Alex Chin is a Chartered Financial Analyst (CFA) who holds a Master Degree in finance from the Royal Melbourne Institute of Tech (RMIT). He is a visionary leader who has accumulated over two decades of experience in the financial space. In Generali Malaysia, he is currently responsible for managing the investment portfolios and strategies of the Malaysian entities. Prior to this, he was an audit professional, covering a range of business function audits pertaining to insurance operations and assets management in Singapore, Malaysia, Indonesia, and China. Alex is a Chartered Financial Analyst (CFA) and holds a Master Degree in finance from the Royal Melbourne Institute of Tech (RMIT).
In an exclusive interview with Financial Services Review APAC, Alex Chin has shared his invaluable insights concerning the future of the industry, the ensuing challenges and the possible solutions.
Could you share your experience in this industry, and the current role that you have in your organization today?
In the early 2000s, I embarked on my career as a regulator at Bank Negara, where my role involved overseeing industry operations and ensuring compliance with regulatory standards. After 7 years, I transitioned to audit industry where I conducted audits in various business functions, particularly in asset management and insurance operations. Subsequently, I made another career shift and assumed the position of Head of Investment at a prominent insurance company in Malaysia. Following this role, I joined AXA Affin in 2019, where I held the same designation. My responsibilities involved managing investment portfolio and devise strategies for Malaysian entities.
My areas of expertise centers on asset strategy, asset allocation, asset liability management, portfolio construction, performance attribution, and investment risk management, all within the domain of financial services. Throughout the last 20 years, my career has undergone growth and diversification, embracing these key fundamentals.
What according to you are some of the challenges that are plaguing the industry today?
Finance industry is susceptible to global economic and policy shifts. Factors such as trade tensions, inflations, interest rate fluctuations, and geopolitical events consistently exert a substantial impact on investment decision. Moreover, the increasing demand for sustainability has amplified the impact of ESG “Economic, Social, Governance” criteria within the industry. This criterion is used to assess a company’s impact on society and environment and can significantly influence the development of financial product.
Furthermore, the adoption of new accounting standards namely “IFRS 9” and “IFRS 17” has profound implications on “P&L” profit and loss reporting. The aim of these accounting standards is to improve the accuracy of financial statements. However, it has been a challenge for financial institutions to comply with these standards.
What are some of the technologies that have influenced your day to day activities?
Following the successful integration of AXA Affin joint ventures in Malaysia and MPI Generali Insurance Berhad, we initiated Asset Liability Management (ALM project). The objective of this project aims to optimize returns while taking into account various factors such as internal requirements, liquidity constraints and obligation to meet liability cash flow. This project involves a comprehensive optimization approach that combined a tactical asset allocation tool with an investment platform known as ALM Platform for Investment (API).
“Learning is an essential keystone for every leader, and it is highly advisable to stay abreast of industry trends, financial instruments, and regulatory changes through certifications and workshops.”
These advanced technological tools are instrumental in achieving the best possible outcomes across a range of economic scenarios. They enable us to assess how changes in economic conditions impact the company's solvency and its profit and loss. This task has become more feasible with the evolution of technology, enabling the analysis of complex big data, a task that would have been challenging in the past.
Are there any technologies that have potential to disrupt the market and you are considering implementing in your business?
The introduction of 5G or the fifth-generation wireless technology marks the potential of significant advancements in the financial sector. It is anticipated to deliver faster and more reliable connectivity, empowering users to enhance their efficiency in tasks such as mobile banking and real time trading. Financial institutions can harness the potential of the 5G network to monitor and manage assets in real-time by leveraging IoT devices and sensors.
“Blockchain,” a ledger system, is a network of computers that work together to share database and record transactions. This operates 24/7 and requires no intermediary, allowing the ledger to make near-instant settlement of transactions and play a pivotal role in bringing efficiency to cross-border payments. Moreover, Blockchain’s decentralized nature can assist to reduce the risks of manipulation and frauds in payments.
Additionally, Artificial intelligence (AI) and Machine Learning (ML) have the potential to enhance operational efficiency within the industry. Looking ahead, they have the possibility of evolving to the point where they can autonomously construct investment portfolios. Furthermore, in time to come I strongly believe AI is able to enhance the effectiveness in predicting weather patterns, in turn stabilizing food and commodity prices, and mitigating the price volatility within financial markets.
What is the piece of advice you would like to give to the new industry leaders and as well as our readers?
Throughout my career in the investment space, I have come to recognize the significance of continuous learning. Learning is an essential keystone for every leader, and it is highly advisable to stay abreast of industry trends, financial instruments, and regulatory changes through certifications and workshops.
Second, harnessing the power of big data analytics and staying in sync with technologies advancements are imperative towards gaining valuable insights, identifying opportunities, and enhancing decision making, especially in the investment sector.
Third, a crucial aspect is to build a robust professional network, gain insight of the activities in the industry, exchange ideas, and stay connected with peer mentors and other industry leaders.
Lastly, the most crucial ability is willingness to be flexible and adjust your strategies based on market condition and customer needs.
