All articles by PBI Editorial
PBI Editorial
All in the Family
The family office model will continue to enjoy rapid expansion across Europe, according to US researchers Celent. This is echoed by another US wealth consultancy Cerulli, which believes that around two to three percent of the wealth traditionally managed by private banks is now controlled by family office structures.
The impending Blackberry challenge
Can private banking reach the new Blackberry generation?Charles Davisreports.Move past multi-generational wealth to the bulging mass affluent and emerging affluent segments and the technology becomes increasingly advanced: for example, try finding a US entrepreneur without a Blackberry in their hands.With the number of affluent individuals in North America expected to grow from 30 million to 37 million in the next three years, private banking is set to reach a younger market segment than ever before.To reach the rapidly expanding affluent market, private bankers have to be able to deliver private banking services seamlessly and on the clients terms, where they work, play and live.Little wonder, then, that private banks are pouring money into new wealth management platforms and innovative delivery systems Research company Celent reports financial companies will spend $1.5 billion in new platforms and modules in 2007, almost double what was spent in 2004.Internet technologyIn the most vivid example of the spread of popular internet technology to private banking to date, Commerce Bancorp announced that its proprietary, web-based private banking platform, Virtual Private Bank, is now available for its customers via their Blackberry, Treo or any other personal digital assistant (PDA) with an internet browser, including the new iPhone.While other financial service companies offer account aggregation services and calculators online, Commerce Bank is the first to deliver a highly sophisticated wealth-management tool on a wireless device, allowing customers to view all their pertinent banking information.The move enables Commerce Banks private banking customers to seamlessly access all of the information they need on a device that they typically never leave home without
Vote for your private banking champions
Private Banker International has commenced gathering submissions and recommendations for its annual wealth awards.These accolades, which this year will be presented at the 18th PBI Wealth Summit in Singapore in November, have gained a reputation of being the most authoritative and reliable indicators of success in wealth management.They are based on submissions by PBIs worldwide readership, and then scrutinised by an independent judging panel in order to create the most objective and unbiased results (see The PBI Awards 2008).The PBI Awards will go to those companiesindividuals which are recognised by their peers and clients as demonstrating excellence under a range of criteria:Demonstrable professionalismIn-depth technical expertise and knowledge in their fieldFirst class client serviceMarket-leading financial productsservicesInnovative portfoliofinancial planning solutionsThe PBI awards have become a valuable wealth industry tool in identifying the type of best-in-class business models and innovations that are winning in the dynamic modern wealth industry.This year, the major awards include:The Outstanding Global Private Bank;The Outstanding Private Bank Asia-Pacific;The Outstanding Private Bank Europe;The Outstanding Private Bank The Americas;The Outstanding Private Bank Middle East;The Outstanding Wealth Manager Customer Relationship SkillsWe are also introducing a new category, namely:Most Exciting New Wealth Model Asia & Rest of WorldThe two awards in this section aim to identify the brightest and the best in the wealth business, finding the formula that really presses the envelope in terms of superior client servicing
UK raises £400m from tax amnesty
A total of £400 million has been paid by approximately 45,000 holders of offshore bank accounts, who met the deadline of 26 November, under the official offshore disclosure scheme, according to HM Revenue & Customs (HMRC).The largest payment under the amnesty was £3 million ($6.15 million); the average was £9,000 Some 64,000 people had registered a potential liability in July 2006.The sums raised fell well short of a target, thought to be around £1.75 billion, to raise tax revenues under the disclosure system, although HMRC has denied that it had released such an estimate
Private banking push from ICICI, ING Vysya Bank
The bank already has 1,500 customers in the $1 million net worth and above segment.Its expansion will be driven by the continued surge in the Indian stock market and rapid economic growth, according to ICICIs private banking head, Anup Bagchi As a result, the headcount is due to rise by 100 in the next six months from the present 350.However, ICICI admitted that, with foreign banks competing to win high net worth Indian clients, it is facing rising defections of its private bankers to its rivals, including chartered accountancy firms trying to build their own wealth management propositions
