Why Relationships Still Matter in the Digital Age of Banking

In the rapidly evolving world of banking and trade finance, Habib Bank AG Zurich's Hong Kong CEO Sachil Dagur emphasizes the importance of relationships, judgment, and trusted connections over sheer scale. Dagur, who previously held senior roles at Axis Bank, has observed that clients value sound advice, relevant information, and immediate contact.

For him, technology and relationships complement each other, with technology enhancing the bank's ability to serve clients better. Approximately 40% of Habib Bank Zurich's clients have maintained relationships with the bank for over a decade, highlighting the value of long-term, trusting relationships. Building trust, according to Dagur, requires continuity, knowledge of clients' businesses, and the ability to provide valuable insights.

This is particularly crucial in trade finance, where clients may encounter unfamiliar markets, counterparties, or supply chains. While the bank has invested in digitising internal processes such as letters of credit and invoice discounting, the focus remains on ensuring complete digitalisation before moving towards more advanced technologies like blockchain.

Dagur believes that blockchain may eventually play a significant role but is not yet a priority. The bank's presence in 11 markets, including key countries for its clients, provides valuable local insight. This enables Habib Bank to offer tailored advice and help clients assess opportunities and risks more effectively. Dagur stresses that risk and compliance are integral parts of the bank's culture, not just the responsibility of a specialized department.

His leadership approach emphasizes building a diverse team, fostering open communication, and encouraging constructive discourse to make informed decisions. Ultimately, his philosophy revolves around creating a balanced environment that promotes growth while managing risk, compliance, and service quality.