Private banking

Рекомендации банкам

Важно, что в умах будущих wealth-клиентов деньги — просто инструмент, который позволяет потратить большее количество энергии на такие важные вещи, как семья, друзья и общество. Для создания ориентированных на них продуктов банкирам необходимо понять эмоциональную связь между жизнью и богатством

Причем она вовсе не простая и прямая.

Наиболее острая проблема, особенно на развивающихся рынках (кстати, самых перспективных для отрасли PB & WM), — это неправильная сегментация клиентов, что приводит к созданию нерелевантных с точки зрения клиентов продуктов. Как следствие — низкая степень доверия к private-банкам со стороны клиентов.

Модели сегментации, заимствованные на западных рынках, не работают на постсоветском пространстве по многим причинам, а разработать собственные пока смогли очень немногие банки. Неправильная сегментация клиентов уже привела к тому, что ныне в среднем 60% имеющихся wealth-клиентов в банках на самом деле не соответствуют минимальному инвестиционному порогу. Это не обязательно плохо, но банкам нужно стремиться к большей коммерциализации бизнеса, увеличивая долю действительно богатых клиентов.

Большинство способов сегментации, применяемых в настоящее время во всем мире, основано на финансовом состоянии клиентов. В зависимости от размера счета клиентам предлагаются различные возможности. На самом деле у обеспеченных людей намного больше возможностей в выборе продуктов в самых разных сферах жизни, чем тот объем, который предлагают сегодня банкиры, вписывая клиентов в рамки моделей сегментации. По сути, банкиры сами себя ограничивают в доступе к огромному количеству клиентов (несколько миллионов человек по всему миру). В ближайшие годы банкирам на всех рынках придется развивать финансовые продукты на основе более глубокого понимания потребностей клиента, чем это было раньше. И ключевым принципом дифференциации клиентов станет образ жизни. Поскольку уже не возраст или социальный статус определяет потребности в финансовых решениях, как это было 20 лет назад.

Конечно, в рамках статьи можно раскрыть лишь небольшую часть информации, выявленной в исследовании, и других уникальных данных, но уже видно, что роль банков в достижении финансовых целей, по мнению клиентов, катастрофически мала. Для объяснения этого можно выдвинуть две гипотезы. Первая такова — будущие богачи более чем самостоятельны в принятии решений и обходятся без консультантов, поскольку сами осведомлены о том, как добиться успеха. Однако более реальным представляется другой вариант — работа банков с перспективными клиентами пребывает на недопустимо низком уровне. Именно это должно дать пищу для размышлений и выводов.

Мнение. А.И. Гусев, научный руководитель, Институт финансового планирования, главный эксперт, Российская академия госслужбы при Президенте РФ

Как именно надо выстраивать архитектуру банковских VIP-подразделений с учетом пожеланий VIP-клиентов и каким образом можно добиться соответствия их ожиданиям? Не секрет, что большинство руководителей отечественных банков и финансовых компаний достаточно поверхностно подходят к данным вопросам, не придавая им должного значения. В большинстве случаев они ограничиваются подчеркиванием «статусности» своих VIP-клиентов, ориентируясь на свое собственное понимание этого термина (что вполне оправданно: ведь они «той же крови», что и VIP-клиенты, поэтому часто обслуживают их лично или же курируют наиболее важных из них), практически игнорируя требования корпоративного стиля. Бороться с таким стереотипом трудно и иногда чревато последствиями (особенно для подчиненных). Однако сейчас, когда конкурентоспособность банка на рынке отечественного private banking зависит от правильного позиционирования и четкой сегментации клиентской базы, руководителям имеет смысл пересмотреть свои позиции и попытаться понять, каким образом можно повысить эффективность этого достаточно перспективного направления.

Н.В.Чумак

Генеральный директор

Identity Group

Additional benefits of having a private banking relationship?

The benefits of private banking are manifest and for the most part measurable, but of course there are some significant intangible benefits. Whilst the use of cheques has dramatically reduced in the last twenty years, they are still very much a feature of private bank accounts. A cheque drawn on a private bank has, for generations, conveyed a subtle but inescapably strong message about the person signing it! This is still very much the case today. Furthermore, many private banks foster the feel of a private club, offering their clients the chance to mix at social events such as hosted lunches, fine dining evenings and large social and sporting fixtures such as Royal Ascot and Henley. The opportunity for networking with like-minded individuals at these events is another great advantage of private banking.

