Global Private Banking Awards 2013: Winners’ Profiles – National Winners

Best Private Bank in the US         
Best Private Bank for Innovation
Northern Trust

The types of innovations introduced by Northern Trust clearly testify to the key role technology and digital communication have acquired in private banking.

Last year the US bank rolled out its goals-based-investing approach across the country, powered by proprietary software, and delivered its client portal, Passport Mobile, to the Apple and Android app stores.

“What resonates with our clients is that they know we understand them,” says Jana Schreuder, president of wealth management at Northern Trust. Clients have responded “enthusiastically” to innovations such as goals-driven-investing and Passport Mobile, she explains.

 “The goals-driven-investing approach gives clarity to clients through a collaborative experience that improves confidence in reaching financial objectives and ties a specific, dynamic asset allocation to each goal.” And this close alignment of priorities and investments can help investors avoid some common mistakes, such as trying to time the market.

The bank’s mobile smartphone application allows clients to perform transactions and access information while providing easy access to the bank’s thought leadership via social media.

According to Northern Trust’s most recent client survey, 84 per cent of clients prefer digital communication to paper, compared to 42 per cent four years earlier. “In response to these preferences, we have shifted a great deal of our outreach efforts to electronic, digital and social channels,” states Ms Schreuder. Over the past three years, Northern Trust allocated more than half of its technology capital to further enhance its digital channels.

The US Bank also has a social media presence on Twitter, LinkedIn and YouTube and is actively using these channels to share content from its subject matter experts. Client-facing social media efforts – via Twitter and LinkedIn – will soon be integrated into the bank’s mobile applications. An iPad app, Wealth Path, allows clients to access content tailored to their goals.

These tools, along with the bank’s integrated wealth management approach, led to record results for 2012, with assets under management growing 14 per cent from the previous year to $198bn. ET

Best Private Bank in Brazil
BTG Pactual

Over the two years to the end of 2012, BTG Pactual doubled assets under management to BRL62.5bn (€21.2) through a combination of organic growth in Brazil and an impressive acquisition campaign in Latin America.

Last year, it bought Chile’s leading investment bank/brokerage house Celfin Capital, as well as Bolsa y Renta, one of Colombia’s top three brokerage houses, adding $8bn (€5.8bn) in private client assets bringing total AUM to BRL66.7bn today.

“These acquisitions were important milestones in the process to become a leading Latam wealth management firm,” says Rogerio Pessoa, head of wealth management.

In addition to several Latin financial hubs – in São Paulo, Santiago, Lima, Bogota and Medellin, Mexico – over the past four years BTG Pactual has built a strong international presence too with offices in New York, London and Hong Kong, and, from next year, Luxembourg. 

A private partnership, BTG Pactual offers clients co-investment opportunities with partners in a variety of alternative investments including hedge funds, private equity funds and club deals, in Latam, Europe and even Africa.

Cross selling is key, and investment and merchant banking were a strong source of client referrals for the wealth management business, especially in recent years, when both capital markets and M&A activities were buoyant, says Mr Pessoa.

“Last year, although capital markets transactions were very limited given the general performance of the economy and stockmarket in Brazil, we were able to benefit substantially from M&A deals coordinated by the investment banking division and from proprietary acquisitions made by our merchant banking/private equity arms.”

In Brazil the main growth opportunity lies in converting the many high net worth individuals (HNWIs) today served by retail banking into private banking clients. “When real interest rates were very high, these clients were happy with traditional money market type products but in the current market situation, they must look for more sophisticated advisory and a more personalised level of service.”

In Chile and Colombia, clients will have access to more booking centres, a wider range of proprietary and third party products as well as co-investment opportunities and cross-selling initiatives. From 2014 the firm will be able to offer credit-related products as the entities become local banks.

BTG Pactual, which operates on an open architecture basis, last year significantly enhanced its product offering across asset classes. “We spent a lot of time educating clients regarding the new norm of low real interest rates in Brazil and we have seen a noticeable shift from fixed income portfolios to hedge funds and equities. The same is true with offshore allocation. This is a growing trend, but we still have a long way to go.” ET

Best Private Bank in China
China Merchants Bank

Numbers of both clients and relationship managers are rising fast at China Merchants Bank (CMB), based in the booming Southern city of Shenzen. CMB boasts more than 22,000 private clients, serviced by more than 340 relationship managers across 30 private banking centres, where customers are told “your family’s long-term prosperity is our humble duty”.

An advanced back office compliance system ensures that each product introduced by these RMs to private clients is ethically and legally sold, with intensive training for bankers, hired from both China and increasingly Taiwan.

Recently, the bank is doing its best to elevate its private banking brand with luxury themed events particularly aimed at women. “We need to look at who controls the money flows,” says CMB’s deputy chairman and head of clients, Ding Wei. “Even though men own the money, a lot of the decisions come from their spouses. So a lot of our communication goes through the female partner.”

Clients currently hold assets of around $40bn (€30bn), with most growth coming from the economically developed regions of the Yangtze River Delta, Pearl River Delta and Bohai Rim.

While CMB has been the first and leading mover in the private client market, it is clear others are fast catching up, with Mr Ding fearing ICBC more than others. “They are such a large bank and number one in assets,” he says. “But in private banking, we can do better than them.”

A key inflection point for the industry is likely to occur in 2014, with a loosening of regulations around financial products and foreign capital flows, which should allow a much greater range of financial products to be sold. With an excellent alternatives platform, allowing access to hedge funds managed by Hong Kong-based groups, CMB is probably better placed than most to exploit these expected changes. YB

Best Private Bank in Russia
Credit Suisse

After opening the Moscow office in 2003, Credit Suisse has continued growing its business, and since 2006 it has established full onshore private banking services in the Russian capital and a new office in St Petersburg.

“Credit Suisse has been present in Russia for 20 years with uninterrupted operations even during several times of financial distress in the country,” states Michael Knoll, head of private banking Russia, addressing critics who claim the bank has wavered in its engagement with the country.

The Credit Suisse ‘one bank’ model offers Russian clients, who are mainly entrepreneurs, expertise and capabilities of its private banking and investment banking businesses, tailor-made ultra-high-net worth solutions and a global specialist network. The bank’s multi-shore approach allows clients to manage their assets in many financial centres worldwide, with the assistance of specialised Russian speaking relationship managers.

“Our continuous efforts to deliver all the benefits of our integrated bank to clients and offer them the multi–shore capabilities they require has proved to be one of the best value propositions in the industry,” says Mr Knoll. “We continue to be fully committed to our clients and Russia as a whole. Furthermore, we are committed to Russia as a key growth market.”

In 2012 the bank further built its franchise by investing in people’s training, hiring additional professionals to cover other large cities and improving its offering.

In the attractive Russian wealth market, opportunities in the medium term are found in clients’ increasing need to monetise business assets as well as transfer first generation wealth to the succeeding generation. “Clients will require a good deal of execution capabilities, from mid- to large-cap transactions as well as strong wealth planning expertise,” says Mr Knoll. “Our approach to wealth planning takes these specific needs into account, particularly through our specialist wealth management teams, comprised of investment consultants and wealth planners.”

