The global wealth management industry is now paying $8 to generate every $10 of income, calculates Scorpio Partnership in its closely watched annual health check of the global private banking sector in July.
The experience is far (more) important than a luxury freebie,” he said.īut in expanding the breadth and depth of services offered, private banks will have to make sure the extra cost is worth their while as profit margins in wealth management buckle under the increasing cost of regulation, compliance and technology. What they cannot buy - which is also what they really need - is to connect with people like them, to hear new ideas. “Our clients can buy whatever they want for the most part.
Age of wonders iii custom leader series#
Ian Ewart, head of product, services & marketing, said the bank still loved to whisk away clients on horseracing jaunts and to a welter of events hosted in the social calendar of the glitterati - including the Cowes Quarter Ton sailing regatta and annual British Academy of Film and Television Arts awards bash.īut as entrepreneur clients start to outnumber heirs and heiresses, who tend to have a different outlook, Coutts is spending more time, effort and money satisfying a thirst for intellectual “entertainment” and high-level networking in a business world where success increasingly depends as much on ‘who you know’ as ‘what you know’.Ī new thought leadership series called Futurescope has been designed to help the bank’s entrepreneurial customers analyse future macroeconomic issues and identify moneymaking opportunities in this decade and the next. Private clients pay on average 1 percent of assets under management in fees to their wealth managers each year, estimates specialist wealth management consultant Scorpio Partnership.īanks are keen to attract such fees as profits remain squeezed in other parts of their business, from high street lending to commercial and investment banking.įor example, Barclays reported a 38 percent rise in adjusted pre-tax profit in its wealth and investment management division in the first 6 months of the year compared with a 15 percent rise in its retail and business banking and 11 percent rise in corporate and investment banking.Ĭoutts, the 300-year old British bank which counts the Queen among its clientele, is beefing up its non-financial services to hold onto elite customers.
“Private banking, given the relatively lower capital requirements and the fee based nature of revenue is an area of growth and competition which is expected to increase,” Jill Zucker, a partner at McKinsey’s, told Reuters. “This is a complement to the financial advice we give clients and a recognition of the world in which our clients exist.”Īttracting the business of wealthy clients, worth an estimated $42 trillion (26 trillion pounds) globally, is critical for banks seeking not only to maintain their profitability, but also to diversify their sources of funding and reduce their reliance on capital markets. “There is more to wealth than managing one’s assets,” said David Hughes, Head of Affinity Partnerships at Barclays, which oversees the Little Book of Wonders.
These are just some of the services offered by Barclays BARC.L in its "Little Book of Wonders," underscoring the lengths to which the bank is prepared to go to win the custom of the super-wealthy at a time when its traditional businesses are struggling with weak economies and tougher regulators. A racegoer attends the fifth day of racing at Royal Ascot, southwest of London, June 23, 2012.
0 kommentar(er)
