Private banking: The ins and outs of open architecture
Offering third-party products proved no panacea in the financial crisis, yet clients still distrust an exclusively in-house approach. As the focus returns to increasing revenues, private banks are rethinking their models. Helen Avery reports.
|Private Banking and Wealth Management Survey 2011|
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AN OPEN ARCHITECTURE approach, with private bankers agnostic as to which bank’s products they use for their clients, so long as they are the best products, always seemed more of a marketing ploy than strict reality. High-net-worth clients wanted to believe that their private bank was not steering them deliberately into in-house products to make money for the overall firm, and private banks touted open architecture platforms to assuage their fears.