HK 'pivotal' as gateway to North Asia, mainland

As Hong Kong maintains its position as the world's third-largest financial center this year, the city has become more pivotal to DBS' broader Asian growth strategy, alongside its Singapore headquarters, said Sebastian Paredes, head of North Asia at DBS and chief executive of DBS Bank (Hong Kong).

Paredes called it the Dual-Hub Business Model. In an exclusive interview with The Standard, he highlighted that the city serves as the bank's critical gateway to North Asia and mainland China, complementing Singapore's focus on Asean and India. 

Through a dual-hub model with twin booking centers, DBS offers ultra-high-net-worth and high-net-worth clients flexibility across two leading financial jurisdictions, he said. Hong Kong's status as the world's third-largest financial center enables DBS to capitalize on Chinese initial public offerings, North Asian wealth creation, and the international expansion needs of Hong Kong and Chinese corporations.

DBS actively transfers capabilities from Singapore to Hong Kong, Paredes noted. Rather than competing directly with Singapore, which ranks as the fourth international financial hub, he said Hong Kong can leverage Singapore's experience in digital assets and innovation while playing to Hong Kong's strengths in equity capital markets and China connectivity.

"We want to take those learnings into Hong Kong, and the evolution of the equity capital markets, especially supporting the new high-tech industries in China," he said.

Paredes said that Hong Kong presents a unique market dynamic with its own distinct client needs, business environment, and regulatory landscape. He also noted their strategic bet is to build a well-balanced and diversified business model – with approximately one-third of its portfolio each in wealth, small and medium enterprises, and large corporate segments.

While traditional wealth managers may specialize in HNW services, they often lack the integrated corporate banking capabilities that are crucial for entrepreneurial clients. At DBS, Paredes highlighted that around 70 percent of its HNW clients are entrepreneurs and business owners. The bank has also made a strategic decision not to participate in the mass retail banking sector and to focus all its efforts, products, services, and network on wealth management.

"We are one of the few global banks with double A-minus rating, which clearly demonstrates our 17 years of being named as one of the safest banks in Asia. It is something that is differentiating with other players in the wealth management [sector]," he said.

"We see wealth management as a continuum," Paredes said. From an initial HK$1 million minimum balance, clients can progress smoothly through the bank's Treasures Private Client tier and eventually into full private banking – all with consistent service standards and digital capabilities.

Fifteen years ago, Paredes said DBS made several bold strategic decisions: turning its cash management from a weakness into a strength, prioritizing wealth management, and initially riding the wave of Chinese enterprises expanding globally. Over time, the bank shifted its emphasis toward building a strong SME franchise, now ranking among the top four in Hong Kong.

Paredes noted that the SME sector has the highest level of employment and support to the real economy, and that the bank has made account opening more agile and supportive for smaller businesses.

This evolution, combined with prudent risk management – especially in real estate – has kept non-performing loans low and strengthened the deposit franchise, helping to drive strong results, with DBS Bank (Hong Kong) reaching a net profit of HK$9.6 billion for the full year 2025 and still going robust.

Meanwhile, geopolitical risks and macro trends remain high on the radar. Paredes said the bank closely monitors heightened geopolitical tensions, technology bifurcation or divergence between East and West, supply chain diversification, and disruptions from events in the Middle East affecting maritime transport, commodities, and consumption. 

These factors influence client businesses globally, making proactive awareness and management critical in day-to-day operations. That said, Paredes noted that Hong Kong's integration into the DBS' "Best Bank for a Better World" mission has helped the franchise plan long-term goals that will not be hindered by short-term conflicts.

A few years back, the bank created a never-ending purpose through the mission – encompassing ESG integration, sustainability-linked loans, strong diversity, and community impact through the DBS Foundation. Paredes said the mission lies in the group's uniqueness: setting goals that align with customers' needs and envisioning.

"I sometimes compare our journey to golf. When you play golf, you compete with yourself to improve all the time," he said. "That eagerness to improve the customer journey is innate in our nature now.”

