Paul Hewitt, head of client strategy for Christie’s in Europe, the Middle East, Russia, and India, reflects on the similarities between the art market and private banking industries
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The increasing number of ultra high net worth individuals (UHNWIs) living and working in a highly interconnected global market, operating with real time information is just one of the opportunities client relationship management teams in private banking have in common with client teams in the fine art auction business. However, there are also some important differences.
Since the financial crisis of late 2008, art has become one of a number of alternative assets of choice for passion investors. Over and above the security of holding a tangible asset, owning a unique and rare work of art has the added benefit of giving pleasure and access to circles of other like-minded patrons. The increase in values for selected 20th century arts such a Picasso, Warhol and Bacon has been eye watering and grabbed the headlines, however, their owners’ reluctance to sell suggests that, more than ever, enjoyment trumps pure financial return.
Christie’s, like many of the leading private banks, has had to adjust both our style of business and the ways we organise sales to satisfy the demands of new collectors from Mainland China, Asia, Russia, and The Gulf. It is no longer about the next transaction, rather building a trusted advisor relationship with a team of specialists who work with clients to identify their long term collecting goals.
Auction sales are now more tightly curated. For instance, Christie’s held an innovative auction entitled Looking Forward to The Past in New York in May this year where the very best works of the 20th century were offered. The subsequent headlines for the highest price for a single work were among the stellar results of a $1.726 billion week at Christie’s.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn addition to our auction sales, art works are increasingly being bought and sold by ‘private sale’ brokered by Christie’s. The increasing interest in private sales has provided another solution for those wishing to liquidate assets quickly or for clients seeking a bespoke service. Given Christie’s global reach alongside a magic combination of quality and rarity, this can lead to speedy transactions.
Art Fairs, such as Art Basel supported by UBS, Frieze’s partnership with Deutsche Bank and Masterpiece’s alliance with Royal Bank of Canada have become popular sponsorship opportunities for private banks and a further illustration of the strong crossover of clients between the two industries.
Similar to the private banking industry, Christie’s is obliged to ask clients to comply with rigorous anti-money laundering laws when registering for the first time. As part of our duty of care to vendors, we are also obliged to ask for proof of credit worthiness. A referral or reference from a private banker can be very useful here.
The impact of digitalisation and the opportunities offered by the internet are another area of common interest. Clients are able to manage their collections with sophisticated software systems such as Collectrium; browse the Christie’s website for information about forthcoming sales; or indeed register to bid. The internet has also opened up new opportunities, allowing some clients to participate in select Christie’s auctions held online.
Christie’s, The Art People, is proud of its 250 years of leading and innovating in the art world. The values that inspired our founder, James Christie, when he started his business in Pall Mall in 1766, are as true today as they were then: put your clients long term interests first and give them quality advice.
Paul Hewitt, head of client strategy for Christie’s in Europe, the Middle East, Russia, and India