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ABN AMRO wealth chief may run Fortis in Asia
A prospective merger of private banking capabilities between Belgiums Fortis and ABN AMRO will create a powerful new wealth force in Asia and the Middle East, with $30 billion in clients assets under management, according to ABN officials.Under the Royal Bank of Scotland (RBS) consortiums counter-bid to Barclays for ABN, consortium member Fortis will take over the Dutch groups international private banking and asset management operations If RBS succeeds, a combined ABN-Fortis private bank in Asia should be the sixth largest, the officials indicated.Barend Janssens, head of ABNs private bank in Asia, said if the merger goes ahead, the combined ABN-Fortis unit would have 50 percent more client assets more than the $20 billion that ABN private bank currently manages for its clients in Asia The highly regarded Janssens has just been voted by PBI readers as Asian Private Banker of the Year in PBIs 2007 Awards.Significantly, two senior executives have lately departed from Fortis in Singapore, making it likely that Janssens will head the combined unit, according to knowledgeable bankers in Singapore.Fortiss Henk de Glint has joined UBS as executive director in Singapore, where he will be key client manager for a number of countries, including Malaysia
UBS blocked from branch expansion
In what is an effective regulatory embargo against further growth in India, an application by UBS for its first banking licence to help build its wealth management services has been delayed by the Reserve Bank of India, awaiting the outcome of a controversial enquiry.This follows the Swiss groups decision last year to abandon a plan to buy the mutual fund operations of Standard Chartered for $129.2 million because it failed to get regulatory approval from the central bank.The Reserve Bank says that while theres approval in principal for a licence for UBS, it has been put on hold pending an investigation This is understood to involve international payments involving a wealthy Indian national, with the countrys Finance Ministry investigating an alleged $8 billion money laundering racket, according to Mumbai reports.In response, a UBS spokesperson stressed that the bank co-operates with regulators in any country in which it operates.UBS already has a broking and investment banking operation in India, but the fresh regulatory go-slow could still leave it trailing its competitors which are expanding actively into India, particularly in the wealth sector.Rival Credit Suisse is now launching its own wealth management business in India, as it has obtained regulatory approval
Veteran Swiss private banker decides to make TV blockbuster
Charles de Boissezon, chief executive of Banque Piguet & Cie has decided to retire from the Geneva bank in order to make a television series based on the history of China. The banker denied that his decision was linked to the current crisis, saying I am 59 and thought that, if I wanted to do something different, now had to be the time.
Lehman Bros deal accelerates Barclays
Barclays acquisition of Lehman Brothers Private Investment Management unit has moved its wealth management business strategy forward five years, according to CEO Thomas L Kalaris. In an interview with Private Banker International, Kalaris said Barclays had been planning to set up a New York office from scratch in 2009 to strengthen its US franchise until the Lehman assets became available He said the opportunity to pick up significant net new assets, 1,000 staff and 12 offices in the US and South America, were too good to miss.
New boys break into the wealth magic circle
Barclays enters the ranks of the top 10 wealth heavyweights for the first time, leaping to ninth position last year from 16th in 2006 (see table).The British bank increased its assets under management (AuM) total by 14 percent in 2007, calculated in local currency terms, to amass a grand total of nearly $265 billion of client funds, according to the ranking calculated by Private Asset Management (PAM), the wealth researchers.HSBC also performed strongly, gaining 26 percent more in assets to $421 billion and so improving to seventh from ninth place.Chris Meares, head of HSBC Private Banking has declared that HSBC is in a strong position compared to some of its rivals in Europe and the US which have been severely hit by the subprime mortgage crisis and credit crunch.Among other strong performers, Deutsche Bank entered the top 10, jumping to eighth from 11th place in 2006 with its $285.7 billion of client funds