Private banking: Global managers lose their shine
Global wealth managers lose out to local players; Client expectations set to change playing field
A survey of high-net-worth clients and wealth management executives reveals a large gap between their perceptions. The report, Wealth management after the crunch, shows that while about 80% of wealth management executives believe they have performed well, only 20% of clients agree.
As Euromoney went to press, some large international banks were bidding on private banking units being put up for sale at the insistence of EU competition authorities following state-support operations. These include the private banking business of ING and Kleinwort Benson, which Commerzbank is auctioning off. It’s to be hoped these bidders know what they are getting themselves into.
What about me?
Consultant Bruce Weatherill, co-author of the report, says it is not just a case of clients being upset at performance during the market collapse since the survey was conducted in April and May this year. "Things that wealth management firms claim to offer are being called into question. Clients are asking themselves: ‘What has my wealth manager really done for me?’," says Weatherill. As a result, 40% of the 150 clients surveyed said they are thinking of changing their wealth manager.
Weatherill says it is the global players that are losing out.