A Career in Private Banking

Private banking is a great career path that offers tremendous earning potential. 

Private banking exists at the intersection of wealth management and retail lending, so it requires unique, highly specialized experience and expertise. But a banker can’t just have great technical skills; they must also be very good with people and very comfortable sourcing new client opportunities. 

It’s such a high margin business for financial institutions that competition in the market is fierce for these HNW and UHNW prospects; the relationships are considered extremely valuable. And because many of these clients are also business owners or professionals, private bankers can serve as a great source of referral business to other divisions of the firm (particularly the commercial banking arm).

Распределение ответов на вопрос «Как состоятельные люди хотели бы запомниться потомкам?», %

                                 ¬                                 +------------------------T---------------¬                 Хороший человек ¦...........61...........¦      39       ¦                                 +------------------------+----------------                                 +--------------------T-------------------¬         Обеспечил будущее семьи ¦.........54.........¦        46         ¦                                 +--------------------+--------------------                                 +---------------T------------------------¬     Лидер в своей сфере бизнеса ¦.......37......¦           63           ¦                                 +---------------+-------------------------                                 +-------------T--------------------------¬            Изменил чью-то жизнь ¦......31.....¦            69            ¦                                 +-------------+---------------------------                                 +--------T-------------------------------¬   Новатор в своей сфере бизнеса ¦...21...¦              79               ¦                                 +--------+--------------------------------                                 +------T---------------------------------¬             Заработал состояние ¦..16..¦               84                ¦                                 +------+----------------------------------                                 +-----T----------------------------------¬                     Изменил мир ¦..11.¦               89                 ¦                                 +-----+-----------------------------------                                 +-----T----------------------------------¬                  Изменил бизнес ¦..10.¦              90                  ¦                                 +-----+-----------------------------------                                 +----T-----------------------------------¬                          Другое ¦...5¦              95                   ¦                                 +----+------------------------------------                                 +---T------------------------------------¬               Известный человек ¦..3¦               97                   ¦                                 +---+-------------------------------------                                 +--T-------------------------------------¬Ни один из вариантов не подходит ¦.1¦                99                   ¦                                 +--+--------------------------------------                                 -                                 ---¬       ---¬                                 ¦..¦ Да    ¦  ¦ Нет                                 L---       L---

Рисунок 5

1. Каковы региональные отличия в целях и поведении богачей будущего?

В отношении к финансам и в образе жизни состоятельных клиентов будущего есть отличия, связанные с местом рождения и проживания.

Например, в Западной Европе и США богачи почти в два раза больше внимания будут уделять проблемам общества и благотворительности, чем в Африке и на Ближнем Востоке. Для богачей в Индии, Центральной и Восточной Европе, Азии вдвое важнее быть известными, чем в Британии. Фактически ни один богач из Северной Америки не указал, что хотел бы быть знаменитым. Очень мало американцев сказали, что стремятся стать известными лидерами в какой-либо сфере бизнеса. Такие результаты полностью противоречат стереотипам о корпоративной культуре в Северной Америке.

Эти различия указывают на тонкие изменения в отношении к общественному признанию в различных культурах по всему миру.

1. Где банкиры?

Functions of Private Wealth Management

Private wealth managers use their expertise in a variety of fields to assist wealthy individuals in effectively managing their wealth. Here are some of the services provided by private wealth management:

#1. Earn Money

The first task of the private wealth manager is to generate new income and increase the client’s current wealth. Because of inflation and the growing number of high-net-worth individuals, the client’s goal is to remain at the top of the table and increase their purchasing power. With their wealth of investment experience, wealth managers must take advantage of various investment techniques that will generate additional income annually. Also, they can assist their clients in investing in hedge funds and private equity funds that may not be available to less wealthy individuals.

#2. Asset Protection & Capital Preservation

Private wealth management entails safeguarding client assets against lawsuits, government authorities, or other threats. However, wealthy clients are sometimes sued for a variety of reasons, including succession, marital issues, and property disputes, and they may be forced to compensate the other parties if they lose the lawsuits. Wealth managers should be proactive in dealing with lawsuits, either by preventing them from occurring or by reaching favorable out-of-court settlements. They may also move a portion of the client’s wealth to offshore banks to protect them from being over-taxation.

