Global Private Banking Awards 2014: Winners' Profiles - Best Service Offerings

Best Private Bank for Customer Service
JP Morgan Private Bank

JP Morgan’s wealth management franchise, recognised for its high customer service standards, has been investing much time and resources in areas of rapid wealth creation, including India, Brazil, Mexico and US regions such as Florida and Silicon Valley.

The growth plan also relates to client segments. As well as maintaining what the bank calls its “growth trajectory” in the ultra wealthy space, JP Morgan has focused on
capturing broader market share in its high net worth business, both in the US and internationally, claiming particular success in Latin America and Asia.

 “Client service is at the heart of how we do business, and we are constantly thinking about how we can leverage our capabilities from one part of the world to help clients in another,” says Phil Di Iorio, CEO of JP Morgan Wealth Management.

Each customer is assigned a dedicated client service representative, with preferences facilitated for online and mobile access, bill payments, direct deposits and paperless statements. New clients are offered a “concierge service” to smooth the transition process. Both programmes began in the US and are likely to be extended internationally.

Programmes have also been developed to anticipate specific needs, including those of family offices, the next generation, and philanthropy. Family Office leaders representing major clients are also brought together twice a year to share common issues, discuss best practices and build relationships.

An Emerging Family Leaders programme has been built for the next generation to learn about family governance, investment strategies, philanthropy, and building a global network.

One of the biggest game-changers for the bank in terms of client interaction is the development of new technologies.“Younger investors tend to use multiple communication channels and draw from many information sources, and we are focused on engaging more effectively with them,” says Mr Di Iorio. YB

Best Private Bank for Digital Communication
Hana Bank

Despite challenging market conditions, Hana Bank doubled year on year growth in assets under management and client numbers which rose by 10.5 per cent and 9.3 per cent respectively between March 2013 and March 2014. Hana Bank has always had a particular niche in the ultra high net worth market, and in 2013 strengthened its offering with an exclusive networking club, The Hana Building Owner Club, to attract UHNWIs owning medium to large-sized office building (3,500-16,500m²) around the Gangnam area. The aim is to reach other bank users and secure new UHNW clients.

The bank also introduced a new model to offer a differentiated asset management service to clients with a wider pool of investment products, some of which are the only ones of their type available in Korea.

In terms of digital development, 2013 saw the completion of the Hana portfolio early analysis and diagnosis system, a risk-management tool that aids stability in asset management and a speedy response to market change which is currently going through the patent process. As market volatility increases, the new computerised system minimises risk, and has strengthened its internal communication, risk calibration and manager selection process.

The bank has also improved its mobile banking apps and the development of Omni-channel to meet customers’ expectations that transactions on their smartphones or tablets will flow directly to the branch. All of Hana’s online platform offers integrated money management and monitoring. For example, it recently launched Tablet Branch, providing financial services, including investment and tax consultations to customers at the time and place of their choice. Last year, the Future Finance Division was launched to bolster its non-face-to-face channels.  CJ

Best Private Bank for Islamic Services
Maybank Private Bank

Malaysia is the point of reference for Islamic finance through holding 60 per cent of the global sukuk market. More than 71 per cent of stocks in Bursa Malaysia are Sharia-compliant.

Maybank says its success in the private banking business is attributable to its high touch client service model and the breadth of its product offering and product innovation to meet new demands in deposits and financing.

The bank offers a full range of Sharia-compliant financial solutions through a strong affiliation with Maybank Islamic Berhad and Maybank Islamic Asset Management Sdn Bhd.

“We enjoy healthy acceptance amongst retail and wholesale customers which is not restricted to our growing wealthy Muslim customer base,” says Eunice Chan, executive vice president and head, high net wealth and affluent banking at Maybank. “New product innovations have been successfully introduced to fulfil the constantly changing needs of our wealthy Sharia-conscious clientele.”

The bank plans to strengthen its value propositions and product offerings by leveraging the group capabilities. “With the growing global acknowledgement of Islamic finance, we will further promote Islamic wealth management to high net wealth clients as an avenue for social responsible and sustainable wealth solutions that based on Sharia and certain defined ethical values,” says Mr Chan.

Initiatives to acquire and retain customers include enhanced customer relationship management capabilities and solid infrastructure, and the leverage of predictive analytic capabilities to gain deeper insights into its HNW clients and strengthen engagement.

Last year, Maybank’s HNW business segment recorded growth in total financial assets and assets under management of 15.6 per cent and 35.8 per cent respectively. Despite this high paced growth, cost to income ratio remains within expectation, at 22.5 per cent. 

Islamic financial assets among Maybank’s HNW clients have recorded a 22.6 per cent growth on the back of a 54 per cent rise in Islamic financing and a 12 per cent rise in Islamic deposits. CJ

Best Private Banking Boutique
Banque Syz & co SA

While not exactly expecting to burst out of his current “boutique status”, Eric Syz, founder of the Geneva-based private bank bearing his name, does plan to make an acquisition soon.

Even though other banks have been looking to more exotic climes, he feels such a deal is most likely to succeed in Switzerland, where there will be more firms coming under the hammer as a result of both economic and regulatory pressures.

At the same time, he is adamant that Banque Syz will not fall into the trap of taking on non-compliant assets which could tarnish its reputation. “We are one of the few banks without US-related legacy problems,” he states.  “Our proportion of non-compliant assets is less than 5 per cent of SFr30bn (€25bn).”

The key selling points for clients he wishes to attract will remain around conviction-led investing, rather than old-school private banking, maintains Mr Syz.

“What differentiates us is that our DNA is in asset management,” he says, particularly proud of collaborations with some external specialists including Arcadian, which approaches emerging markets investing with a quantitative mindset.

Mr Syz admits that private banking in Switzerland is still going through a turbulent time, but he says the calm after the storm can finally be seen in the distance. “Over the next five years, the regulatory pressure curve will start to flatten out,” he says. YB

Best Performing Private Bank       
Bank Julius Baer

Recognised as one of the world’s best performing private banking groups, Julius Baer is unsurprisingly falling victim to growing pains and perhaps a touch of indigestion.

An extra 150 jobs will be shed by the end of this year, as integration of Merrill Lynch’s non-US wealth management business into the Zurich-based bank nears completion. Baer cut an estimated 800 to 900 jobs, following the initial acquisition in 2012.

But these developments will not stop hiring at Julius Baer, with IT singled out by chief executive Boris Collardi as an area where the bank has fallen behind some competitors and must catch up with the pack.

Further acquisitions could also be on the cards, according to Mr Collardi, with Baer watchers expecting the bank to be in the running to buy Coutts’ international operation, despite the boss’s insistence that he would not participate in a price-swelling auction.

The bank recently released research recording wealth in Europe at €56tn. “This is the highest level on record, despite all the news about a European malaise,” says Robert Ruttmann, co-author of the bank’s research document,  ‘Wealth Report: Europe.’

“This allows Europe to maintain its role as one of the wealthiest regions in the world,” with wealth concentrated in France, Germany and Italy, plus smaller neighbours including Luxembourg, Switzerland and Belgium.

Although he says the research is purely “thought leadership,” it would be unusual indeed if it were not used to influence the bank’s strategic expansion in terms of hiring advisers for particular regions. One geographical area earmarked for expansion is clearly the UK, where Baer hopes to expand its customer base through identifying key investment ideas.  YB