PricewaterhouseCoopers’ (PwC) biennial Global Private
Banking and Wealth Management Survey released last month has
sparked industry debate about which financial centre will be top in
the next three to five years.
The survey of 275 institutions in
67 countries asked what would be the top-five most successful
international financial centres in the next two years time, given
the increased regulatory pressures on offshore centres.
Surprisingly, respondents said Singapore would overtake Switzerland
to be the most successful international financial centre by 2013
(see table, below). In the process it overtook the
industry’s traditional strongholds, London and Switzerland. Hong
Kong also moved above London.
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Justin Ong, Asia-Pacific leader for
PwC global private banking and wealth management practice, who
helped write PwC’s survey, said participants thought the centre of
gravity for wealth management was moving, reflecting that
established centres are under pressure from emerging markets.
“In response to increased
regulatory pressures, our respondents see Switzerland, London and,
to a lesser extent, New York, all being challenged by the rise of
Singapore and Hong Kong in the coming two years,” said Ong.
In response to PwC’s survey,
PBI conducted its own month-long online poll asking what
would be the world’s most important private banking centre in five
years time.
Initially the findings mirrored
those in the PwC report, suggesting Singapore would overtake London
and Switzerland as the top wealth management centres. But in the
past two weeks the results have evened out (see pie chart,
above).
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By GlobalDataHong Kong and Switzerland take top
position on 27% each, while Singapore and London share second spot.
New York makes up last position in both the PwC and PBI
rankings.
PwC’s findings have also been
questioned by industry leaders. Commenting on the survey late last
month, Renato de Guzman, chief executive of Bank of Singapore, was
skeptical.
“I do not know if Singapore will be
able to overtake Switzerland in two years,” he said.
Yves Mirabaud from Geneva’s
Mirabaud Bank shared a similar view. In an interview with
PBI (see Swiss banking’s 21st century
evolution), he acknowledged that there
were a lot of regulatory pressures on Switzerland, and Asia was a
hub for wealth creation.
“Switzerland has a lot of tools to
play with to convince clients that the quality of services is an
important factor,” said Mirabaud.
Traditional centres will always have a part to play but the
shift eastwards is clear.
