Global Private Banking Awards 2020: Winners’ Profiles – Best Service Offerings
Best Global Private Bank;
Best Private Bank in Asia;
Best Private Bank for Impact and Sustainable Investing
UBS
Despite the Covid Pandemic, UBS’s Asia Pacific private banking operation enjoyed its best half year on record in the first six months of 2020. Profits doubled in the second quarter, boosted by high demand for structured products, according to the bank. “Cost discipline” also reduced expenses, driving the cost/income ratio down to its lowest ever level.
Iqbal Khan, the flamboyant, newly appointed co-head of UBS Global Wealth Management, is not slow to sing his new employer’s praises in this region. “With over 150 years of experience in dealing with multi-generation families, we’re well placed to be the number one foreign wealth manager in China and remain the number one in Apac,” he says.
But there has been an internal recognition that UBS can no longer be a one-trick pony in wealth management, with all new assets flowing from Asia, as has happened in the past. Bank bosses say their much touted “global integration,” which has merged the US operation with the global one, will help share resources, and ensure the wealth management operation diversifies regionally. The bank says that in the first half of 2020, two thirds of net new money was generated in Emea, with the residual spread evenly across other regions.
Top management prides itself in having created a “competitive advantage that’s unmatched,” through closer collaboration between different units. Its latest ‘3L’ concept of liquidity, longevity and legacy has combined internal work on behavioural economics with research on clients’ emotions and needs.
This focus, being rolled out across geographies and client segments, is likely to run for some time and the bank has already credited it with helping guide clients’ portfolio positioning effectively through the Covid-19 pandemic.
“The three Ls is not just a marketing slogan to us, it’s the core of our philosophy,” says Mr Khan, adding the new concept helps “frame conversations around what matters most to our clients, and enables us to be their financial life partners.”
The bank recently announced that sustainable investments are now the firm’s preferred solution for private clients investing globally. Of its $2.6tn in client assets, the bank claims nearly $500bn is invested sustainably. UBS believes a 100 per cent sustainable portfolio can deliver potentially higher returns than traditional investment portfolios, with strong diversification for clients investing globally. The pandemic, says the bank, has helped accelerate this shift by highlighting the vulnerability and interconnected nature of the world’s societies and industries.
“The shift in preferences toward sustainable products and services is only just beginning,” says Mr Khan. “We believe sustainable investments will prove to be one of the most exciting and durable opportunities for private clients in the years and decades ahead.” YB
Best Private Bank in the Middle East;
Best Private Bank in Russia;
Best Private Bank for Entrepreneurs
Credit Suisse
Credit Suisse’s private banking arm has enjoyed much success in the entrepreneurial segment, which it sees as a primary growth engine. The bank says it has been collaborating with entrepreneurs to realise their ambitions, finance their businesses and manage their legacies for more than 160 years.
“We continually seek ways to better serve this sophisticated client group, whose banking needs require private and corporate solutions along the whole entrepreneurial lifecycle, often across different countries and currencies,” says Philipp Wehle, CEO international wealth management at Credit Suisse. “Privately owned companies are the backbone of many economies and represent an important part of the overall wealth of our client base.”
The bank has further strengthened this focus with the appointment of Christian Meissner to co-ordinate wealth management and investment banking services for entrepreneurial high net worth clients, offering them lending and wealth planning, as well as advice on mergers and acquisitions, concentrating on mid-market opportunities.
Many of these clients have connections to emerging markets, where Credit Suisse is particularly strong. It was one of the first foreign banks launching in the Middle East back in 1967, offering a “robust” approach to risk management, minimising any focus on ‘politically exposed persons’.
Servicing Russian clients, who typically need support in Switzerland, the UK, continental Europe and Asia, has also proved lucrative, with the bank developing “a deep understanding of the country’s specific requirements” over the last 25 years, according to Anton Cherny, head of IWM emerging Europe at the Swiss bank.
Against a challenging backdrop, Credit Suisse has recruited wisely to replace key staff, including former wealth management boss Iqbal Khan, who defected to Zurich rival UBS after a well-publicised fallout with group CEO Tidjane Thiam, who has also since left the bank. YB
Best Private Bank in Brazil; Best Private Bank in Latin America for Customer Service
Itaú Private Bank
Latin America as a whole has had a challenging year in 2019, but economic policy and a strong reformist agenda helped Brazil fare better.
