Habib Bank AG Zurich CEO: Responsiveness and Relationships Define Banking's Future

According to the South China Morning Post, Sachil Dagur, the Hong Kong CEO of Habib Bank AG Zurich, maintains that the successful formula in banking is defined by responsiveness, judgment, and established relationships, rather than scale alone, as technology reshapes trade finance and global commerce grows more intricate.

Dagur, who assumed the role of CEO in Hong Kong in 2018, observed that Habib Bank Zurich possessed valuable existing strengths, including a specialization in trade finance, strong connections within the trading community, and a presence across markets significant to its clientele. He believed the opportunity lay in enhancing the effectiveness of these strengths to assist clients in better utilizing them.

With over two decades spent at Axis Bank, including senior positions in India, Singapore, and Hong Kong, Dagur developed a perspective on corporate banking across Asia. This experience led him to believe that despite shifts in technology and trade routes, clients continue to value receiving reliable advice, pertinent information, and having someone available to answer their calls. He stated that knowing one can reach out and receive an immediate response provides significant reassurance.

Dagur posits that the future of banking is not a dichotomy between technology and relationships, but rather the utilization of one to reinforce the other. He notes that personal accessibility remains a competitive advantage, as customers value having clear points of contact, and this relationship-focused methodology is what fosters loyalty. He pointed out that approximately 40 percent of Habib Bank Zurich’s clients have maintained their business with the bank for over ten years.

Trust, however, Dagur contends, is not established through goodwill alone; it necessitates continuity, knowledge, and consistent delivery. He highlighted that the continuity of personnel is the most crucial element, advising that clients should not be required to repeatedly explain their business to different relationship managers. Furthermore, staff members must possess an understanding of both banking products and the various markets and industries in which their clients operate. Dagur remarked that individuals appreciate interacting with people who offer supplementary knowledge.

This specialized knowledge is particularly vital in trade finance, especially when clients are exploring unfamiliar supply chains, counterparties, or destinations. Habib Bank AG Zurich's presence in 11 markets, which includes Bangladesh, Turkey, Pakistan, South Africa, and Kenya, affords the bank local insights that can aid clients in evaluating potential risks and opportunities.

Regarding technology, Dagur adopts a pragmatic stance, acknowledging that no bank can disregard digital transformation, but not every institution needs to be the first to implement every innovation. He advised that if one is being pursued, one should at least remain near the forefront of the movement. For Habib Bank Zurich, this has involved digitizing internal procedures such as invoice discounting and letters of credit, while also monitoring blockchain-based trade finance. Dagur believes blockchain may gain importance, but current adoption remains limited, and the immediate focus is on ensuring internal processes are fully digitized before proceeding further. The bank is currently observing the blockchain space and intends to be prepared when the market is ready.

As supply chains evolve and companies reassess trade routes, banks cannot dictate geopolitical events, but they can assist clients in anticipating changes and responding more intelligently. Dagur suggests that knowledge will serve as a key differentiator. Habib Bank AG Zurich's representative offices in China, Turkey, and Bangladesh, combined with its presence in other nations, assists the bank in developing a deeper market comprehension and sharing relevant intelligence with its clients. This capability can be beneficial for Chinese firms looking into overseas markets and for trading businesses seeking new locations.

The responsibility of banks has expanded beyond merely providing financing; they must now help clients determine where to trade, with whom to collaborate, and how to adapt when circumstances change. Risk management is central to this expanded role. Dagur has increased the emphasis on larger, highly rated corporate clients, consistent staff training, and sustained attention to compliance. He believes that risk and compliance must integrate into the institution’s culture, stating that if risk and compliance become a culture, it ceases to be an issue.

Dagur’s perspective was partly influenced by his early experiences in a military school, where the motto was to adhere to the rules of the game. In banking, this translates to compliance being non-negotiable, requiring adherence to rules governing financial crime controls, liquidity, and anti-money laundering, and ensuring employees comprehend the significance of these rules.

While technology will continue to reshape the sector, Dagur expressed caution against overstating every emerging trend. His leadership philosophy centers on transitioning from individual performance to collective performance. A significant leadership challenge, he noted, is effectively transferring individual success to a team. This involves constructing teams with diverse skills and viewpoints and aligning them around a shared objective. Dagur does not expect uniformity in thought or work style. He advised that one must create a symphony from various tones and instruments, and he encouraged healthy friction, stating that without it, there are no brakes.

Consequently, a leader's function is to manage this friction while ensuring the organization maintains the appropriate balance between service, growth, risk, and compliance. Dagur's approach has been informed by observing both positive and negative leadership examples, citing his father's integrity and Dr. P. J. Nayak, a former leader at Axis Bank, whose energy and team mobilization skills made a strong impression. From these observations, Dagur developed a preference for enabling staff rather than micromanaging them, stating that he creates opportunities for them instead of micromanaging. He desires colleagues who are innovative, hardworking, capable, and willing to learn. His counsel to leaders includes understanding market rules, acting transparently, and building robust teams, while seeking opportunities during challenging times. During the pandemic, Habib Bank Zurich utilized the period to enhance its internal processes, and Dagur advises viewing every challenge as an opportunity.

Looking forward, Dagur aims for Habib Bank Zurich to be recognized as an elite boutique trade finance bank that provides a comprehensive range of banking solutions and personalized service, rather than offering generic products. He also hopes the bank will become