Through its corporate bank in Switzerland, the bank provides ship financing which is unique in the Russian market. The firm also allows Russian investors to participate in the burgeoning trade developing between Russia and Asia via direct and indirect investments in private equity, real estate and Asian securities. In 2013, Credit Suisse set up a dedicated oil and gas private banking team to further specialize in one of the most important wealth generating sectors of the Russian economy.

Globally, last year Credit Suisse attracted SFr19bn (€15.4bn) in net new assets from wealth management clients, bringing total assets under management to SFr798.5bn. ET

Best Private Bank in Hong Kong
HSBC Private Bank

The growing wealth of Chinese entrepreneurs presents a big opportunity for the private banking market. Hong Kong, on the doorstep of mainland China, is an important offshore centre for private banking because of its strengths, including well-developed legal, accounting and regulatory systems, large numbers of multilingual professionals, robust equity and FX markets and its unique advantage as an offshore renminbi centre. Despite pulling back from other markets globally, HSBC Private Bank is proud of its heritage in the territory since 1865 and does not see Hong Kong in isolation but – like its clients – sees it in the context of the Greater China opportunity.

A number of significant developments have recently been made available to clients including tailor-made credit terms and custody offerings with segregated accounts, securities borrowing and lending for clients out of Hong Kong and Singapore, and a derivatives platform that has attracted a high volume of mandates for interest rate hedging.

A special consultation unit for UHNW clients who operate a business serves their corporate finance needs, including capital raising, divestments and M&A. HSBC Private Bank’s corporate finance capability increasingly helps local companies access international capital markets for debut debt capital mandate issues.

“Our philosophy is to engage and build trust not just with our clients but with their whole family, providing a deeper level of service,” says Peter Boyles, CEO HSBC Private Bank. “Our wealth and succession planning, philanthropy and family governance services offer a key point of differentiation as there are real concerns among Hong Kong clients about the transfer of their wealth to the next generation,” he explains.

“HSBC Private Bank’s ability to connect local companies with the group’s corporate finance capabilities has helped many clients access international capital markets for debut debt capital mandate issues to obtain financing.”

HSBC Private Bank’s China Team in Hong Kong has referred bond issues worth more than $1.8bn (€1.3bn) in the first half of 2013 for private bank clients with issue sizes ranging from $200m to $500m.  CJ

Su Shan Tan DBS

Best Private Bank in Singapore
DBS Bank

DBS Bank, whose private client assets surged from S$47bn (€28bn) to S$56bn during 2012, along with a remarkable doubling of operating profits, has launched a new segmentation exercise for its high net worth clients.

Those wanting to buy stocks and funds on an advisory basis are directed to the DBS Treasures platform while clients looking for customised solutions and discretionary portfolios, including access to structured products, private equity and hedge funds, are directed to the DBS Private Banking service.

Improving service across the board for these clients has been something of an obsession for overall wealth management boss Su Shan Tan, who also runs the consumer banking operation at DBS, which markets itself as “Asia’s safest bank,” being partially owned by Temasek, the investment agency of Singapore’s government.

Relationship managers – many of whom were recently dispatched on a customer care course to Changi Airport, together with cabin crew at Singapore Airlines, in order to boost service levels – are told to take the ‘Red’ test, which judges them for being respectful, easy to work with and dependable. This is one of the few banks in the region with such a public statement of intent.

Ms Tan has also been busy doing the rounds of other Asian banks, particularly in Korea, to help improve the delivery of products and services to clients through internet channels, with the smartphone being the delivery mode of choice for most private clients.

While reasonably happy with the bank’s improving reputation in her home country of Singapore, Ms Tan would dearly love to grow the bank’s imprint in neighbouring Asean countries of Malaysia and Indonesia. DBS was recently involved in the failed purchase of a local bank in Jakarta, although some analysts believe Ms Tan’s bank had a lucky escape and that other better opportunities will surface. For DBS, the new private banking battleground is likely to shift from Singapore to neighbouring South East Asia, China and beyond. YB

Best Private Bank in Malaysia
CIMB Private Banking

The private banking arm of CIMB, started up from scratch by CEO Carolyn Leng 12 years ago, now has offices in six Malaysian cities. While critics of the government’s economic policy claim the business atmosphere in Kuala Lumpur and regional cities is not conducive to large-scale entrepreneurship, Ms Leng argues just the opposite.

Much of the growth of CIMB’s private banking franchise, now managing more than $4bn (€2.9bn), has come from regional entrepreneurs who have millions to invest, but keep a low profile and very much slip under the radar of the country’s business press. These business people have contributed to a steady net new money annual inflow of around $400m, although profits are slightly down.

This could be down to increasing costs, integrating acquisitions, which have given the bank a foothold in both Singapore and Thailand to organise cross border investments and business financing solutions. These include lending and overseas mortgages to help finance property purchases in Singapore and Australia. Ms Leng’s investment team tends to focus on preservation of wealth and institutional style asset allocation, while helping clients to unlock liquidity from business or property assets, in order to help build up further investments.

“Clients no longer just view us as an onshore domestic manager, but a gateway to the broader Asean region,” says Ms Leng, well aware of the splash which larger competitor Maybank has made in neighbouring Singapore. Whereas CIMB has had the stronger private banking franchise, it is now keen to make up some ground against Maybank in Islamic investments, where Malaysian banks are experiencing increasing interest from the Middle East. YB

Best Private Bank in Indonesia
Bank Mandiri Wealth Management

Mandiri Wealth Management Group is now one of the fastest-growing priority banking services in Indonesia, serving more than 55,000 customers and with more than $12bn (€8.8bn) in  assets under management. Mandiri Prioritas has the widest priority banking network in Indonesia, with 50 priority outlet offices across the region.

Clients’ assets grew approximately 30 per cent in 2010-2012 aligned with an increase in client facing staff. The wealth manager’s strategy for growth is based on increased product sales, and attracting lower income customers.

Products range from savings, current accounts and deposits to investment funds, provided by seven asset managers in Indonesia with a total of more than 40 mutual fund products to offer. One of the fast-growing socially responsible funds is provided by bank subsidiary Mandiri Investa Keluarga, an open ended mutual fund with a charitable giving option taken from its return.

In the last year it has also put a lot of effort into its digital communications, such as an SMS Blast to registered customers providing a market outlook, currency rates and products updates.

The key driver for growth has been economic and market conditions in Indonesia and their influence on customers’ businesses. As most customers are business people, Mandiri is keen to harness this through appropriate product selection, and has also adopted a focused approach to customers by segmenting them into three cohorts: IDR1–3bn (€65,000-€195,000bn); IDR 3–20 bn; and IDR 20bn  or above. CJ

Hyung Il Lee, Hana Bank

Best Private Bank in Korea
Hana Bank

Hana Bank’s ability to develop investment products to meet client needs and active portfolio management were the main drivers of AUM growth in 2012, according to Hyung-Il Lee, head of private banking.

