Global Private Banking Awards 2015: Winners’ Profiles – Regional Winners

Best Global Private Bank

Best Private Bank in Asia

UBS Wealth Management

Client assets were up 9 per cent to slightly more than $2tn (€1.8tn) at UBS Wealth Management in 2014, despite a 19 per cent fall in net new money to $46bn.

Looking at these figures it quickly becomes clear what a colossus its managerial team is dealing with and how constant innovation and re-invention is needed to maintain flows and profits.

The Asia Pacific region, where 25 per cent of the bank’s private client assets are sourced, is currently showing the strongest inflows, followed by Switzerland and then the emerging economies.

The latest strategy for the offering, under Jürg Zeltner in Zurich, is to further streamline the wealth management business model, significantly reducing complexity on costs, focusing on core markets, increasing standardisation of products and consolidation of booking centres and IT platforms.

These broad strategies will work in tandem with a shift of traditional advisory assets into mandates, combined with a big push to serve affluent clients, in addition to the mainstays of high net worth and ultra wealthy clients.

The digital transformation at the bank seems even more focused, with a complete review of client communications and the introduction of a simple, human and clear tone of voice, teaming up with a mobile-compatible, freshened-up brand look and feel.

New initiatives are handled through Innovation Labs, currently being developed for Zurich, Singapore and London. Since 2013, digital systematic portfolio monitoring has been at the heart of the UBS Advice
service, presently monitoring the overseers of $21bn in client assets. Portfolios are checked every night for six criteria, in return for a flat fee.

Mr Zeltner agrees that one of his key priorities is moving today’s business model onto a “digital footing”.

While he believes fintech start-ups have totally different approaches to wealth management, banks must embrace the differences and learn how to adapt, rather than worrying that they will be replaced by robots. “If you have wealth, you want it in a safe place, in a regulated bank,” he says.  YB

Best Private Bank in Europe

BNP Paribas Wealth Management

With global client assets nudging $340bn (€300bn) and profits up 9 per cent to more than €920m during 2014, BNP Paribas is proving difficult to challenge. Its private banking operations in the eurozone are now making significant inroads into Italy, Luxembourg, Switzerland, Germany, the UK and Turkey, among others, in addition to leading positions in France and Belgium.

The judges also recognised the French bank’s increasing footprint in Asia and in Hong Kong in particular.

“Being European is a great asset to us,” says Vincent Lecomte, co-chief executive at BNP Paribas Wealth Management. “The Chinese are coming to us to help them invest in Europe, which is becoming much more attractive to them and they have a strong belief in the potential upside.”

The bank has been a significant promoter of philanthropy and opened entrepreneurial hubs across Europe, facilitated by educational programmes including a one-week course for female entrepreneurs held in California.

Its sponsorship of the prestigious Roland Garros annual tennis tournament in Paris has been a particularly efficient springboard for private banking business, helping facilitate meetings with global clients, often on the back of coaching clinics with tennis champions.

BNP Paribas has also stepped up its presence in New York, not just to encourage US flows, but to monitor global compliance with US regulations.

But the most prolific rise in the bank’s business has been in its suite of SRI strategies, aided by expertise in this area developed in the asset management division. Private client assets in SRI have burst through the $6bn barrier at BNP Paribas, currently rising 50 per cent each year and spanning strategies including microfinance, water treatment, energy efficiency and social entrepreneurship. YB

Best Private Bank in Central and Eastern Europe

Erste Private Banking

Erste is ambitious. The Vienna-headquartered bank is now present in six countries in CEE, namely Austria, the Czech Republic, Slovakia, Hungary, Croatia and Romania, and its clear goal is to become the number one provider of private banking services in all those countries, according to Peter Ipkovich, head of private banking CEE at Erste.

“This is quite challenging in some countries,” he admits. “Nevertheless, we are prepared to use any opportunity to boost our business as we have done recently in Hungary, where we acquired the Hungarian Citibank operations.”

Client numbers were up by 3.5 per cent to just under 13,500 in 2014, while assets under management rose by 7.3 per cent to €18.1bn.

The dual service model, implemented in all countries Erste operates in, means the main account manager in a branch shares responsibility for the client with the private banker. The private banker however acts as primary relationship manager for all clients’ banking needs.

Portfolio management and most of the fund of funds solutions are managed centrally, whereas local flavours and needs are covered by unique products in each entity, explains Mr Ipkovich. “It’s a mix of central and local product resulting in tailor-made solutions for our customers. The alignment is not always easy but crucial for a comprehensive product range.”

Private banking clients in CEE are becoming more educated and increasingly demanding, he believes, while economic growth in the region remains at a low level, there are indicators that it could soon outpace the rest of Europe.  ES

Best Private Bank in the Middle East

Credit Suisse

Credit Suisse’s client-facing technology initiative is a perfect example of how private banks, in order to remain competitive, are having to transform their service models. The bank says it has empowered clients with round-the-clock access to account information, market insights, and intelligence personalised to their portfolios, while giving them the ability to trade.

In early 2015, the global bank launched its digital private banking platform first in Asia Pacific, its largest private banking business outside Switzerland, followed by the introduction of a private banking app in its home market.

This was the first step of a multi-year global rollout, which will cover the US and Europe from late 2016.

“For us it is important to create a consistent user experience across all regions, hence our architectural thrust to create a digital platform that can be adopted across different booking centres around the globe,” says Marco Abele, managing director and head of Digital Private Banking.

Having launched an app to help relationship managers give better advice in client meetings, the bank is planning to create a new dedicated “RM Ecosystem” based on the new digital platform, aimed at connecting daily activities, improving productivity and providing advisers with timely information to deepen client engagement.