On a structural basis, the country’s capital markets were very active during the year, driving new liquidity events. “We were able to attract net new assets from the competition and also from this new wealth and liquidity creation,” says Luiz Severiano, CEO at Itaú Private Bank. “Our structure and positioning played the strongest roles in attracting new clients and motivating our current customers to continue concentrating their investments with us.”
As interest rates remained low, the bank focused on further expanding its investment platform, adding new investment solutions both in the traditional and alternative investment areas.
Itaú Private Bank’s strategy is built on four pillars: client centricity, sustainable partnerships, constant evolution, and relationships built on trust. The bank believes that the success and sustainability of its business requires relationships of trust with clients, as well as the delivery of outstanding financial advice and services.
“In order to do that, we need to be the trusted adviser of the client: help them with their wealth planning needs and investment advice, locally and abroad, in addition to using our corporate and investment bank structure to help them with their businesses, real estate investments and other real assets. And we need to do that in a very customised manner, understanding each client’s needs, circumstances and aspirations,” Mr Severiano explains.
Covid-19 presented the business with challenges requiring adjustments to the bank’s operations. But the pandemic has not altered the bank’s growth plans – so far in 2020, net new assets have sustained last year’s record levels.
“We had already been preparing for a more intensive use of technology, and this advance investment allowed us to decisively shift 100 per cent of our operations to the home-office model and provide our complete range of services at a distance,” he adds. “Our relationships with our customers have grown even stronger as they have recognised our dedication and efforts to maintain our high service standards.” PG
Best Private Bank in Malaysia;
Best Private Bank for Islamic Services
Maybank
Client-centricity is deeply entrenched in Maybank’s mission and strategic plans. The bank, Malaysia’s largest by market capitalisation, views its private banking arm as more than just an investment solutions provider, but also a wealth partner for clients across the region.
A strong brand name and good reputation have been key contributing factors to the bank’s growth in 2019, as more private banking customers see the firm as a trusted partner to manage their wealth aspirations.
According to Carolyn Leng, head of Maybank Private Malaysia, another crucial driver of growth has been the bank’s ability to deliver “new innovative products, investment opportunities and differentiating propositions” to their clients. As an example, the bank granted clients exclusive access to investments in IPO financing through Lombard.
The launch of new products has also contributed to the rise in assets under management. Maybank Islamic, for instance, launched the Maybank Global Mixed Asset-I Fund in 2019.
The Covid-19 pandemic has changed the way the bank engages with clients and has also accelerated the adoption of technology, with advisers quickly switching to videoconferencing to keep in touch clients. “The new restrictions did not stop them from continuously engaging with our clients, to update them on the market, as well as to discuss investment portfolio strategies, which is key during this time of market volatility,” she says.
Looking forward, Maybank Islamic will continue to aspire to be the leading bank in the Islamic wealth management space in the Asean region.
“We will continue our product innovation to provide a full suite of Islamic wealth solutions offering and improve our infrastructure, especially on Islamic wealth digital banking. As for Maybank Private, we look to offer more access to sukuk and Islamic offerings, as well as improve our Islamic wealth solutions,” Ms Leng adds. PG
Best Private Bank in Spain;
Best Leader in Private Banking: Victor Allende
CaixaBank
The biggest current transformation at CaixaBank, which profited from Spain’s extensive banking consolidation with several selective acquisitions, incorporated by an innovative technological platform, is moving clients to a fee-based service from a DIY model.
“I remember when people used to say that the Spanish don’t want to pay for advice, but that is nonsense, everyone wants to pay for something they believe is value added,” says Victor Allende, executive director of private banking at Caixa Bank. “We have a long way to go, but we are the leaders in Spain by far for fee-based structures. Our competitors are only just starting to instigate this approach.”
It is this focus on business models that he feels will define the key private banks in the Iberian peninsula, particularly when it comes to attracting talent. “You cannot change the portfolio constantly every month, that does not work,” he says. “You need a fee-based strategy in Spain.”
The aim for the ambitious Mr Allende is to stay ahead of the high quality local competition. “It is good when others are doing something similar to you,” he says. “But when you are the only one out there, doing something a little crazy, sometimes you think: ‘Am I doing the right thing, when everybody else is on the other side of the road?’ I used to worry about this, but now I know we are on the right side of the road with our transformation, fee-based structure and business intelligence.”