#3. Tax Management

Wealthy people strive to make the necessary tax payments in order to stay on good terms with Uncle Sam. Due to the fact that clients frequently have multiple streams of taxable income, they want to choose the most efficient tax plan that will save them money while still complying with the authorities. Therefore, a small difference in tax can result in large differences in after-tax earnings, and a private wealth manager who understands tax regulations can assist the client in selecting the most advantageous tax combination.

Распределение ответов на вопрос «Кто, вероятнее всего, окажется вам полезным при достижении ваших финансовых целей?», %

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Рисунок 1

1. Богач будущего: кто он?

В ходе исследования Scorpio Partnership было опрошено 1500 респондентов в разных странах. В список респондентов были включены достаточно молодые люди, которые скоро станут активными клиентами private-банков. Конечно, это не просто представители молодежи с амбициями и мечтами «стать богатыми». Участники исследования уже обладают капиталом в среднем 2 млн долл. США и предполагают увеличить его в несколько раз в ближайшие годы. Возрастная группа 16 — 29-летних составила 31% от всего количества респондентов, 30 — 44-летних — 45%, остальные — старше 45 лет.

Как показывают результаты опроса, среди клиентов будущего увеличилась доля тех, кто сам заработал свое состояние, а не получил его в наследство: это топ-менеджеры крупных компаний (60%), успешные предприниматели (18%) и пр. Они много работают, много путешествуют, пользуются современными технологиями и чрезвычайно активны в социальной жизни. Доходы поступают к ним достаточно быстро, амбиции весьма существенны. При этом расходуют они меньше, чем wealth-клиенты дня сегодняшнего. Этот аспект представляется особо интересным. Конечно, это влияет и на продажи банковских продуктов.

1. Как богачи будущего переживают рецессию?

Текущая рецессия повлияла на состоятельных клиентов, но не так драматично, как можно было предположить. Согласно исследованию Scorpio Partnership, около 40% респондентов смогли увеличить свое состояние в 2009 г. и более 60% убеждены, что не потеряли средств из-за финансового кризиса. Около 30% респондентов, все же потерявших часть состояния во время кризиса, планируют наверстать упущенное уже в 2010-м. И только 7% предполагают, что их состояние уменьшится в нынешнем году (рис. 2).

Difference between Private Banking and Wealth Management

There is no generally accepted standard definition of wealth management – both in terms of the products and services provided and the constitution of the client base served – but a basic definition would be financial services provided to wealthy clients, mainly individuals and their families.

Private banking forms an important, more exclusive, subset of wealth management. At least until recently, it largely consisted of banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager. On the whole, many clients trusted their private banking relationship manager to ‘get on with it’, and took a largely passive approach to financial decision making.

Private banking has a very long pedigree, stretching back at least as far as the seventeenth century in the case of some British private banks. It is, however, only really over the last 15 years or so that the term ‘wealth management’ has found its way into common industry Parlance. More sophisticated client needs throughout the wealth spectrum; a desire among some clients to be more actively involved in the management of their money; a willingness on the part of some types of financial services players, such as retail banks and brokerages, to extend their offerings to meet the new demand; and, more generally, a recognition among providers that, for many clients, conventional mass-market retail financial services are inadequate.

Wealth management is therefore a broader area of financial services than private banking in two main ways:

Product Range: As in private banking, asset management services are at the heart of the wealth management industry. But wealth management is more than asset management. It focuses on both sides of the client’s balance sheet. Wealth management has a greater emphasis on financial advice and is concerned with gathering, maintaining, preserving, enhancing and transferring wealth. It includes the following types of products and services:

(a) Brokerage.

(b) Core banking-type products, such as current accounts, time deposits and liquidity management.

(c) Lending products, such as margin lending, credit cards, mortgages and private jet finance.

(d) Insurance and protection products, such as property and health insurance, life assurance and pensions.

(e) Asset management in its broadest sense: discretionary and advisory, financial and nonfinancial assets (such as real estate, commodities, wine and art), conventional, structured and alternative investments.