Last year, assets from HNWIs – defined as those clients having more than KRW500m (€340,000) with the Korean bank – increased by around 10 per cent to KRW26.2bn, versus the industry average growth rate of about 4 per cent for Korean HNWIs, according to Hana’s analysis.

“Hana Bank’s product offering and the professional service delivered by our talented employees have won the hearts of our clients and contributed to acquire new clients,” says Mr Lee.

The bank’s product strategy focused in particular on international high yield bond funds, such as global high yield and emerging market debt, and multi-asset income funds. In the equity space, opportunities were found in the US, China, and other regions of “relatively healthy growth”.

The risk management process was significantly improved and manager selection due diligence was strengthened.

Channels for internal communication were enhanced through a visual communication system in branches and intranet technology. To interact with clients, the bank uses a wide range of online channels and social networks and has recently revamped its mobile private banking app by adding new content and features. A real-time overseas remittance service was introduced through mobile banking to meet the needs of HNWIs with children studying abroad.

One of the main contributors to client retention is the wide range of lifestyle services the bank offers to clients and their families with the aim of serving them from “cradle to grave”. The Korean bank has increased its efforts to serve the elderly by making significant investments: it launched a new brand for retirement planning, opened a professional advisory centre offering consulting services in a variety of areas, including asset transfer to the next generation and rolled out investment products suited to senior clients. Hana also trains its private bankers so they can all obtain a ‘registered financial gerontologist’ certificate.

 “Our efforts have significantly increased the satisfaction levels among elderly clients, which has resulted in an increase in assets,” says Mr Lee.

Global expansion accelerated in 2012. Private bankers were seconded to Hana Bank’s branches in China and Indonesia, where the bank has recently opened a private banking centre. In Hong Kong, Hana is looking to offer private banking services in collaboration with KEB, the Korean bank acquired in 2011 which has a significant global network.

Hana also gained a foothold in the US market through the acquisition of BNB Bank, with the aim of targeting affluent expats. ET

Best Private Bank in Taiwan
Taipei Fubon Bank

Taipei Fubon Bank, part of the Fubon Financial group, was the first financial services institution in Taiwan to offer private banking and now has NT$204bn (€5bn) in assets under management. Net new money in 2012 totaled NT$13.1bn as the bank continues to expand its private banking business. New hires have seen the private banking team expand considerably while the marketing budget targeting HNWIs was also boosted in an attempt to forge closer relationships with clients.

The bank reports how a reduction of estate and gift taxes from a maximum of 50 per cent down to 10 per cent has sparked a return of funds from overseas, while the low interest rate environment has prompted high net worth clients to seek investment products with higher returns. Taipei Fubon is expecting to offer more renminbi-denominated products in the future, taking advantage of growing commercial exchanges within Greater China. Fubon Financial claims to offer the most complete financial services network of any Taiwanese financial operation in the region, and as it further extends its presence in China, the private banking services will draw on its parent group’s resources to offer customers the convenience of a one-stop banking
experience.

Fubon’s private banking services were originally operated independently through a separate channel rather than through branches. An internal survey found, however, that nearly 50 per cent of Fubon’s high-wealth clients were still in the habit of banking at branches, and this has prompted a change in business model.

All of Taipei Fubon Bank’s 127 domestic branches, as well as its four flagship VIP centres, now provide private banking services, enabling its HNW clients to enjoy VIP services at their local branches. ES

Best Private Bank in Thailand
Kasikornbank Group Private Banking

Launched in 2006, Kasikornbank’s wealth management business has grown by double digits every year, and currently it claims to have 33.9 per cent of the HNW segment. In 2012 its upcountry strategy to acquire clients paid off handsomely, boosting AUM by 18 per cent. The institution says it is currently the only
Thai bank to have teams servicing the provincial areas, and it plans to expand this aggressively over the next year.

According to a survey by Nielsen, Kasikornbank has the best digital banking solutions in Thailand with 4.7m accessing its online and mobile banking services. Clients who are interested can receive SMS alerts from the research team on major market developments.

Its banking channel allows clients to review their investment in real-time as well make transactions online for most of the bank’s products. Clients can also attend  K Alpha research investment seminars where external experts discuss the outlook, which are particularly well attended during bouts of market turbulence, when investment direction is needed quickly.

In 2012, the bank launched its first TV advertising campaign for private banking clients, which described its core values as “passing forward the wisdom, instil fighter’s spirit, creativity and integrity to the next generation”.

It is the first private bank in Thailand to offer selected products under open architecture, and says this could be the catalyst  to  taking market share from independent non-bank fund houses. The platform will be used to launch sophisticated structured products, both on and offshore, to complement its  product portfolio.

For clients with a minimum AUM of $5m, Kasikorn has arranged a raft of appealing privileges, such as a limousine service to and from Suwannabumi airport, fast track check-in and ‘meet and greet’ at many of the world’s airports, and medical services from Thailand’s leading hospitals. Clients also receive the ‘Wisdom’ credit card, which offers a free annual medical check-up, safe deposit box, and car wash services at Bangkok’s top shopping centres.

“Our dedication to provide comprehensive investment advisory services to our valued clients have brought about our strong reputation in Thailand’s fast-growing and increasingly sophisticated private banking sector,” says Jirawat Supornpaibul, private banking business head, Kasikornbank.

“Synergy within KBank and K Companies and the bank’s nationwide branch network will accommodate our high quality services in the years to come,” he adds. CJ

Best Private Bank in Turkey
Garanti Masters Private Banking

Garanti Masters Private Banking claims to be the first private bank to offer a wealth management approach in the tradition of its Western European peers in Turkey, a country with a growing population of more than 75m and an average age of 30, which creates great potential and new prospects for the business.

One of Garanti Masters Private Baking’s strengths is product innovation.

In Turkey sophisticated financial tools are in their early phases, but although most client assets are held as deposits, a small portion of their portfolios is in advanced alternatives, including a wide range of structured products.

Other examples of pioneering products are capital guaranteed funds, which, while guaranteeing the principal protection, provide clients with the opportunity to gain the additional return of an index. For example the Innovative Companies Fund based on the Citi Index on Innovation, reflecting the performance of 15 global companies in the technology, consumer products and communication sectors. More than 800 clients have taken advantage of this product, which has a maturity of one year and ended the investment term with a return of 18 per cent. Another example is its USD/TL Range Accrual Masters TL Structured Deposit.

“We have a product development team solely dedicated to consulting the sales team and taking into consideration our clients’ expectations,” says Onur Genc,  executive vice president  for retail and private banking.

“They closely follow the markets and design products based on expectations with the highest return potential. Besides offering a wide range of structured products the team also designs investment solutions for our individual clients. Our product offering pioneered the investment environment in Turkey. To attract new customers we offered our clients many timely products. Our recommendations process is meticulously adapted to fluctuating market conditions as well.” CJ

Best Private Bank in the United Arab Emirates
National Bank of Abu Dhabi

Given the turmoil that has engulfed global markets and financial institutions in particular in recent years, the fact that the National Bank of Abu Dhabi (NBAD) has gained a reputation for safety in the industry is a huge plus point for its high net wealth customers, believes Ashraf Mazahreh, NBAD’s head of private banking.