While there is a strong interest in the bank’s mutual funds franchise, engagement with real estate markets has fallen dramatically. “In the past, many Russians, Chinese, Latin American clients and customers from all over Europe were coming to us in Spain,” says Mr Allende. “But there are no questions from them today. They are waiting for a drop in prices.” YB
Best Private Bank in Asia for Customer Service
Taishin Bank
Taishin Bank’s goal is to become the first choice for clients in Greater China and the Asia-Pacific region wishing to grow their wealth.
As such, the bank has dedicated time and resources to develop a robust platform supported by a professional team of financial consultants, a wide range of investment solutions, and the help of big data to better understand client needs.
“Using data to understand clients and their spending and saving habits is key for Taishin Bank’s services. To combine data knowledge and insights with a complete digital offering enables the bank to set itself apart from its competitors in the region,” says Samuel Lin, deputy CEO.
The bank serves high net worth individuals, family offices and corporates, offering a comprehensive range of wealth management solutions, including trust services, insurance and investments via an extensive range of products.
The unstoppable move towards a more digital banking world has driven the bank to build an omni-channel platform that serves clients 24 hours, through a combination of video conferencing, digital branches and other services such as face-to-face conversations via VTMs
[video teller machines]
during non-business hours.
Recently, the bank introduced its ‘Loyalty Program 2.0’ and the concept of ‘Taishin Points’, aimed at improving the customer experience and promoting long-term loyalty. Launched during the pandemic, the program encourages clients to increase their online transactions to earn points, which can be exchanged for VIP perks and exclusive benefits such as cash credits, travel or hotel vouchers. PG
Best Private Bank in North America for Customer Service;
Best Private Bank for Philanthropy Services
Bank of America Private Bank
Bank of America’s team-based approach is key to establishing a deep understanding of clients’ values and objectives, prior to creating customised strategies. Such a team would typically include a private client adviser, supported by specialists in portfolio management, wealth strategy, philanthropy, credit, banking and trust services.
“Having served generations of families, we have the knowledge, resources and expertise in areas such as wealth strategy and investment management to serve their needs across generations,” says Jeff Busconi, chief operating officer and head of products and services at Bank of America Private Bank, manages close to $500bn in private client assets.
The bank has observed changing priorities for its next generation of clients, accelerated by the Covid-19 pandemic, with an increased focus on transitioning wealth between generations and making sure this wealth is serving a positive purpose.
“The pandemic has brought many of our families closer together to have these conversations,” says Mr Busconi, with clients now more likely to think about managing their wealth from a whole family perspective. “It is an opportunity to look at everything from wealth and estate plans to trusts and investment.”
Among the topics being discussed by families are philanthropy and ethical investments, with clients increasingly addressing economic, environmental, social, racial and public health issues, which have been further exacerbated by the pandemic.
Each day the bank hosts around 2,000 virtual client meetings, with these remote connections becoming a “way of life”, bringing together geographically dispersed families.
But physical meetings are still expected to return post-pandemic, with the bank envisioning a future blend of “high-tech and high-touch” techniques.
“Wealth management is inherently a people business,” says Mr Busconi. “The importance of human connections between clients and their advisers will always be essential.” YB
Best Private Bank in Australasia for Customer Service
Westpac New Zealand
Westpac Private Wealth Management is a division of Westpac New Zealand, offering high net worth clients wealth management services and investment expertise from one of the largest financial institutions in the country.
As part of its growth strategy, the business has focused efforts on identifying new clients – with particular attention to new residents in New Zealand – as well as on building deeper connections with existing customers.
In terms of investment offerings, recent developments included the implementation of the measurement of ESG risk and carbon analysis for all equity portfolios, a review of their approach to alternative investments, and bringing the management of domestic fixed income strategies in-house, to provide enhanced risk management and increase oversight.
“We are committed to providing exceptional services to our clients and building deeper connections. We focus on the value we can add to our clients’ lives, allowing them to spend more time on the things that are important to them,” says Katie Christoffersen, head of private wealth management.
Ms Christoffersen explains that the coronavirus crisis triggered the rapid implementation of new processes to support clients. “We have robust business continuity plans so our clients can trust us to take care of their assets and protect their risk while they spend time focusing on rebuilding or growing their businesses, helping their children or spending less time in the office.”
Looking ahead, the bank has plans to continue working on the development of new processes, strengthening their wealth management product offering, and increasing client communications to save clients’ time and deliver targeted support. PG
Best Performing Private Bank in North America;
Best Private Bank for UHNW Clients
JP Morgan Private Bank
Successful private banks that serve the largest and most complex families around the world are acutely focused on three things, according to JP Morgan Private Bank, which manages $672bn for its wealthy clients.