(f) Advice in all shapes and forms: asset allocation, wealth structuring, tax and trusts, various types of planning (financial, inheritance, pensions, philanthropic), family-dispute arbitration – even psychotherapy to children suffering from ‘affluenza’.

(g) A wide range of concierge-type services, including yacht broking, art storage, real estate location, and hotel, restaurant and theatre booking.

Client Segments: Private banking targets only the very wealthiest clients or high net worth individuals (HNWIs): broadly speaking, those with more than around $1 million in investable assets. Wealth management, by contrast, targets clients with assets as low as $100 000, i.e. affluent as well as high net worth (HNW) clients.

Robert J. McCann, President of the Private Client Group at Merrill Lynch, provided a succinct definition of wealth management at a recent industry conference:

“Wealth management addresses every aspect of a client’s financial life in a consultative and a highly individualised way. It uses a complete range of products, services and strategies. A wealth manager has to gather information both financial and personal to create an individualised series of recommendations, and be able to make those recommendations completely tailored to each client. Off the shelf – it won’t do. What requires is connecting with clients on a personal level that is way beyond the industry norm”.

American Academy of Financial Management India offers the Chartered Wealth Manager Designation program that focuses on Wealth Management and Private Banking.

How to Find Wealth Management and Asset Management Services

There are a number of ways to find a wealth manager or an asset manager. The time-tested way is to get advice from a family member or friend who has a professional they use. This type of endorsement certainly has its merits, as it allows you to get a recommendation from someone you trust. However, just because an advisor is a good option for one person doesn’t mean they’ll be the best choice for you too.

For instance, a lot of people inherit an advisor from their parents, but this might not be the manager best suited to their situation. Your parents are naturally at a very different stage of their lives from you. Look for a financial advisor who specializes in serving clients with financial situations comparable to yours.

SmartAsset also has a free financial advisor matching tool that can pair you with up to three advisors who serve your area.

Private Banking & Wealth Management — как быть?

Что же отличает банки сегмента PB&WM и как им удается достигать более высокого проникновения в инвестиции? Сейчас у всех банков на рынке есть доступ к инвестиционным продуктам как российского, так и зарубежных рынков, все банки предлагают одни и те же инвестиционные продукты. Главное различие кроется в уровне экспертизы и процессе организации работы. В этом отношении важны наличие инвестиционной экспертизы внутри подразделения PB и уровень квалификации персональных менеджеров по инвестиционным вопросам.

Персональные менеджеры — единое окно во все продукты банка, и от того, насколько профессионально и глубоко сможет менеджер проконсультировать клиента на начальном этапе, зависит, дойдет ли дело до инвестиционных специалистов.

Что касается инвестиционных специалистов, то ключом от двери в мир WB является наличие инвестиционной экспертизы внутри подразделения PB. Какими бы профессиональными ни были партнерские организации или специалисты инвестиционных подразделений банковской группы, только сотрудники структуры PB имеют действительно высокую мотивацию для работы с клиентами сегмента, проводят длительные и глубинные консультации, разрабатывают индивидуальные инвестиционные решения. Именно это и нужно клиенту.

Difference #5: Career Stability

Career stability is almost inverted between investment banking and wealth management.

As a general rule, in investment banking you will almost certainly not be laid off until you hit the vice president level, because you’re more or less a worker bee until that point (and quite cheap relative to more senior people). While most people don’t want to stay in investment banking that long, so do end up leaving, it’s their choice. They could certainly stay in their investment bank or lateral to a different one if they were inclined to do so.

However, as you get to the VP / MD stage that’s when people begin to be shown the door in investment banking. This leads many people, usually in their thirties, to need to reinvent themselves in some fashion after spending a decade or more in investment banking. 

By contrast, in wealth management the first 3-5 years is incredibly precarious. The majority of folks will leave the industry during this time. However, if you can get through this first period you have remarkable career stability, because you are essentially tied to the assets of your existing clients (even if you don’t get many new clients).

It is very rare to see those who have been in wealth management for a decade or more leave the industry unless they just want to do something entirely different. 