He claims delivering an integrated value proposition to be at the heart of the business, with an aim of providing a one-stop-shop solution for private clients both regionally and internationally. Mr Mazahreh highlights the benefits of its location for the bank’s ambitious global expansion strategy.

“The UAE and Abu Dhabi sit in a unique, strong and coveted position in the middle of an emerging important super region ranging from Western Africa to East Asia,” he explains. 

NDAD offers an open architecture investment approach as part of its tailor-made investment and wealth structuring services through a range of booking centres. The onshore operation enables offerings in the UAE and Mena region, while its Geneva-based offshore office enables its private clients to access a range of international opportunities.

“We are able to cater to our clients’ specific requirements through our wholly-owned subsidiary NBAD Private Bank (Suisse) SA,” says Mr Mazahreh. Succession planning is also offered through its Jersey-based trust company, including Sharia-compliant solutions.

Last year NBAD launched its ‘Velvet’ private banking service that exclusively targets wealthy and successful businesswomen. “This serves a dual purpose: responding to cultural and social needs, as well as facilitating the provision of banking and wealth management services to women, who are recognised as an important segment, controlling more than 22 per cent of the regions’ total wealth in 2009,”  he explains.

The bank is also increasing its presence within the non-resident Indian market, and is developing a specialised team to service this group’s unique requirements. ES

Best Private Bank in Austria
Erste Private Banking

Established in 1993, Erste Private Banking in Austria leverages on Erste Bank’s long banking history. Since 2001 the institution has expanded its private banking activities into five more countries, namely the Czech Republic, Slovakia, Romania, Hungary and Croatia.

“Although our CEE Private Banking units are relatively ‘young’, Erste Bank’s 200 year history has helped us attract new clients,” says Wolfgang Traindl, head of private banking Austria. CEE clients seeking to invest ‘offshore’ can also benefit from special services offered by the private bank in Austria.

In 2012, Erste PB, which last year increased its assets under management by 17 per cent to €5.5bn, implemented discretionary portfolio mandates in all CEE countries, with the aim this year to centralise production and streamline product offering. “This group product approach will have not only a significant impact on production costs, but should also increase the quality of our products,” he says.

Today, discretionary portfolio management (DPM) represents around 20 per cent of the total assets under management, which the bank aims to increase to 35 per cent over the long term, with the remaining 65 per cent being in the advisory business. “A structured DPM process and investment disciplines are key ingredients for investment success,” states Mr Traindl. “Clients willing to delegate are best guided to sign up for discretionary mandates: portfolios are given seamless attention and bankers’ capacity is freed up.”

The private bank is developing a new pricing strategy, aiming to link the prices charged to the service provided more tightly.

New clients are acquired through referrals as well as through close cooperation with the retail network and corporate sales units. The highest growth in terms of volumes is expected in the UHNW segment and above, although the HNW segment will provide the highest growth in terms of number of clients.

When recruiting people, the bank’s focus is on international education and experience, believing that experience in private banking is as important as business etiquette and good language skills, to serve international clients and maintain a service-oriented attitude.

The Austrian bank offers a wide range of socially responsible investment products and sustainable funds and, through Erste Foundation established in 2003, it  also offers philanthropic services.  ET

Best Private Bank in Belgium
Best Private Bank in France
Best Private Bank for Socially Responsible Investing   
Best Private Bank for Philanthropy Services
BNP Paribas Wealth Management

BNP Paribas Wealth Management has long been building its proposition, taking advantage of a strong branch network across its native France, but the bank’s efforts are finally being recognised both at home and abroad with a string of awards in 2013.

The growth has been accelerated by a series of key mergers to boost assets held globally to €265bn. But 2012 also saw phenomenal €7.5bn net new money growth, more than double the previous year.

One key innovation has been the development of the ‘key client’ group, for those with more than €25m to invest, particularly trying to capture family office business growth from Europe and the Middle East. This involves  closer collaboration with corporate and investment banking and an increased focus on women clients and entrepreneurs.

Indeed in France, where BNP Paribas boasts client assets of €73bn, making it the leading wealth management institution, the bank has began to concentrate resources into its 61 so-called ‘Maisons des Entrepreneurs,’ its dedicated set up for small businesses, and part of a broader range of 230 private banking centres across France. French clients are serviced by 1200 private bankers, of which 370 are dedicated to the entrepreneurial segment.

Following the integration of Fortis Bank Belgium, BNP Paribas has also managed to secure a leading berth in the Belgian wealth management market, where clients benefit from more than 900 private bankers and investment experts. But the old Fortis system was somewhat streamlined, so that each private client now just has one key banker servicing them, rather than two under the old model.

Once the delivery mechanism was in place, the French bank then began to introduce an enhanced range of products to Belgian private clients, including private equity, real estate, credit and even vineyards.

Having acquired the BNL franchise in Italy back in 2006, the French bank was able to learn from its previous experience and apply the lessons to the Belgian market. Rather than totally eradicate the Fortis brand, it was decided to combine the two and offer clients services under the BNP Paribas Fortis Wealth Management banner.

“We need to be close to clients and show understanding, rather than just bring them a big brand which is not well-known everywhere,” confirms wealth management co-head Sofia Merlo.

Through the BNP Paribas model, private bankers can leverage on the IT systems designed for retail networks. This has been one of the few banks with a serious philanthropy offering, setting up a specialist advisory service in 2008, including the Fondation de l’Orangerie, which offers clients access to pre-selected charitable projects. YB

Best Private Bank in Germany 
Berenberg

Berenberg, which attracted €1bn net new money in 2012, bringing assets under management to €28.2bn, prides itself on its independence and on its approach of providing advice rather than products to clients. The Hamburg-headquartered bank now sees much of this growth coming from the branch offices, located in seven German cities, many of which were set up within the last 10 years. Berenberg also has a strong presence in London and Zurich.

“More than ever, it is essential for banks to align their business models with the needs of their clients,” says Tindaro Siragusano, head of private banking and asset management. “Our approach allows us to develop close attentive working relationships that are essential for our clients’ long-term success.”

Each of Berenberg’s 140 plus relationship managers looks after just 50 to 55 clients on average, while the bank strives to make its reporting channels as flexible and customisable as possible. Central to this is a shift towards a digital approach, communicating via its website and by email, and through the development of mobile apps, although the bank recognises that a diverse customer base means more traditional forms of communication still have an important role to play – the ratio is currently around 60 per cent digital to 40 per cent non-digital.

“Berenberg’s specialist teams have the experience and skills to meet the financial needs of a diverse range of clients,” adds Mr Siragusano. “We help families preserve and grow wealth for future generations using appropriate investment strategies, and enable businesses and organisations to solve complex financial challenges.”