The first is delivery of investment performance, the second is risk management including cyber-security and safeguarding of assets, and third is top drawer client service.
“To do all three well over time requires consistent investment in talent and technology, and a relentless focus on process improvement,” says Mary Callahan Erdoes, CEO, JP Morgan Asset & Wealth Management.
“We continue to invest in having the best people because we believe the way to win in this business is through people and technology, not people or technology,” says Ms Callahan Erdoes, who champions the bank’s “digital everything” approach.
With US clients plagued by a dual uncertainty caused by the upcoming US presidential election and Covid-19 pandemic, most are forced to be more focused on their long-term goals, requiring advice on how to stay on track with investments.
“We are seeing a lot of interest in short-term liquidity management solutions, yield-based investments, thematic equity strategies, estate planning tools and private equity, among other areas,” she says. YB
Best Private Bank in Europe for Succession Planning
Société Générale Private Banking
While Société Générale has struggled globally in private banking, particularly since its withdrawal from Asia and entrenchment in markets closers to home, succession planning is a discipline in which its reputation has remained particularly strong. The bank describes it as “a necessity and a priority”.
It is currently concentrating on France and the UK as core markets, although the London-based subsidiary Kleinwort Hambros has recently been touted around prospective buyers for a sale.
Managing €119bn ($140bn) in client assets, the bank prides itself in offering a particularly broad range of services to entrepreneurs. Bankers insist on meeting children of their clients and pay particular attention to the drafting of the beneficiary clauses of life insurance contracts in order to adapt their wording to the family situation and their objectives.
In addition, SocGen offers dedicated training courses on financial, patrimonial and real estate themes to “train” the next generation for the management of family assets they will one day inherit.
Increasingly, a driving force for these younger clients is “giving meaning” to the assets they inherit, through responsible investments that are not only profitable, but also “make sense”. SocGen suggests a full “asset audit”, believing it is mandatory for a bank to put itself in the perspective of a global relationship.
This must extend beyond asset management in order for the business not to be impoverished, says the bank. “Indeed, the backbone, the DNA of Société Générale Private Banking is built around global asset management and anticipation.” YB
Best Private Bank in North America for Succession Planning
Wells Fargo Wealth & Investment Management
To effectively assist clients with succession planning, it is fundamental to understand their intent and what they are trying to accomplish, says Michael Liersch, head of advice and planning for Wells Fargo Wealth & Investment Management.
It is also crucial to look at wealth transfer from a variety of angles, including family dynamics, business and personal legacy, an approach that has been particularly successful during the Covid-19 crisis.
“During the pandemic, and all the surrounding uncertainty, our advisers’ ability to help clients articulate and communicate the ‘why’ and core values around their succession plan and business strategy has been in high demand,” reports Mr Liersch.
Focus on business transition, and evaluating whether entrepreneurs want to hold on to, or sell their businesses has been “an enormous value-add” to the relationship during the healthcare emergency. Similarly, clients have “highly appreciated” advisers’ support in assessing wealth strategies and structures that can fulfil, and maximise, the impact they would like to have with their business and wealth.
Potential tax law changes in the US around gifting to family members or changes in the step-up basis are another cause for concern, pushing HNW clients to review their wealth plans.
The bank has expanded and deepened training of advisers to discuss topics such as how to reach-out to, and connect with clients during emotional and challenging times, or identify the best way to hold a family meeting via Zoom with 10, 20 or more family members.
“What we’ve found in these trainings and calls is that there is not a ‘one size fits all’ approach. Instead, we have our advisers share stories, what has worked, and what hasn’t worked, to inspire thoughtful interaction with each individual, couple, family that we serve.” ET
Best Private Banking Boutique in Europe
REYL & Cie
Geneva-based Reyl Group is able to offer clients a complete range of services comparable to its largest peers, says François Reyl, CEO of Reyl & Cie.
“It is through our entrepreneurial drive that the business has grown over the years to offer a full range of solutions through five business lines,” he says, proudly talking about the bank which now runs $14.5bn in client assets. These five departments are wealth management, entrepreneur and family office services (Efos), corporate advisory and structuring, asset services and asset management.
