The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Wealth

Private bankers count the cost of less face time

Private banking is a business based on personal relationships and trust – and it’s hard to truly connect with someone on Zoom. So long as the pandemic persists, this presents a substantial challenge to wealth managers, who can only grow their businesses by bonding with wealthy clients and winning new mandates.

video-conference-wfh-laptop-pixabay-960.jpg

Private banking is an intensely personal experience. There’s a symbiosis at work that goes beyond the financial world’s normal tenets.

A wealthy family might stay loyal to the same provider for generations. Longevity is the foundation stone upon which Switzerland’s wealth management industry is built, but it also thrives on change.

Income has to grow, and that means getting new business through the door. A Hong Kong banker at a global lender says he expects his relationship managers (RMs) “to bring in at least two new super-wealthy clients each year”.

“A lot of the activity happens in the first two years,” he adds. “That’s where we make our money. Without that new blood, the private bank doesn’t grow.”

This raises questions. If, as is the case in a pandemic year, you can’t jump on a flight to see a prospective client, or even glad-hand them in a nice restaurant, how can you generate additional fees or grow your lending book?

They couldn’t envisage moving over a portion of their business when we hadn’t met face to face
Sarah Courtney Dockett, Citi Private Bank UK
Sarah-Courtney-Dockett-Citi-443.jpg

Those of means like to size a person up before giving them assets to manage.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree