practice with immediate feedback and opportunities for repetition and refinement. This principle aligns with the progression from ‘conscious incompetence’ to ‘conscious competence’ in levels of human competence model, where learners need to practice their skills consciously and deliberately to improve. In the Dreyfus model, deliberate practice is crucial in the early stages of learning, where learners need to practice following rules and guidelines until they become automatic. In the context of our curriculum, deliberate practice is integrated into each stage and level, with learning activities designed to provide learners with clear goals, immediate feedback, and opportunities for repetition and refinement. This principle is based on the work of Ericsson et al. (1993) who found that the key to achieving expertise in any field is not just a matter of time spent, but the quality of practice. Deliberate practice involves focused, goal-oriented training activities designed to improve specific aspects of performance. It requires immediate feedback, repetition, and gradual increases in complexity. A study by Taras et al. (2023) demonstrated the effectiveness of Rapid Cycle Deliberate Practice (RCDP) in medical education, where learners achieved mastery of skills through repetition, feedback, and increasing difficulty. Reflective Practice Reflective practice involves thinking about one’s own learning and performance, identifying areas for improvement, and making adjustments as necessary. This principle is key to developing ‘conscious competence’ in levels of human competence model, where learners need to reflect on their performance to identify their areas of incompetence and work on them. In the Dreyfus model, reflective practice is particularly important in the ‘proficient’ and ‘expert’ stages, where learners need to reflect on their performance to make intuitive judgments and decisions. In our curriculum, reflective practice is encouraged at all stages and levels, with learners encouraged to reflect on their learning and performance, identify areas for improvement, and make adjustments as necessary. Reflective practice, as proposed by Schön (1983), involves thinking critically about one’s actions during and after the event to gain insights and improve future performance. This principle is crucial in helping learners understand their thought processes, identify areas of improvement, and apply learned concepts in different contexts. Augmenting and Scaffolding Augmenting and scaffolding involve providing learners with the right level of support and challenge at each stage of their learning journey. This principle aligns with the progression through the stages in both the Dreyfus model and levels of human competence model, where learners need more guidance and support in the early stages and more autonomy and challenge in the later stages. In the proposed curriculum, augmenting and scaffolding are integrated into each stage and level, with learning activities and support mechanisms designed to provide the right level of challenge and support for each learner. Augmenting: This principle is based on the idea of augmenting or enhancing the learning process with additional resources or tools. This could involve the use of technology, visual aids, or other resources that support and enhance understanding and retention of information. Scaffolding: This principle is rooted in Vygotsky’s (1978) theory of learning and the idea of the Zone of Proximal Development (ZPD), which involves providing support to learners as they develop new skills or knowledge. Over time, this support is gradually removed as learners become more competent, allowing them to become independent problem solvers. These principles are not standalone. They interact and reinforce each other to create a rich, supportive, and effective learning environment. For instance, deliberate practice often involves scaffolding, where learners are initially provided with support and feedback, which is gradually reduced as they gain competence. Similarly, reflective practice can enhance deliberate practice by helping learners identify specific areas they need to focus on during their practice sessions. Augmenting can support all these processes by providing resources and tools that enhance understanding and facilitate both practice and reflection. These core learning principles guide the design of the curriculum, ensuring that learners are actively engaged in their learning journey and are given the support they need to progress. They also align with the principles of skill acquisition and levels of human competence, providing a robust framework for learning and development. Curriculum Touch-Points People People are a crucial touch-point in the learning journey. They can provide guidance, feedback, and support, and they can also serve as role models, demonstrating the skills and behaviors that learners are striving to develop. Subject Matter Experts: These individuals have deep knowledge and expertise in a particular area. They can provide detailed explanations and insights, helping learners understand complex concepts and procedures. This aligns with the early stages of the Dreyfus model and levels of competence model, where learners need clear instructions and explanations. Subject matter experts can also help learners develop accurate and comprehensive mental models in their area of expertise. Specific Skill Experts: These individuals have mastered a specific skill. They can demonstrate the skill, provide tips and techniques, and give feedback on learners’ performance. This aligns with the ‘conscious competence’ stage in levels of competence model, where learners need to practice a skill deliberately and get feedback to improve. These experts can help learners refine their mental models of how to perform the skill effectively. Practitioner Experts: These individuals have extensive experience applying their skills and knowledge in real-world contexts. They can share their experiences, discuss case studies, and help learners understand the nuances and complexities of real-world practice. This aligns with the ‘proficient’ and ‘expert’ stages in the Dreyfus model, where learners need to develop a deep, intuitive understanding of real-world contexts. These experts can help learners develop and refine their mental models based on real-world experiences and challenges. Channel Touch-Points Channel touch-points refer to the different modes or platforms through which learning can occur. Each channel has its… Read More Here!

