'Listen to your customers' voice'

Shinhan BNP Paribas chief envisions ‘Manchester United’

By Kim Rahn

An asset management firm should read the mind of its customers and sales agents in order to provide comprehensive financial solutions to customers, said Cho Yong-byoung, CEO of Shinhan BNP Paribas Asset Management.

Since taking office in January, Cho has visited banks, securities companies and insurers where the company’s fund products are sold to learn the preferences of customers and sales agents.

He said many asset management firms think that selling fund products is the role of sales agencies such as banks, and that asset management firms need to only focus on investment strategy without trying to understand customer needs.

“In our case, we could sell products relatively easily through Shinhan’s banking and securities affiliates. But the financial environment and rules have changed, and we cannot rely on the affiliates as much as before,” Cho said in an interview at his office in central Seoul, Tuesday.

“Now, we have to sell our products through other banks and securities firms. To do so, we have to know what complaints customers and sales agents have, and what preferences customers have in selecting funds. That’s why I tried to listen to their opinions firsthand,” he said.

Cho learned what customers want from their fund investment is high returns, which depend on when they buy and sell the funds.

“We need to sell funds according to customers’ investment inclinations and the return rate they hope to get. Tailored customer management is important and should be done not only by sales agencies but also by us, the asset management firm,” said the CEO.

To achieve this goal, the salespeople of an asset management company should have as much expertise as the fund managers, so that they can understand customers’ opinions fully and provide tailored advice, Cho said.

“Fund product developers also need to go beyond just copying other products popular in the market. They need to have the capability to connect capital flow in the market with the customers’ needs,” he said.

“Thus, an asset management firm should become a ‘professional service firm’ that can offer total financial solutions,” Cho said.

In this regard, Shinhan BNP Paribas has an advantage as a joint venture between Shinhan Financial Group and BNP Paribas Group based in France. The two groups have been in alliance for more than 10 years since 2002.

“Domestically, we have Shinhan, a strong sales channel, as the background, and internationally, we have BNP Paribas, one of Europe’s best-performing financial groups,” the CEO said.

“The latter’s global network and capability will help us advance into the global market by selling Korean funds to overseas investors and introducing foreign funds to Korean investors. Through cooperation with BNP Paribas, we will also be able to develop the capability to read the global financial market,” he said.

Cho’s goal is to make Shinhan BNP Paribas the “Manchester United of the asset management industry.”

“Manchester United consists of the world’s best professional footballers regardless of their nationalities. I’d like to make Shinhan BNP Paribas a professional service firm which financial experts from all around the world want to join,” he said.

Cho started working at Shinhan Bank in 1984. He held various posts there, such as head of branches in Seoul and New York, executive director for global projects and management support, and vice president for the retail and sales department. He was named to the asset management affiliate’s chief position in January.

Shinhan BNP Paribas is one of the nation’s top asset management companies, managing funds valued at 36 trillion won as of May. The joint venture has been recognized by both the international and domestic investment industries.

It was named “Best Institutional House in Korea” in the Best of the Best Awards given by Hong Kong-based financial magazine Asia Asset Management for four straight years since 2009. Similarly, it was selected as “Asset Management Company of the Year” for Korea at the Triple A Investment Awards of financial magazine The Asset for four years in a row since 2009.

The company’s domestic reputation is also high. This year, the company won the top prize in the private equity fund category awarded by KG Zeroin, a fund evaluation institution. It also received an award from the Ministry of Health and Welfare for its sound management of the National Pension Service’s assets through stock investment.