It is Efos clients which are particularly dear to Mr Reyl’s heart and the bank promises them special services, more typical of larger firms. These encompass the setting up of international mortgages, loans on works of art, restructuring companies and raising of corporate financing in debt or capital.
Indeed, five years ago, the new bank was not treated seriously by many in the Swiss lakeside city. But those doubters, who had previously dismissed radical Geneva boutiques that eventually grew to join the mainstream – including UBP and Banque Syz – are now begrudgingly recognising Reyl.
In fact Mr Reyl cannot resist a dig at the banks in the Swiss establishment. “We place great emphasis on building genuine partnerships with clients as opposed to one-way relationships based on selling undifferentiated products,” he says, outlining a philosophy of tailoring solutions to the unique real-life and financial needs of each client.
“We never rest on our laurels and Reyl constantly looks for ways to better serve our clients and meet their evolving needs,” he adds. This approach has led to the creation of Asteria Investment Managers, a dedicated impact investing affiliate, and Alpian, a new Swiss digital bank for the mass affluent client segment.
The bank has decided to work with similar, smaller institutions in the private equity sphere. “We see clear and defined demand for private equity from our clients,” says Mr Reyl. In order to meet this, the bank has partnered with Bank Pâris Bertrand Sturdza SA and Bordier & Cie to form Hermance Capital Partners – an investment boutique focusing on private equity, private debt and private real estate. YB
Best Private Banking Boutique in the US
Boston Private
Boston Private prides itself in its goals-based approach, its “pure” fiduciary model, and the “depth of intellectual capital” it delivers, coupled with its boutique service.
“Clients want partners who can help them solve complex wealth issues, not simply outperform the S&P Index. They want advice-driven service, not product-driven prescriptions, and to be assured that we put their interests first at all times,” states Paul Simons, president of private banking, wealth and trust at the US bank.
The bank, which has offices in Boston, New York, San Francisco, Los Angeles and Miami aspires to be a “nationally recognised destination” for clients of substantial wealth and complexity of need, and advisers who serve them. “’Boutique’ is not a threshold issue, but a definition of how we serve our clients. We firmly believe it’s possible to both scale and maintain boutique-level service,” adds Mr Simons.
Making smart investments in technology and infrastructure is aligned, not at odds with, personal client service and relationships. This has been validated by the pandemic.
While before 2020 and pre-Covid the conversation had revolved around robo versus adviser, now there is recognition digital tools can be used and technology leveraged, but banks can still have advice and personal relationships as a core value proposition. “Increased acceptance and comfort-level with technology, despite stemming from necessity, has actually created lasting positive change in how advisers and clients connect. We’ve learned that you can still deliver a high value, bespoke service in an increasingly remote environment,” he says.
In 2019, Boston Private established a family office practice, to cater to the needs of family offices and closely-held family business. This is a client segment “the financial services industry struggles to serve effectively”, largely because they are both “private clients” and “institutional investors/business owners”.
Boston Private is able to serve ‘family enterprises’ with the scope of services they require but is not challenged by the highly segmented nature of large institutions, claims Mr Simons. “We find we’re able to offer services and add value where bigger players can’t or won’t.” ET
Best Private Bank for Alternatives
LGT
LGT, the bank owned by the Princely Family of Liechtenstein, has developed its offering of alternative investments for private clients over the past two decades, leveraging its experience in running its ‘Princely Strategy’. The bank’s flagship product allows clients to invest alongside the Princely Family and contains a substantial proportion of alternative investments.
Private markets, in particular, have become increasingly popular with wealthy clients, but how has the pandemic affected the outlook for this asset class?
“Well advised investors are increasingly looking at private markets as a way not only to enhance returns but also to access a unique opportunity set not available through public markets,” states Thomas Piske, CEO at LGT Private Banking.
Past crisis behaviour indicates that periods of rapid market dislocation and economic contraction will affect asset valuations, reduce distributions and increase capital calls, as fund managers draw from existing commitments to support their portfolio companies, explains Mr Piske. Those vintages and dislocations can be very attractive for new commitments to the asset class, or open opportunities in private equity secondary deals or distressed private debt.
“Nevertheless, we believe timing is a secondary consideration when it comes to private markets due to the long holding period,” he adds. “Investors should consider long-term and disciplined investment plans when building private equity portfolios, rather than reacting to short-term market sentiment.”
Premia delivered by private markets over public markets have come under pressure over the years, but the significant performance differential between top quartile managers and the rest highlights the importance of manager selection and bottom-up investment analysis. “We believe that attractive premia can still be found in the asset class.”