Relationship managers need to master digital skills, become intimate with their clients’ values, and better tailor their bank’s investment views if they are to reach their potential in 2023. That is according to Carl Thong, group managing director at Singapore-based momenta Group, a regional training platform for private bankers. In our second article featuring Thong, who has worked with private banks in the region including UBS, BNP Paribas Wealth Management and Julius Baer, Asian Private Banker examines some essential traits for working in the modern-day industry. Deeper Client Conversations Effective private bankers need to be able to take their bank’s investment views and product expertise and shape these into the context of their client’s specific requirements, believes Thong. This involves having strategic conversations with clients that “go four or five layers deeper” than simply repeating the bank’s house view. “Before you talk about specific investments or trades or house views, what is the overarching investment strategy that your client would like to pursue?” Thong asked.For example, a client’s investments with a particular bank could be so-called “sleep-well” money, or it could be purely for speculative trades. Also, bankers must ascertain how their client’s day job, more specifically, the client’s “active income” weighs in on their investment strategy. To put this in perspective, would a bank’s overweight call on Apple shares mean less if your client is a Taiwanese semiconductor billionaire – meaning they are already heavily exposed to such an investment?“99% of the time the client will tell their banker what they want. But you need to coach them on what they need. What the client wants and what they need might be different,” explained Thong. Mastery of Digital Skills While travel restrictions imposed during COVID-19 have largely disappeared, it remains essential that a private banker has a variety of digital tools in their arsenal. “The mastery of digital skills is a necessity for a high-performance private banker in today’s age. We have no more excuses. Even my mom, who’s close to 80, uses Zoom now,” explained Thong.(Call Out Statement: “People say investment is all about numbers. That’s exactly the wrong statement. Your money is extremely emotional. And emotions are driven by our values.“)The majority of private bankers in Asia Pacific will no doubt be familiar with videoconferencing technology, but whether they are adept enough to use these tools to prospect, convert and farm clients effectively is another question. “The ability to meet somebody has been greatly changed,” he said. Private bankers must ask themselves: “How do I acquire, how do I advise, and how do I add value for clients digitally?” One part of that is how bankers use non-verbal communications when interacting with clients via digital platforms. “You have to be a little bit of a Netflix producer. You need to be able to at least demonstrate emotion, empathy and engagement,” Thong added. Manage Your Online Presence It is not all about Zoom, though. It is also essential in 2023 that private bankers manage their presence on social media, particularly professional platforms like LinkedIn. “Everyone has a digital presence,” Thong said. “The only question is, are you proactively managing that presence?” Thong highlighted examples of private bankers that have failed to upgrade their job titles after changing banks. “If you can’t even update your own LinkedIn, how does your client know that you’ll be diligently updating their portfolio in an appropriate way?” There have also been cases of bankers posting potentially embarrassing material online. “If you arrange a meeting with a prospect, the first thing they will do is Google you,” he continued. “There was a case where there was a photo of a private banker  drinking beer at a party. That perhaps should not be on your LinkedIn page when you’re trying to tell an HNW how to deploy $8 million.” What are your client’s core values? “A private banker is a very unique job, in that you are selling yourself first before you sell the bank and its products,” believes Thong. To that end, a high-performing private banker must prove that they genuinely understand what makes their clients tick: from their passions outside of the workplace, to ESG, to what is it they are trying to achieve with their wealth.“High-performance private bankers should understand what are the client’s core values,” Thong believes. “How can you engage with the client so you can understand and appreciate their values? If he grew up in a military home and he values punctuality and discipline, and you’re late to the meeting, and you’re not disciplined – you’ve lost a client.”Perhaps most pertinently, this can also be applied to ESG, which next-generation private bank clients are becoming increasingly passionate about. “People say investment is all about numbers. That’s exactly the wrong statement. Your money is extremely emotional. And emotions are driven by our values,” said Thong. By Danial Shane | June 22, 2023

