ARMED WITH ONLY 13 retail branches, Bank of America (Asia) - the local subsidiary of the United States banking giant - competes against goliaths such as HSBC and Hang Seng Bank in a crowded banking sector.
President and chief executive Samuel Tsien is steering the second-tier bank through a period of low commercial credit demand and high personal bankruptcies. Smaller lenders often lose out because they lack the greater economies of scale that enable their larger rivals to cut costs.
The Informer caught up with Mr Tsien to see how the bank is faring and where it is setting its sights for the future.
Q: Is the Bank of America (Asia) a small bank? A: I would say Bank of America is doing local business, but it is important to recognise that because we are part of a global institution, we are able to do things a pure local bank cannot do.
Q: How do you view the sector in Hong Kong? A: We are looking at a market which is structurally changing and you don't find that happening as much in other markets. Hong Kong needs to integrate with the mainland more. That's going to bring us new opportunities, but it's something that needs to happen.
On the immediate side, there is going to be lower demand for traditional products. For example, we have a reduced demand for loans because previously manufacturers needed to borrow here before they could inject money into the mainland.
I think banks should understand that the traditional commodity type of banking business can no longer be counted upon for future growth. They have to look into moving into new areas such as wealth management and expanding into the mainland.