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UnionBank shares view on transition planning especially critical during COVID-19

UnionBank shares view on transition planning especially critical during COVID-19

Transition planning was one of the main points discussed at the recently concluded virtual webinar “BusinessWorld Insights: Saving, Spending, Investing: Achieving Financial Goals even amid a Crisis,” wherein Union Bank of the Philippines (UnionBank) Private Banking Group’s Atty. Loraine Saguinsin talked about the importance of transition planning for families especially amid the pandemic, as well as the benefits of having a trusted advisor to help them navigate the current financial landscape.

According to Saguinsin, transition planning has never been as important as it is today, especially with the volatility and uncertainty brought about by COVID-19, adding that there’s no best time to start planning for the transition of a business to successors than now.

“With this pandemic, you never know what can happen tomorrow or the next day. You might lose a source of income, or your business might be disrupted. So, now is the best time to start,” Saguinsin said.

Saguinsin noted that many family businesses in the country today are still not modernized, which makes it challenging for them to let go of many of their old habits. Among these is the tendency to not plan for the transition of the business or family wealth ahead of time.

To succeed in family transition planning, she said that communication is key. She added that family members must be open to discussion about the goals that they want to achieve concerning their wealth or business, citing the growing trend of families who are drafting their own rules with regard to succession and inheritance.

“There’s a growing trend of family businesses having their own family constitutions. So they have their own sets of rules, for example, who will succeed, the required educational level or income, or their goals.”

By creating their own set of guidelines, it will be easier for families to transfer their business or wealth to the next generation or identify successors in a more democratic manner.

Aside from clear and open communication, Saguinsin also suggested to make use of the various technologies available today to become more literate in terms of managing a family business and expending family wealth.

“The most important thing to be done today is to maximize the use of technology. For example, technology can help you save. Technology can help you invest. You have different investment options online that you can access. Technology can also educate you on how to be more financially literate.”

According to the white paper titled “Connection, Transition, Transformation: Engaging Asia’s Ultra-High Net-Worth in the New Normal,” which was published earlier this year by UnionBank Private Banking and its strategic partner, Swiss private bank Lombard Odier, technology was one of the four themes that gained the most importance for the ultra-wealthy because of the pandemic, the other three being investment, sustainability, and family services. This was based on a survey conducted by the two private banks involving 150 high net-worth individuals across the Asian region.

Meanwhile, Saguinsin said that to ensure that family businesses are able to make sound financial decisions during these challenging times, they will need a trusted partner such as UnionBank Private Banking whose financial advisory services tailored to their needs can help them find new opportunities to expand their family wealth and preserve it even amid the current health crisis.

From a wealth management perspective, Saguinsin said that UnionBank Private Banking’s goal is to serve as an anchor for its clients in these uncertain times. “Our mission is to help our clients reach their financial goals and help them accumulate long-term wealth.”

With the help of UnionBank Private Banking, which will leverage its strategic partnership with Lombard Odier to provide expert financial advisory to clients, family businesses can also become more prepared to face unforeseen events and ensure that the impact of these events on their wealth and business are minimized.

“We also prepare them for any eventuality, exactly like the pandemic, and in the long run ensure a smooth transition of their assets and wealth to the next generation,” Saguinsin said.

UnionBank Private Banking offers a “world-class, seamless, and holistic private banking experience integrated with the best digital solutions in the market.” The Bank specializes in technology-driven financial advisory services designed to meet the ever-evolving needs of ultra-high net-worth investors in the country, ranging from global funds and investment strategies, to family wealth structuring and inter-generational wealth and business transition, to philanthropy and sustainability.

To learn more, visit https://www.unionbankph.com/private-banking/solutions.  


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