Pioneering innovation with customer, employee elevation

As a pioneer of digital transformation, DBS' digital capabilities and its ability to connect with customers digitally have been a substantial differentiator from the rest of its competitors, said Sebastian Paredes.

Its One Bank approach – the unique strategic bet that seamlessly integrates a comprehensive suite of banking services from corporate to private banking – sets it apart from top-tier wealth management players and agile virtual banks in Hong Kong, Paredes noted.

This integrated strategy is further strengthened by DBS' vision of being an "AI-enabled bank with a heart," blending advanced technology with human expertise to deliver trusted and personalized solutions across Asia.

Virtual banks that offer digital agility lack the breadth and depth of services DBS provides, particularly in sophisticated wealth management and corporate banking, Paredes said. He further noted that DBS' digital engagement eliminates the pain points in transactions, local and international payments, and the ability to self-manage bank accounts.

He said artificial intelligence and Generative AI now enhance this further – powering chatbots such as DBS Joy Chatbot 2.0, internal tools like DBS-GPT, and development assistants – while digital sales account for around 80 percent of total sales. These efficiencies lower cost-to-income ratios and reinvest in customer-centric innovations, capturing more wallet share.

Paredes highlighted that the bank's digital adaptation has also shaped its talent management distinctively, as it boasts one of the lowest turnover rates and highest engagement scores industry-wide, and is named an employer of choice across sectors.

Based on its "no layoffs due to AI or technological change" philosophy, DBS invests heavily in upskilling and reskilling through a comprehensive framework to prepare employees as AI "co-pilots," Paredes noted. The bank continues to grow headcount alongside franchise expansion, fostering psychological safety and long-term career development.

Paredes emphasized that alongside investing significant resources, time, and effort to understand and act on future developments, it is crucial to be prudent, anticipate market changes, and respect employees.

Strengthening HK's vibrancy 'a social responsibility'

After living in nine countries over 35 years, the Ecuadorian-Spanish banker and avid football fan has chosen Hong Kong as home for the past 15 years, channeling a deep affection for the city into both his leadership and community involvement.

Beyond banking, Sebastian Paredes is helping strengthen Hong Kong's vibrancy as Asia's entertainment and tourism hub. DBS is a sponsor of the upcoming Hong Kong Football Festival at Kai Tak Stadium this August, with Paredes personally appearing in the promotional campaign alongside Hong Kong footballer Matthew Orr Wing-kai. The game brings together four of Europe's most decorated clubs: Manchester City, FC Internazionale Milano, Chelsea FC and Juventus. While the recent World Cup has amplified football fever – with Paredes having cheered for Spain as they fought for the championship – he emphasizes that the bank's support for the event stems from a commitment.

Paredes said that as a businessman operating in Hong Kong, he sees making the city more attractive as a social responsibility. "We love Hong Kong. We want to make it a better place. We want to support every endeavor to make Hong Kong one of the most exciting places within Asia," he said.

Paredes' personal connection runs deep. Born in Ecuador with Spanish heritage, he fully embraces Hong Kong's culture – from its world-renowned culinary scene to its dynamic energy. "I have great friends and strong connections here, and I'm part of Hong Kong society now," he said.

This sense of belonging is reflected in DBS' community efforts. Under Paredes' leadership, the bank has made meaningful investments through the DBS Foundation, focusing on support for an aging society, family financial education, and helping vulnerable communities, such as a HK$10 million donation following the Tai Po fire tragedy and a collaboration with Tung Wah Group of Hospitals to create the 5,000-square-foot Yau Ma Tei Community Living Room for families living in subdivided units.

In 2025, DBS Hong Kong invested HK$51.9 million in corporate social responsibility initiatives, with employees contributing more than 54,000 volunteer hours and positively impacting over 111,000 lives.

For Paredes, business success and giving back are inseparable – a reflection of both his international outlook and his genuine attachment to Hong Kong.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