The bank reports investors are searching for alternatives that can diversify portfolio returns away from the short-term volatility of equity and bond markets, and recommends physical assets such as real estate, forestry, farmland and fine art as suitable investments. ES

Best Private Bank in Italy
UniCredit Private Banking

UniCredit Private Banking (UPB), Italy’s largest wealth manager, has recorded continual revenue growth and worked hard to evolve its service model, product innovation and staff management.

During 2012, it streamlined its organisation and simplified the network structure, reducing the number of managerial levels and increasing integration with commercial banking, which as well as reducing costs, is expected to produce wider benefits, such as a more effective service model. The bank has also led in product innovation taking the view that it is increasingly critical to find innovative financial solutions for customers’ real-life needs because as yet the public do not quite trust the banking community. It was the first European private bank to develop a flat fee account and last year it launched UniCredit Green, a segregated management account invested in iShares ETFs with partial capital protection.

With a 2013 cost income ratio below 50 per cent, UPB has demonstrated its capability to deliver best in class advisory services, claims Dario Prunotto, head of private banking. “We particularly focus on entrepreneurs and family business owners and in a very efficient manner, leveraging on more
than 800 private bankers and 100 specialists,” he says.

UPB works with a small selection of top global investment management houses to provide clients with a range of “best-in-class” financial products covering all asset classes, says Mr Prunotto. “UniCredit’s asset management preferred partners undergo a robust, integrated and systematic selection and monitoring process across Europe via a process certified by US adviser Mercer,” he claims.

UPB’s bankers can now use a specific app, called i-Library, on their iPads to easily build multimedia presentations, such as videos or updated market views, to share with clients, explains Mr Prunotto. CJ

Best Private Bank in Luxembourg
ING Private Banking

Having an international client base, mainly entrepreneurial, represents both an opportunity and a challenge for the private banking business in Luxembourg.

“The challenge for Luxemburg, and for our private bank, is to transform and to upgrade the client-base, and to diversify it over more extensive markets than the traditional ones of today,” states Dirk Adriaenssens, general manager retail and private banking at ING Luxembourg.

The strategy should be implemented “by capitalising on the country’s structuring capacity and by offering state of the art solutions to more complex and internationally oriented wealth”.

ING Private Banking Luxembourg has indeed been working on expanding its activities beyond traditional borders, reaching into new markets such as Russia, Romania, Ukraine and Turkey.

Also, the private bank has developed specific products and services to address clients’ cross-border needs, for example offering mortgage-based financing for secondary residences in the Côte d’Azur.

Part of a fully integrated universal bank, ING Private Banking Luxembourg offers a variety of services including portfolio management, fund management, estate planning, yacht and property financing and insurance solutions.

“A key differentiating factor is that our people are very well-trained, team players and customer-focused,” says Mr Adriaenssens.

“We have a tradition of being very competent in estate planning since our people have outstanding academic track records and more than enough emotional intelligence to understand the real needs of our clients. On top of that we have an outstanding network of external professionals.”

ING Luxembourg is especially active in creating and developing synergies within the group, with corporate banking in particular but also with other ING entities in Europe. It also caters to specific segments of clients, such as UHNWIs and sportspeople.

Believing in the value of combining pleasure and business, ING Private Banking in Luxembourg (and Belgium) sponsor numerous sporting events, such as golf tournaments, sailing or tennis competitions, classic car rallies and art exhibitions.

“The sporting events we choose are very much related to our values, such as team play, passion for perfection and fair play,” explains Mr Adriaenssens.

At global level, ING Private Banking managed around €44bn at the end of last year, an increase of 12 per cent year on year. ET

Best Private Bank in Sweden  
Best Private Bank in the Nordics
SEB Private Banking

Since SEB’s foundation by Sweden’s Wallenberg family in 1856, the bank has offered financial services to high net worth individuals and private banking business has always been a priority. SEB focuses on following Nordic clients with a global footprint and is present in 11 countries including hubs in Luxembourg, Geneva, Singapore and London. One thing that differentiates it from its peers is international reach combined with native culture and language for Scandinavians abroad.

“SEB Private Banking has a width and depth in its offering that is hard to match by any competitor catering to Nordic Clients,” claims Martin G€rtner, global head of Private Banking within SEB. “In addition to financial advice we offer for example a state-of-the art ‘internal law firm’ with family and tax law, a wealth structuring unit, foundation services and easy access to lending and financing.”

In response to changes in client behaviour, moving away from equities, SEB has developed a variety of portfolio strategies and uses combinations of different manager styles as well as different asset classes to help position clients on different points on the efficient frontier based on their risk appetite.

The bank tends to avoid traditional “low risk” markets and challenges the old-style norm of risk, favouring an international mindset and assets with real potential to create wealth. It has also used the last 12 months to explore financial innovations such as structured products in private equity, FX and infrastructure as a way to gain interesting market exposure that is not easily found through conventional funds.

“Our recent success include record high client satisfaction scores, a large inflow of new clients, good employee retention and lots of spontaneous applications from the staff of competitors not only in Sweden but for example London,” says Mr G€rtner. CJ

Best Private Bank in the Netherlands
ABN AMRO MeesPierson

Judged best bank in the Netherlands, ABN Amro Private Banking boosted client assets from $187bn (€137bn) to almost $210bn during 2012, with impressive net new money figures of $4bn, $3bn up on the previous year.

This is no small-scale operation, employing close to 1,000 relationship managers to service almost 100,00 private clients globally and including the Neuflize, Bethmann and MeesPierson franchises, all dating back several centuries.

There is certainly a new found confidence flowing through the bank, with a
palpable feeling of imminent re-emergence as a Europe-wide wealth management player, poised to take over from other fading franchises.

You would certainly never have bet on them during the crisis years, when a prolonged purchase and break-up process instigated by a consortium comprising RBS, Santander and Fortis eventually contributed to the latter’s demise.

The bank’s formula has relied on combining local brands with wider group solidity, segmentation around key client groups and innovative investment ideas around energy, commodities and transportation.

Investment policy has been led by strategic thinking chief investment officer Didier Duret, currently encouraging private clients to invest in manufacturing giants, particularly in nearby Germany and never afraid of making bold, contrarian asset allocation calls.

Group strategy is handled by CEO Jeroen Rijpkema, who while emphasising expansion in Asia, has also been defining and implementing an onshore strategy for European growth. This has concentrated on unfashionable asset homes of Netherlands, Germany and France.

The successful plan has involved booking assets from these onshore markets, well ahead of the Swiss banks who claim they want to implement this type of business model, but have been stuck in limbo, redefining their offers.  “Many Swiss banks are fighting like mad to get access to the type of markets which we have,” Mr Rijpkema once told PWM, in an apparent reference to the likes of Credit Suisse and UBS. YB

Best Private Bank in Denmark
Danske Bank

Danske Bank has been busy. In 2011, it launched the second generation of its discretionary managed accounts for more sophisticated customers offering greater customisation and a wider variety of products such as alternative assets, equity derivatives and tax-optimisation strategies. These accounts are conservatively managed creating an asymmetric risk-adjusted return profile.

