Duncan Lawrie boss Matthew Parden is on the hunt for new clients at the lower end of the private banking scale, as larger banks ditch them to focus on their richer clients.
The managing director at the private bank said: "We have seen a few of the larger banks pull out of servicing a significant proportion of the high net worth market; Barclays is one example in a long line of clearing banks that have been pulling back from this space
"Now that the larger banks are focusing on ultra-high net worth individuals it is an underserviced space, so we see great opportunity there."
Duncan Lawrie is attracting clients with liquid assets of £250,000 plus, and sees an opportunity for servicing clients within the range of wealth from £500,000 – £1million, said Parden.
Barclays recently announced 450 job cuts in the UK, as part of plans to cut its wealth management services in approximately 130 countries and cull its full service for clients with less than £500,000 ($797,600) to invest. Barclays’ private bankers are expected to focus on its wealthiest customers in a bid to slash costs and boost profitability.
A number of banks are shedding clients at the lower end of the wealth range, including Credit Suisse. The Swiss bank is reportedly going to stop offering its services to clients in particular western regions where the volumes are too low to ensure profitability.
But it is boosting its offering to ultra high net worth individuals – this year it bought Morgan Stanley’s private-client wealth management business in Europe, the Middle East and Africa which reportedly includes about 60 clients managers that serve the very wealthy.