LGT has also been highly commended for its offering of impact and sustainable investing.
“Today, an increasing number of investors perceive sustainable investments as a long-term allocation towards higher quality investments that represents their values. The resilience of sustainable investing throughout the Covid-19 crisis also proves that it does not only benefit from the long bull market, but can also withstand the turbulences of a sudden crash,” says Mr Piske. ET
Best Private Bank for Thematic Investing
Bank J. Safra Sarasin Ltd
Sarasin & Partners LLP
Thematic investing, already popular among private investors before the coronavirus pandemic, has received a further boost by the healthcare emergency, which has accelerated many structural changes.
“Investors are looking for investment opportunities in sectors or themes that may benefit from the pandemic in the short term and be structural winners in the mid and long term too,” explains Pierin Menzli, head of thematic equities at Bank J. Safra Sarasin.
Investment themes around human health and technology have particularly resonated with wealthy clients. “Along with incremental investments in healthcare infrastructure due to Covid-19, we expect an acceleration in many innovative medical areas, such as diagnostics and life science, renewed political will for reform, and the empowerment of patients as consumers through the increased use of consumer health devices and improved health monitoring,” says Mr Menzli.
Telehealth, the ability to talk to one’s doctor remotely, is likely to become a new standard interaction channel in the health space, complementing patient-doctor visits.
The pandemic has transformed the way we work, entertain ourselves, shop and socialise, fuelling demand for video calling, as well as social media, streaming and gaming. It has accelerated tech trends like AI, robotics and cybersecurity.
“A thematically-led investment process allows us to identify global companies that can thrive in this era of disruption,” says Jerry Thomas, head of global equities at asset manager Sarasin & Partners. “Where there is disruption there is opportunity, as investors typically underappreciate the duration or magnitude of change. The thematic approach allows us to find sources of growth and avoid structurally shrinking industries,” adds Mr Thomas.
Sustainability considerations play a key role in identifying winning business models of tomorrow. The bank’s four broad investment themes, ‘Green Transition’, ‘Future of Health’, ‘Changing Consumers’ and ‘Technology Disruption’ are closely connected and driven by environmental, social, technological and regulatory changes.
In addition, ESG and sustainability considerations are embedded in every stage of Sarasin’s thematic investment process, from idea generation to portfolio reporting. ET
Best Branding in Private Banking
Quintet Private Bank
Quintet Private Bank, known as KBL European Private Bankers until early this year, is not new to transformations and rebranding. Founded in 1949 in Luxembourg, the bank has expanded across Europe through organic and inorganic growth since the 1980s, changing its name from KBL to KBL European Private Bankers in 2008, to reflect its pan-European vision and local roots.
Quintet defines itself as “Europe’s only network of boutique private banks, building on the heritage and track record of strong domestic brands, with deep local knowledge and cross-border expertise”. Owned by Precision Capital, an investment vehicle for Qatar’s royal family, today Quintet operates in 50 cities across Europe.
‘Quintet’ draws inspiration from classical music. “Quintet stands for the idea that human beings can achieve extraordinary things, and true harmony when they align behind a common purpose, whether that is in the context of a musical ensemble or a private banking business,” explains Jakob Stott, group CEO at Quintet Private Bank
Partnership and collaboration are key brand values, as the bank aspires to be “the most trusted fiduciary of family wealth”.
“Our purpose explains why we are in business and what we seek to achieve. It informs our brand, reminding us every day who we are and who we aspire to be. That is reflected in our culture of partnership.”
The bank’s leaders act as role models and “incentives, rewards and performance reviews all take strongly into account how we behave,” adds Mr Stott.
Putting clients’ interests first and working together to achieve that goal is the brand’s promise. “By explicitly making that promise, the cost of not delivering would be high,” he says.
The bank partners with West-Eastern Divan Orchestra, which gathers musicians from across the Middle East, embracing their differences and representing this partnership mindset.
Our judges, led by branding strategist Helen Westropp, rewarded Quintet for its distinctive brand values, culture, and story-telling behind the brand. ET
Best Private Bank for Millennials
Coutts
Having shed its Asian and Swiss businesses due to group priorities, the 328-year old private banking business of Coutts still has global ambitions for servicing clients. “We are as committed as ever to growing our international client base for their UK needs,” says the bank’s CEO, Peter Flavel. “This is where we excel and have the expertise they seek.”