Danske Bank is particularly proud of its customer reporting which provides an overview of the customer’s assets and liabilities across tax regimes and wrappers, with the option to include holdings with other banks, cost overviews and tax reporting. The reports are available online and on paper, and include asset allocation, time-weighted returns and benchmarking.

The bank’s in-house developed Wealth Planner tool is used to give clients a scenario analysis of their portfolios on an after-tax basis and encompasses the risks on both tangible assets, and intangible assets such as human capital. It has a specialised simulation tool, which extracts data across all customer custody accounts and tax wrappers, and can “look through” mutual funds, producing an overview of exposures at sector and regional level.

For self-directed customers, the bank has developed on-line packages with access to real-time prices from major stock exchanges, plus trade execution and research.

The private bank is now trying to internationalise its operating model, and targets have been put in place to restructure its distribution to increase efficiency.

“This shows we are moving in the right direction,” says Marlene Nørgaard, head of private banking Denmark.

“Our advisers’ competencies combined with a wide team of in-house experts and excellent tools, such as the Wealth Planner, enable us to give our customers a unique overview of their finances and an understanding of the consequences their choices may have in future. We embrace the fact that customers want tailored solutions that meet their needs. This is why we offer various set-ups with regard to investment preferences and have innovative concepts that suit customers wherever they may be in their life cycle.” CJ

Best Private Bank in Spain
BBVA Banca Privada

Winning the award for best private bank in Spain for the fourth year in a row, BBVA Banca Privada gained 13,072 customers in 2012, while net new money grew by €1.5bn to reach €39.4bn, despite the torrid times the national economy has endured.

“BBVA Banca Privada is currently in an excellent position to grow in Spain,” explains José Garcerán, responsible for private banking in Spain and Portugal. “Our solvency, the strength of our brand as well as our consistent model and our clear strategy give us a competitive advantage that will for sure help us gain market share.”

Interacting with clients is central to the bank’s business model. BBVA targets both the UHNW population and the upper affluent segment through a combination of dedicated private banking centres and private bankers in retail branches, allowing customers to choose where they want to receive services.

“Our strategy to arrive at our goals is based on proximity to our customers and on providing them with customized solutions that best fit their needs,” says Mr Garcerán, adding that the digital world is of increasing importance to the bank. Last year saw the launch of a new website which allows all types of customisable reports, the development of the online Family Wealth Community exclusively for private banking clients, and allowing customers to access portfolio information via their mobiles.

BBVA’s high net worth advisers are also encouraged to spend half of their time outside of the office, and have been provided with iPads to enable them to do their jobs with greater levels of mobility.

BBVA is responding to the current environment of historically low interest rates by offering products that offer higher risk-return ratios. These include a range of structured deposits which can provide returns independent of underlying assets, and developing a guaranteed product that allows allocations to equities without risking all of the invested assets. ES

Best Private Bank in Andorra
Crèdit Andorrà

Over the past few years, Crèdit Andorrà has gradually built a significant international presence and today operates in 10 countries in Europe and America, namely: Andorra, Spain, Switzerland, Luxembourg, the US, Mexico, Panama, Paraguay, Peru and Uruguay.

“Our international expansion has been built on our long, successful history in private banking in Andorra,” says Josep Peralba, CEO Crèdit Andorrà, explaining the firm’s growth strategy is based on the criteria of due diligence, prudence and sustainability.

The Andorran bank, which also offers asset management and insurance services, saw its private banking assets grow by 12 per cent to €11.3bn last year.

Banco Alcalá in Spain and Banque de Patrimoines Privés in Luxembourg, both acquired in 2011, contributed remarkably to the assets growth of the European private banking business, which managed more than €2.6bn in total assets at the end of 2012.

In the US, the acquisition of Miami-based Beta Capital Management at the end of 2011 made the bank the first Andorran financial institution to break into the US market as a licensed broker/dealer. Last year, the firm also consolidated and grew its presence in Latin America, acquiring firms in Peru and Paraguay and strengthening its position in Mexico.

“The Group’s international platform provides clients with access to international markets and therefore to the products that best suit their needs,” explains Mr Peralba.

“Crèdit Andorrà offers a huge range of investment options, multi-booking, providing flexibility in today’s complex and changing markets.”

In its home country, where the private bank claims to enjoy a 35 per cent market share, last year Crèdit Andorrà created a specialist unit to cater to large customers, and centralised private banking services. The international office was strengthened with the creation of dedicated business units focussed on opening new private banking markets in Russia, Eastern European countries and Africa.

The firm prides itself on operating on an open architecture basis and on providing a “boutique service approach to wealth management, offering tailor-made solutions and highly personalised services”.

In addition to enhancing its product offering through the launch of new funds, in 2012 the Andorran bank signed a strategic consultancy agreement with Gamco, a US firm known for its expertise in value-oriented equity investment. The Andorran institution also receives advice from Spanish investment management company Bestinver on euro-based equity investments. ET

Best Private Bank in the UK
Coutts

The UK’s Retail Distribution Review (RDR) has been high on Coutts’ agenda over the last year. The wealth manager launched its RDR proposition in November, a month before the wider industry, and says feedback has been positive.

“We launched our RDR-compliant proposition early, embracing the new regulation as we saw that as a bank-owned, advice-led business, Coutts had the potential to flourish in the new regulatory landscape,” says Michael Morley, chief executive of Coutts & Co.

“From the restructuring of the business, through to the creation of our wealth management advice service and extensive training programmes devised to empower our advisers to deliver this proposition, we have worked to ensure that the principles of RDR are embedded in Coutts’ culture and all facets of our relationship management processes,” he explains.

“The delivery of our new proposition has resulted in more intelligent relationships with clients, providing us with a clearer understanding of their needs, their attitudes to risk and their objectives.”

Last year, Coutts’ largest investment was technology platform Avaloq. The platform gives advisers a bird’s eye view of clients’ consolidated finances, looking at both sides on the balance sheet.

Another significant development over the last year has been Coutts’ decision to establish Jersey as the focus of its expanding International Trust business. Announced in June, the changes reinforced its confidence in the Crown Dependencies.

The wealth manager remains committed to its publicly stated objective of doubling client assets to £133bn (€157bn) by 2015, through strong growth and increased share of wallet. While retention is paramount, Coutts acquired more clients in 2012 than in 2011.

Industry watchers, while hugely complimentary of the bank’s restructure, growth plans and clean-up of compliance procedures, believe all of this is part of a plan to sell the bank soon. CJ

Best Private Bank in Ukraine
UkrSibbank BNP Paribas Group

UkrSibbank, under the majority ownership of the BNP Paribas group, which bought a final tranche of shares from previous owner Kharkiv-based businessman Oleksandr Yaroslavsky in 2010, is one of the rising brands in Ukraine’s fledgling private banking industry.

It currently boasts six private banking centres in the country’s major cities, staffed by 38 relationship managers, and expects client numbers, currently around 2000, to grow by more than 500 by the end of 2013.

The bank began developing its private banking model back in 2005, launching what it claims to be Ukraine’s first website in this sector in 2006, the same year it created waves in the market by starting to sell mutual funds to private clients. It also started providing regular information digests for clients in both email and magazine format, a practice it says has since been adopted by both Ukrainian and Russian private banks.