Change management, talent transformation and client awareness are key factors for a successful digital transformation, says Mr Abele.

“We can build the most beautiful application, but if it is not used it is worthless,” he states. “A transformation effort means a behavioural change of all participants.” To facilitate that change, it is important to involve the participants early in the design process, he says.

“Impatience is the biggest challenge. Digital transformation is a marathon, not a sprint,” warns Mr Abele.

The bank also won awards for best private bank in Russia and in the Middle East, for the third and second year running, respectively.

In the Middle East, the bank was able for the first time to provide lending and custody against local GCC (Gulf Cooperation Council) shares to clients.

“This key differentiating capability is important for our growth and is enabled by our integrated bank approach, combining private banking, investment banking and asset management capabilities,” says Bruno Daher, Mena CEO. UHNW clients are of strategic importance to the Middle East region and account for most of the bank’s business.

“With an appetite for global solutions, and an affinity for emerging markets, they are a sophisticated client and the key decision makers in financial institutions, public sector and corporates.” Despite the geopolitical situation and resulting economic turbulence having a significant impact on clients and their businesses, the bank still foresees a high degree of opportunity and growth for the region. “The key to managing challenges is to remain close to clients,” he says.

In Russia, where the bank claims an  onshore footprint since the opening of its Moscow office in 1993, wealth is gradually becoming more global. “UHNWIs are increasingly investing both directly and indirectly into international companies and markets,” observes Dmitri Kushaev, Credit Suisse CEO Private Banking Russia. “Our relationship managers and specialists are locally and culturally anchored in Russia and understand the needs and requirements of Russian clients.”

Entrepreneurs, mainly in the first generation of wealth, are a key client segment for the bank and particularly benefit from Credit Suisse’s “one bank” model and “dedicated investment offering”.  ET

Best Private Bank in the US

JP Morgan Private Bank

JP Morgan has managed to snatch the much coveted award from Northern Trust, after an unbroken six year spell for the Chicago-based bank.

“In 2014 net new money increased in the US and we continue to see growth across our business,” says Kelly Cesare Coffey, CEO of JP Morgan’s US Private Bank. “This growth is driven in large part from the long-term relationships we have built with our clients.”

Net new money increased globally by $20.4bn (€18bn) bringing total AuM to $428bn at the end of last year, of which around 80 per cent was booked in North America. The US bank also has significantly increased its front office headcount, by 25 per cent in the country and by 75 per cent internationally.

Wealth creation continues to be a key growth driver. “When you look in places like northern California and southern Florida, for example, not only is wealth being created rapidly, demographics are shifting,” says Ms Coffey.

In northern California, wealth growth is driven by expansion of technology companies, resulting in an increase of younger clients. It is a different story in southern Florida, where growth is coming from international businesses increasing their presence, rising real estate prices, baby boomers and retirees.

The bank has continued to invest in staff who understand local dynamics, and have expertise of client sectors, such as technology and healthcare.

By bringing together expertise across investments, banking, credit, philanthropy, trust and estate planning, clients’ needs are looked at from every angle, says Ms Coffey, and clients are given the “most comprehensive advice and solutions”.

“Our core belief is that when you do the right thing for clients, they will continue to entrust you with more of their assets.”

Rejecting criticism about the bank’s standardised product offering globally, with little regional variation, particularly in Asia, Ms Coffey states that while it starts with the bank’s view on global markets, advice is customised to each client’s specific situation and needs. “Being a global private bank, we are getting first-hand insights from our teams and clients around the world,” she says.

Having teams on the ground in Asia, for example, means not only can they help clients in the region, but they can also use what is learned locally to create better solutions for clients in other parts of the world who are looking to invest in Asia, believes Ms Coffey.

Being able to complement personal client interactions with a digital experience that is “both thoughtful and engaging” is one of the key challenges of private banking today, says Ms Coffey. “We are constantly analysing how we can bring our best thinking and advice to clients in a personalised, digital way.”

Progress on that front has been made with JP Morgan Online, both a website and mobile app, which offers clients access to manage their banking, credit and investment accounts as well as extensive market news and the bank’s thought leadership. Recently, the bank added the ability for clients to log in to the mobile app via Touch ID.  ET

Best Private Bank in Latin America

Santander Private Banking

Private banking is a people business – something that Santander claims to take very seriously.

“The banker is the key, with a goal to know in depth the customer, helping in taking investment decisions, and being close in the follow up of the investment portfolio, establishing a confidence relationship in the long term,” says Gonzalo Algorri, group director of Global Private Banking Santander.

For this reason, training is fundamental, not only from a technical point of view, but also in the use of communication skills. Resources are dedicated to tailor-made programmes for banks at leading universities. In addition, the bank develops in-house training in which professionals share their experiences and knowledge.

The bank has also developed a technology platform to allow managers to track their clients’ needs, with “cutting-edge” tools that puts features of the advisory model at the disposal of the client.

“Our tools help bankers to manage client portfolios giving them information, alerts and all the data they need to provide tailor-made solutions every time,” explains Mr Algorri. “Customers feel comfortable when they notice that Santander Private Banking has enough material and human resources for developing a personalised and highly specialised management of their capital.”

In product terms, the emphasis is on creating solutions to meet clients’ financial needs. The current interest rate scenario sees increasing client demand for credit operations, either for tax reasons or to undertake new investments.

Santander has achieved growth at more than 22 per cent last year in Latin America. Business in Brazil is growing 23.3 per cent; in Mexico at 17.3 per cent; in Chile at 25 per cent and in Spain at 8.4 per cent.

“Our commercial business model adapts to local regulations in every country where we have presence,” adds Mr Algorri. “For instance, in Latam we have anticipated the regulatory changes that have been implemented in selling procedures.   CJ