Behind the scenes, Mr Flavel has been working closely with the broader NatWest group, which it merged with in 1920. “It’s terrific to see the high level of new private bank clients now coming from our NatWest commercial banker referrals,” he says.
In addition, Coutts has been striving to revitalise its investment proposition, passing on cost savings to clients which have resulted from buying in new technology to improve efficiency.
But perhaps the most interesting factor in the bank’s development has been how it has attracted a new generation of clients despite its old school ethos and image. “I’m not sure there is a private bank which is more traditional than Coutts globally,” says Mr Flavel.
“What that perception misses, however, is one of the reasons Coutts has been successful for so long. We were innovative from our beginning.”
The latest wave of this innovation has involved a huge change in how the brand has been marketed to clients, recognising that the sources of wealth creation have changed dramatically.
“We are adapting to these changes, and we now have specific teams and advisers dedicated to e-gaming, influencers, new media, VR/AR [virtual reality and augmented reality] and the like,” he says. “I am committed to ensure that we remain relevant to our clients and the aspirational brand that is Coutts.” YB
Best Private Bank for Growth Strategy
Banca Generali
Last year Banca Generali posted its best financial results in its history. Client assets surged by 15 per cent to €69bn ($81.5bn), fuelled by more than €5bn in net new money and remarkable asset performance, while operating profits rose by 41 per cent.
Its comprehensive offering of wealth management services, quality of the advisers’ network and strong brand are key factors of the bank’s success, explains Gianmaria Mossa, CEO, Banca Generali.
Banca Generali, which is part of insurance Generali Group, is now Italy’s third biggest wealth management player, and the largest financial adviser-based private bank in the country.
In 2019, the bank completed the acquisition of Swiss-based boutique Valeur and investment boutique Nextam Partners, which also contributed to asset growth.
The bank relies on an ‘open banking ecosystem’, which facilitates the integration of services aimed at providing a holistic offering to wealthy families and entrepreneurs. This business model has continued to prove its worth during the pandemic, as the bank attracted more than €4bn in net new money in the first nine months of this year.
“Organic growth remains our priority,” says Mr Mossa, adding that when the right opportunities arise, ad-hoc acquisitions are also on the table.
Sustainable investing is proving to be an important growth factor. Demand for ESG investments has been so strong that the bank has already achieved its 2021 goal to reach 10 per cent of its AuM in ESG solutions.
Mr Mossa is looking to further expand the bank’s platform of ESG solutions, launched in February 2019 with investment adviser MainStreet Partners, as it allows private bankers to build portfolios that are “truly tailored to clients’ social interests”.
Through BG Saxo, the joint venture developed with Danish fintech Saxo Bank, Banca Generali offers an online trading platform which has experienced a significant boost this year, helping the firm to further diversify its revenues. The pandemic has accelerated the ongoing digitalisation of the bank, supporting a “substantial streamlining of bureaucracy and operations” for its 2,000 private bankers and wealth managers.
“Digitalisation is one of the pillars that drive our business, but can never replace the core of private banking, which is represented by the relationship between the adviser and the client,” he adds. ET
Best Performing Private Bank
Industrial Bank Co., Ltd.
For the second year in a row, Industrial Bank emerged as the best performing bank from the KPI quantitative analysis carried out by PWM across all institutions taking part in this year’s awards. In 2019, the bank experienced an impressive 38 per cent growth in operating profit, with number of clients rising more than 30 per cent. Its AuM surged 24 per cent to $75bn, fuelled by significant net new money flows.
Industrial Bank has built a strong brand in the Chinese financial market, especially thanks to its risk management capability and expertise in the high-yield space, explains Jinguang Chen, vice president of Industrial Bank private banking. Its diversified product offering, combined with dynamic asset allocation capabilities and investment advisory skills, with investment views delivered daily through mobile banking, have also proved key growth drivers.
In China, more than 50 per cent of private banking clients are entrepreneurs, and these represent a target client segment for the bank, which offers them M&A financing, bond issuance and underwriting, in addition to wealth management services.
The bank prides itself on having pioneered the family trust business in China five years ago. There are more than 700 billionaires in the country, of which more than 60 per cent are aged 50 or over, and transferring their wealth and business to their children is at the forefront of their minds.
“Family trust financial solutions are in great demand, the market is hugely developing and there are many opportunities for profit,” states Mr Chen.