Other initiatives have included client loyalty programmes, offering privileges and discounts with ‘partner’ hotels, shops and restaurants and the creation of a private banking club. This idea of creating a club-type feel, allowing clients to think they are in a exclusive circle, meeting at venues such as golf clubs, has been central to the vision of private banking boss Oleksii Aleksandrov.

UkrSibbank segments its clients into ultra high net worth, with assets of more than $1m, high net worth individuals with funds of between $200,000 and $1m and what it terms ‘social clients’, bank customers with between $100,000 and $200,000 to invest.

While Ukrainian banks have struggled in an uncertain political and economic climate and in an atmosphere where the reputation and background of many leading business people is often called into question, UkrSibbank likes to emphasise the “application of European principles and approaches to monitoring clients’ reputation and compliance with the established principles of counteracting legalisation of illegally obtained funds”.

Ukrainian clients, says Mr Aleksandrov, are “born and raised in a stressed atmosphere,” so very little surprises them in terms of economic shocks. The biggest demand from them, he say, is for foreign currency deposits, the income of which is not taxed under Ukrainian law.

In addition to working with entrepreneurs, the bank has been forging links with their children, launching the ‘Young Bankers’ School’ for those who will one day inherit significant capital. YB

Best Private Bank in the Czech Republic
Best Private Bank in Slovakia
ČSOB Private Banking

ČSOB claims to be primarily differentiated from its competitors by its Global Portfolio Management system which helps portfolios to be viewed in terms of asset classes instead of ‘single products’, allowing a clearer picture of their volatility, diversification, protection and risk/return. This year the system has been upgraded with information to make the fees transparent, and web pages for clients to access investment information.

The investment advisory process has been improved and innovative products such as Private Portfolio of Funds and investment certificates have been used, while in commercial banking, much of the focus was directed towards arranging Lombard loans and buy-sell backs.

The bank says its strategic model portfolios have also been well received by clients – hitting the bull’s eye as they have become the most sought-after products by its customers.

The transfer of assets to the next generation has a particular context within the Czech Republic, as it is only now, 23 years after the dissolution, that a generation of successful entrepreneurs has reached the age when they need to find solutions for transfer of their assets to the next generation.

As of next year, new opportunities will emerge in this space as a new Civil Code takes effect in the country, which the bank plans to target. It has been active in the Czech Banking Association and currently chairs its Private Banking section with an aim of coordinating the stance of Czech private banking towards succession planning.

“We have the strongest branch network in the Czech Republic, the most stable team of employees, an investment advisory
customer service and employees and customers involved in charitable purposes,” says director of private banking Martin Kosobud.  CJ

Best Private Bank in Canada
RBC Wealth Management

RBC Wealth Management takes this award for the second consecutive year. The sixth largest wealth manager in the world, with client assets approaching $1tn (€730bn), it is a strongly differentiated private bank with coordinated wealth and asset management businesses providing a range of solutions including banking, credit, discretionary investment management, full-service advisory, estate and trust services and tax consultancy. This is attractive for its HNW clients, whose needs are varied, and who therefore benefit from this cross-business connectivity.

RBC WM claims to have an investment approach which is ‘solution-led’, rather than ‘product-led’, using an open architecture platform to select the most appropriate solutions for clients. It also has some ‘best-in-class’ capabilities in fixed income, natural resources and Canadian equities and is expanding its global capabilities, primarily through fixed income specialist BlueBay Asset Management, which brings in clients over 30 countries.

The wealth manager has a firm approach to client discovery, taking time to understand what is important to clients. In 2012, it conducted research to measure awareness of its brand, and says the knowledge of its wealth managers stands out. The firm strives for a collaborative culture and deep expertise in its people, and has enhanced its recruitment processes to ensure it hires 40 to 50 of the best wealth managers each year, who participate in an in-depth introduction to its culture, as client service begins with having the right people. Looking ahead, RBC WM has an eight-pronged strategy to improve client experience, such as increasing the sophistication of the global analytics, building out its digital capacity, and improving its integrated client reporting.

“Our expertise in business succession and ability to coordinate both personal and corporate wealth planning has positioned us as the firm of choice for business owners,” says David Agnew, head of RBC Wealth Management Canada. “We are committed to delivering quality customised advice, and we work together with our colleagues to bring clients the best of RBC, such as our market-leading capabilities in banking, commercial banking, insurance and capital markets.” CJ

Best Private Bank in Mexico
Banorte-IXE Banca Privada

Banorte-Ixe BancaPrivada was born in 2011 from the merger of the private banking activities of Mexico’s third largest bank Grupo Financiero Banorte, conducting mostly a mass-market business concentrated in the north of the country, with niche financial group IxeGrupo Financiero, catering to high-net-worth clients primarily in the metropolitan Mexico City.

“Client relationships are being strengthened and developed through a platform with national and global reach,” says Luis Pietrini, head of private bank and wealth management. “We capitalised on IXE’s brand recognition, asset management and investment process, but above all on its strong service culture, which has been key to strengthen our value proposition.”

Today the biggest challenge lies in incorporating the best attributes of those two strong cultures into a new culture having its own unique characteristics, he explains.

Although total headcount and client-facing staff contracted, in 2012 operating profits increased by 45 per cent and assets under management grew by 9 per cent.

“A big percentage of our target clients increased the assets they hold with our private bank,” says Mr Pietrini.

Last year, Banorte put in place a new system to improve client referrals between the private and consumer bank and set up a new team of product and investment specialists to assist private bankers. The bank’s focus is to continue strengthening the client service, broaden the product platform, particularly credit, trust and estate planning services, and expand the range of asset management products. Banorte has a strategic partnership with BNP Paribas, which manages local funds with a global strategy, and offers third party funds from BlackRock, Franklin Templeton, Alliance Bernstein and MFS.  

“Mexico is at a crossroads of historical changes as structural reforms will boost productivity, improve education and efficiency of the labour market,” states Mr Pietrini. “We are laying the groundwork to take advantage of these changes, by reaching out to Mexico´s young client base, building long term relationships with them and investing in their financial education.”

Furthermore, Banorte is nurturing relationships with the growing middle class, by offering differentiated products and services. “Many clients will blossom into high net worth clients as we start to see the results of the structural reforms.”  ET

Best Private Bank in Chile
Banchile Wealth Management

Despite increased competition, in particular from foreign players over the past couple of years, Banchile’s understanding of local markets and its ability to provide innovative investment solutions to clients remain strong competitive advantages, states Andrés Bucher, CEO at Banchile Inversiones. Last year, the Chilean private bank saw its clients assets increase by 30 per cent to $3.2bn (€2.3bn).

“Our leading position and deep understanding of local markets makes it difficult for foreign competitors to offer an investment proposition as comprehensive as ours,” claims Mr Bucher. “Our most important competitive advantage is our ability to understand our clients’ investment needs and objectives, so that we are able to offer them suitable investment solutions that fully meet and exceed their expectations.”