Do you have what it takes to be a high-performing private banker? With rising competition, increasing client sophistication and volatile markets, capturing and maintaining profitable clients is arguably harder than ever for private bankers in Asia-Pacific in 2023. Against that backdrop, it is essential that the region’s private bankers are equipped with the strategic, technical, emotional and intellectual skills to ensure that they maximise their relationships with clients and successfully prospect and convert new ones. In an interview with Asian Private Banker, Carl Thong, Singapore-based group managing director for Momenta Group, one of the region’s biggest training companies for wealth managers, outlines what private bankers should be prioritising in terms of skills development. “A high-performing private banker is typically a trained private banker. The best doctors are trained doctors,” he believes. “They have some natural gifts but you need to have a certain type of training.” Synthesising skills For Thong, who has trained bankers at UBS, Credit Suisse and Julius Baer, while it is crucial to have qualifications in finance or investments, it is vital that RMs can synthesise such skills in a way that best serves clients’ requirements. “Just because you can pass an exam and you can answer the question ‘what is a mutual fund?’ – It doesn’t mean anything if you don’t know how to apply a mutual fund into the conversation of a client to see if it’s suitable or how it fits into an overall wealth strategy,” he believes. In Thong’s view, many private bankers in Asia have strong technical knowledge when it comes to capital markets and specific products, but require training to assimilate this into broader concepts of asset allocation, behavioural finance and portfolio management. Another important focus should be the management of the client themselves, such as having the emotional intelligence to navigate client objections and difficult questions. “It’s about what kind of questions need to be asked to a client to understand how a specific product fits into the client’s specific wealth journey,” he said, highlighting how product requirements vary significantly according to whether a client in is the wealth generation, wealth growth, wealth preservation or wealth transfer stage of their life. Farming versus hunting Another key to being a high-performing private banker is implementing an efficient system for client prospecting, Thong pointed out. “What you will find is that after six months in the job, all your friends have made all the introductions,” he explained. “You move within a certain finite group of friends – so now what? One of the functional skills a high-performance banker needs to know is how to systematically prospect, in addition to referrals.” In that regard, Thong believes that bankers need to have a strategic, systematic approach to meeting new potential clients and filtering out genuine prospects from what he described as “suspects” – those that may not be viable clients due to KYC, source-of-wealth, or other issues. When prospecting, bankers should determine how much net new assets they need from new clients in order to meet their overall targets when determining their lead generation strategy. “If you have a US$50m target, and US$30m is going to come from existing clients – that means US$20 million needs to come from new clients. So how many people do you need to meet in order to achieve that number? Prospecting and hunting requires a business plan.” Bankers need to also focus on a step-by-step approach to winning new clients, that takes into account lead generation, initial contact, winning trust, making a proposal, to KYC and funding. As part of Momenta’s training course, bankers get the opportunity to practise potential conversations with U/HNWIs in a no-risk environment. “Because when you meet a new prospect at the Shangri La or Mandarin Oriental in Central and you’re having tea with them – you’ve got one shot,” Thong explained. “After 45 minutes, that HNWI is going to make a simple decision on whether they really like you, if they want to meet you again, and what you can help them with.” Strategic engagements High-performing private bankers should also know how to have conversations with existing clients that can turn them towards more strategic investment decisions around their portfolios and asset allocation, rather than transactions, believes Thong. “A typical Asian client will ask – and it’s not the client’s fault – ‘is this product going to make money?’, ‘how much money is it going to make?’, ‘what’s the minimum amount of money it will make?’ and ’can you give me a discount?’. There’s absolutely nothing wrong with that, but a high-performing wealth advisor would be able to take those concepts two levels further,” he added.Instead, a private banker should focus on what the client’s broader investment objectives are – whether that is achieving passive income, or how a product fits into a wider strategy, or something else. “A strategic advisor really pulls back a bit on the product proposition and focuses on the richness of the dialogue,” he believes. “It’s a much richer, deeper conversation that requires maybe two or three more meetings. But here’s the opportunity – the outcome of those meetings generally becomes a much more holistic investment approach. Daniel Shane, 8 May, 2023