The private banking top 10 list

Perhaps another factor in the decision taken by C.Hoare & Co was the difficulty in competing with the industry’s very largest players when it comes to wealth management. Leviathans of the industry such as UBS, BNY Mellon, Bank of America, Morgan Stanley, Credit Suisse, Citi, JP Morgan and Goldman Sachs dominate the top 10 of the world’s largest private banks (or private banking divisions/subsidiaries of large bank holding companies) in terms of assets under management. Only RBC (Royal Bank of Canada) and BNP Paribas from France slip into the top 10 from outside of Switzerland and the USA. Together the top 10 alone, had a staggering figure of approaching $10,000bn under management at the end of 2016! Perhaps to reflect this focus on wealth management and to distance themselves from tax evasion scandals involving ultra-high net worth (UHNW) Americans, UBS replaced the words “private banking” with “wealth management” in their title in 2016. Credit Suisse made exactly the same move that same year.

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About the Author

Gaurav Sharma

Gaurav started his finance career as an intern in Citi’s Institutional Clients Group in 2009, eventually ending up as an Associate Director at Standard Chartered Bank’s Corporate & Institutional Banking division a few years later. By 2016, he was an independent consultant helping FinTech start-ups in London with product development and launch. Gaurav also helps banks with their digital banking initiatives and advises PE & VC firms with investments in the financial services and FinTech sectors.
Gaurav writes on topics ranging from EU banking regulations and tradional finance to Blockchain startups and the future of banking itself! He has an Engineering degree in Computer Science and an MBA with a double major in Finance and Marketing. He is also a Certified Financial Risk Manager.

What is wealth management?

Simply put, wealth management is an investment advisory service with the main goal of growing and protecting a client’s wealth; namely, those of high net worth individuals (HNWIs) and accredited investors.

You may read more about the topic in the article What is Wealth Management?

Who offers wealth management services?

Wealth management firms, and large financial institutions with a wealth management division, offer these services.

Who wealth management is for

If the service is catered by a wealth management firm, the client base will be high net worth individuals, families and trust groups. If it is catered by a bank, the clients can consist of business entities or affluent individuals.

Wealth management services

• Legal and estate planning
• Accounting and tax services
• Charitable giving plans
• Help with starting or selling a business
• Examination of healthcare and social security benefits
• Investment management and advice, including retirement planning

Wealth managers will locate and liaise with professionals of any field to ensure the above services are fulfilled for their clients.

Wealth management products

These may or may not be directly offered by wealth management firms and financial institutions.

• Insurance
• Liquid assets
• Home finance
• Short-term investments
• Long-term investments

A Normal Day in WM

Wealth mangers should expect to interact with their client’s staff on a pretty frequent basis. This would mostly be for operational things though like completing paperwork or following up on some transactions. In addition to this, there are likely going to be detailed monthly or quarterly meetings where the client’s portfolio is reviewed with her and major tweaks are agreed upon. The frequency does depend on the size of the client.

Expect to spend a lot of time with internal teams as well. Your assistant RMs would likely need your help with things that they are stuck with. Investment analysts would likely need to speak with you regarding their models and whether a client’s portfolio needs tweaking. Risk managers might hit you up in case there is some over-allocation or other issue with one of your clients. It becomes more about problem solving when you look at it on a day-to-day basis.

Locations

Most HNI’s are located in financial hubs and major urban centres around the world. The US leads the pack followed by the EU, Japan, China and India. So if you decide to get into wealth management, you would most likely be based out of the US East/ West Coast, major European cities or financial centres like Singapore, Dubai and Hong Kong.

This can be an important consideration for some as the cost of living etc. is generally significantly higher in such urban centres. However, that is where the clients are and thus that is where you must be!

Private Banking Client Demographic

While specific definitions and asset thresholds vary by firm and jurisdiction, most retail banking customers typically have under USD $100,000 in investable assets.

A second segment, often referred to as mass affluent, includes personal banking customers with between $100,000 and $1MM in investable assets. As customers approach this $1MM asset threshold, they start to become much more attractive to the wealth management and private banking groups at bulge bracket banks.

But the core private banking client is considered HNW or UHNW, which means $1-10MM or greater than $10MM, respectively, in investable assets.

These are usually high earners, which may include business owners, entrepreneurs that have had a successful exit, senior managers and executives at large corporations, partners in professional services firms (like law, engineering, accounting/advisory, etc.), and healthcare professionals like dentists and medical specialists.

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