Another advantage the bank has on foreign firms is that Chilean investors declare a large portion of their financial assets to tax authorities, which allows them to use local platforms to invest abroad, he explains. The Chilean government is also encouraging holders of non-declared financial assets abroad to normalise their fiscal position at low costs.

Moreover, the Chilean financial markets are very deep and sophisticated and offer attractive returns. These aspects, coupled with a strong currency, low sovereign risk and positive economic growth prospects, means local investors prefer to keep significant parts of their investments in Chilean markets, says Mr Bucher.

Banchile is backed by the largest local bank in the country, Banco de Chile – partly owned by Citibank – and it prides itself in being compliant to multiple local and international regulations. “Given the financial scandals over the last four years in local and international markets, this high level of regulation has become an advantage versus our competitors and is highly valued by our clients.”

Key drivers of asset growth last year were the implementation of an efficient referral
system – Banco de Chile with more than 1.8m clients and 433 branches is a key source of new clients – and improved client segmentation.

Also, the Chilean private bank strengthened its wealth management investment team and research department and enhanced its information and client reporting systems, improving productivity and service. It is also developing a new business unit aiming to offer bespoke and integrated solutions to UHNWIs. ET

Best Private Bank in New Zealand
BNZ Private Bank

BNZ Private Bank, part of Bank of New Zealand – a subsidiary of National Australia Bank Group – saw assets under management grow by 18 per cent and the number of clients rise by 9 per cent last year.

“One of the key differentiators between BNZ Private Bank and our competitors is that we provide a best of breed investment proposition,” says Donna Nicolof, head of private bank. The Kiwi private bank offers third-party funds from AMP Capital, Tyndall IM, Russell Investments, Schroder IM, Pathfinder AM and iShares. “Further, with no financial incentives accepted or retained by BNZ private banking advisers from product providers, customers can have confidence that their investment portfolios are constructed with only their best interests at heart,” she says.

The private bank also leverages on a partners model, as it is part of BNZ Partners, which is a fully integrated business and specialist banking division incorporating private bank, agribusiness, corporate, property and business. “Our private banking advisers are part of highly empowered local teams organised around the customer and meeting all of their financial needs,” states Ms Nicolof.

Referrals from existing private banking clients and other BNZ divisions are a key source of new clients. BNZ Private Bank enjoys an average client tenure of 15 years, with around a quarter of clients having been with the bank for more than 25 years. During the past couple of years, the UHNW family office has been BNZ Private Bank’s fastest growing segment, with more than 70 per cent of client growth coming from new-to-bank clients.

In addition to investing in staff development, a key area of focus for the Kiwi bank is to further leverage its Trans-Tasman wealth management capabilities “to create competitive edge in this market, by bringing global market insights and more investment opportunities to customers,” explains Ms Nicolof.

Also, BNZ prides itself in being market leader in understanding and supporting the wealth and business requirements of indigenous Maori. Last year it established a Maori business sector board, which provides a governance and advisory role to the head of Maori business, and BNZ Private Bank provides a wide range of financial advice for a diverse set of Maori business ventures.

The Maori economy is worth around $37bn (€27bn) and Maori people and business are expected to play a significant role in the success of New Zealand in the next decades. ET

Best Private Bank in South Africa
Investec

Investec provides a wide range of financial products and services to a niche client base in three principal markets – South Africa, the UK and Australia.

While Investec Private Bank offers banking services – including lending, transactional based services and growth and acquisition finance – wealth management services such as portfolio management and stock broking are offered within Investec Wealth and Investment. However, clients have access to an integrated offering and the bank’s focus is on increasing cross-selling across different client bases.

The private bank predominantly targets a market of qualified professional individuals who earn in excess of R850,000 (€63,000) per annum, including in particular accountants, medical registrars and specialists, actuaries, attorneys and engineers.

“Everything we undertake is underpinned by our philosophy of being ‘One Bank’,” states Ciaran Whelan, global head of private banking. “For our clients, this means having a holistic view of their Investec portfolio, access to a variety of banking and investment services as well as a seamless experience, whether they are calling their private banker, our client support centre or interacting with us online.”

The bank has recently revamped its online banking and introduced an Investec tablet app. A  mobile phone app is being rolled out soon. “We are constantly looking at improving systems and processes to make the client experience even better.”

The South African environment was fairly volatile over the past year and a very strong stock exchange was overshadowed by very poor labour relations, weak currency, fiscal pressures and relatively low economic growth.  “We, however, started to see good growth in our private banking activities and pride ourselves on employing a team of extraordinary people, who deliver remarkable client service,” boasts Mr Whelan.

South Africa’s economy has essentially doubled in real terms since 1994, generating substantial upward social mobility, with most now experiencing a significantly higher standard of living, he explains.

“Although global markets remain challenging, improvement in equity markets bodes well for our business. With the rebalancing of capital light and capital intensive activities, as a group, we believe we have the right mix of businesses and revenue streams to capture the benefits of a sustained market upturn and to drive longer-term performance.”

Last year, Investec private banking and its wealth and investment businesses attracted around SR10bn in net new money, bringing total assets under management to SR260.4bn. ET

Best Private Bank in Mauritius
AfrAsia Bank

AfrAsia Bank, born in 2007, places a strong emphasis on clients’ circumstances and financial aspirations to craft products that offer wealth protection, according to Thierry Vallet, general manager of AfrAsia Private Banking.

 “We provide solutions to our client’s needs over time, from wealth generation and management, to preservation and transfer to the next generation,” says Mr Vallet. “We value service and confidentiality remains a paramount component of our approach.”

To meet increasing client demand for capital protection, last year the bank launched innovative products with its asset management arm Axys Capital Management. One of its flagship funds is the AfrAsia Special Opportunities Fund, which invests in short-term, secured credit opportunities in the Southern Africa Development Community (SADC) region, with a focus on the provision of credit to mid-market corporates. Capital guaranteed structured products are also very popular with clients and the bank launched several structured notes with Axys and international banks.

AfrAsia also offers third party funds from approved partners, including JP Morgan, Franklin Templeton, UBS, Bank of America, Motillal Oswald, Bell Potter and Imara Asset Management.

During last year, the number of private banking clients has increased by 42 per cent, while net new money grew by 12 per cent to Mur9bn (€290m), bringing assets under management to Mur22bn.

Afrasia’s international presence remains an important component of its performance. “So far, our continued development has brought us clients from more than 80 nationalities,” reveals Mr Vallet.

The bank has a presence in South Africa through its corporate finance entity and has acquired a 35 per cent stake in Kingdom Financial Holdings Lim (KFHL) in Zimbabwe. This new venture, which will open new channels of capital, lines of credit and deal flow for KFHL’s client base, is seen as an opportunity for AfrAsia to expand its franchise in the SADC region.

The bank also recently acquired 20 per cent shareholding in Geneva-headquartered New World Trust, which offers trust services and corporate strategic solutions to HNWIs and international clients.

AfrAsia Bank is also licensed by the Securities and Exchange Board of India as a Foreign Institutional Investor. ET