Leveraging on its capabilities in investment banking, asset and wealth management, the bank has formed a ‘private bank family office’, while launching a new dedicated brand, ‘Xing Cheng Shi Jia’ ( ‘prosperity, succession for generations’) in 2019.
With more than CNY100tn ($15tn) in financial assets, the domestic wealth management market is huge. “There is a big room for commercial banks to develop in the private banking space in China,” says Mr Chen, acknowledging there is still “a big gap” between domestic commercial banks and advanced international investment banks, when it comes to asset management capabilities and advisory services. ET
Best Private Bank for Business Continuity Plans (Covid-19);
Best Private Bank for Global Families and Family Offices;
Best Private Bank for Customer Service
Citi Private Bank
Citi Private Bank increasingly focuses on capturing the financial and business interests of global families with tentacles in several locations on different continents. In the Emea region alone, the bank identifies more than 35 different nationalities – active in businesses including biotech, consumer electronics, aviation, hospitality, real estate and shipping – making up its private client book.
In addition, the bank is targeting particular pockets of cross-border oriented wealth. “There are many well-established cross-regional corridors where clients’ lifestyles and business interests naturally predispose them to an international view of the world with a requirement to manage assets and finances across countries and continents,” says Peter Charrington, New York-based global CEO of Citi Private Bank, responsible for assets of more than $300bn.
Among these groupings he highlights the Indian diaspora, with close links to the UK, UAE and Africa; Russians with interests in the UK and France; and the Middle East, which has close ties to both the UK and US.
Despite this global perspective, many clients are still guilty of home bias, entailing “idiosyncratic country risk”, according to Mr Charrington, who sees his job as advising families about more diverse opportunities across classes and geographies.
To diversify from a traditional bias to income-producing prime real estate assets in London and New York, Citi is increasingly channelling more clients into opportunistic, value-added opportunities such as student housing and senior living, with a lower correlation to economic crises. Many clients have backed these themes, with Citi posting a $33bn net new money inflow in 2019.
“Opportunistic themes such as distressed hospitality are especially popular post-Covid-19,” says Mr Charrington. He points to the pandemic’s influence on the proliferation of digital infrastructure such as data centres and masts, allowing investors to capitalise on accelerating growth in data and traffic.
The broader portfolio picture he paints is one of dramatically dispersed valuations, leading to both substantial investment opportunities and risks. In Citi’s view, massive government spending combined with Covid’s industrial impact has left some asset prices too high and vulnerable and others depressed and poised for a post-pandemic recovery.
While Citi made a fast move to remote working at the start of global lockdowns, many staff are returning to offices, with clients increasingly offered face-to-face meetings “in a controlled, safe environment”. YB
Best Private Bank for Education and Training of Private Bankers
Banco do Brasil Private
Private banking is a people business and the training of private bankers plays a key role in attracting and retaining both talent and clients.
“Education is crucial to enhancing customer service quality and client experience, at every point of contact with the bank,” says Renato Proença Lopes, head of Banco do Brasil Private.
When new private bankers are brought in, often sourced from Banco do Brasil Premium, they go through an intensive training programme to acquire hard skills such as technical knowledge on products and services, but also improve soft ones, such as customer service and behaviour. Almost 80 per cent of bankers are certified financial planners.
The Corporate University of Banco do Brasil provides a wide range of courses, through a variety of channels aimed at meeting the strategic objectives and training needs of each department within the bank. In addition to the general programme, training initiatives are tailored to the bankers’ individual needs, the specificities of the market in which they operate, and the profile of the clients they serve.
To attract and retain talent, in 2019 the private bank significantly increased its entry level salary, linking the variable segment to more objective criteria, such as business performance and customer satisfaction. These changes contributed to limit banker turnover to less than 10 per cent.
In partnership with renowned higher education establishment Fundação Getúlio Vargas, the bank has developed an MBA programme for its private bankers. It also offers several programmes to enhance and develop leadership skills, including one aimed specifically at women.
Regular surveys monitor customer satisfaction. “In most recent surveys, we have observed continuous improvement around investment advisory and relationship management, which indicates the initiatives adopted are bringing the expected results,” says Mauro Ribeiro Neto, chief corporate officer. The net promoter score, the percentage of clients rating their likelihood to recommend the bank, continues to improve. “We strongly believe that investing in training our bankers is essential to expand our presence in the market, especially in this competitive scenario,” states Mr Ribeiro. ET
