World's Best Private Banks 2021: Global and Country Winners

Methodology: Behind the Rankings · GLOBAL WINNERS · J.P. MORGAN PRIVATE BANK · LGT BANK · HANA BANK · BBVA · CREDIT SUISSE · NORTHERN TRUST. Interstitial Close Menu Search GlobalFinanceMagazine Globalnewsandinsightforcorporatefinancialprofessionals CurrentIssue February2022 Editor'sLetter TheeffectoftheGlasgowCOP26meetingcontinuestogrowandisnowpropellingthecarbon-tradingmarket. Advertise Register/LogIn LogIn EmailAddress Password Thisisavalidmessage ForgotPassword? LogIn NotregisteredonGFMag.comyet? 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GlobalData CountryData EconomicData Non-EconomicData Glossary Sources Theideathatmorewealthforsomewilltranslateintomorewealthforeveryonehasdeeproots.Today,datashowsthatthegapbetweentherichestandthepooresthasneverbeenwider. Multimedia Videos eBooks Webcasts/Webinars ExpertPerspectiveVideos(Sponsored) WhitePapers PressReleases Surveys OnOctober27,GlobalFinanceconductedaSub-custodyRoundtable,moderatedbypublisherandeditorialdirectorJosephGiarraputo.TheRoundtableagendacoveredcrucialtopicsinthesub-custodysectorincluding:theglobalandregionalimpactontheCOVID-19 pandemiconsub-custodians;theeffect... CurrentIssue Advertise Register/LogIn Tuesday,March01,2022 TheMagazine December2020 World’sBestPrivateBanks2021:GlobalandCountryWinners World’sBestPrivateBanks2021:GlobalandCountryWinners Advertisement Acrisis-filledyearremindedprivatebankingcustomersofthevalueofthepersonaltouch.Thisyear’swinnersfoundwaystoaccommodatethem. December09,2020 Author: CraigMellow Formostofthepastdecade,privatebanksstruggledtokeepupwithanunprecedentedlymobileandglobalclientele.Boardroomsloadeduponwhiz-bangtechnologytotransformtheoak-paneledpersonaltouchintoanywhere-anytime,iPhone-sizedfinancialmanagement.Hands-onfamilycounselinggavewaytopop-upnetworkingeventsinworldcapitals,onemorecalendardateforajet-settinghighnetworthclass. In2020,somethingfunnyhappened.Thejetsettershadtostayhomeandbegantocrave—whatelse?Thepersonaltouchoftrustedfamilycounselors.Privatebankershadtodustoffoldskills. “Wealwayshadacloserelationshipwithclients,”saysDavidBailin,CIOofCitiPrivateBank.“ThisyearIwoulddescribeitastrulyintimate.” Clientshadplentyofappetitefortrustedadvice.Prevailingmoodsonthecoronaviruspandemicswungfromcomplacenttopanickedandbackmorethanonce.Financialmarketscrashed,soared,thengyrated,moreorlessintandemwiththatmood.Geopoliticsdidnottakearesteither,withbitterlycontestedUSelections,anassertiveChinaandastillunsettledBrexithangingovermarketsandpersonaldestinies.Guidanceonhowtointerpretthiswhirlwindofeventsgrewmorecacophonousaskeyworldleadersscoffedatscientificconsensusandmediadividedintopartisansilos. Againstthisbackground,privatebanksbegantoadoptanadditionalroleasinformationsource.Citi,GlobalFinance’sBestPrivateBankforNetWorthof$25MillionorMore,bombardedcustomerswithonlineseminarsfeaturingstructuredinvestmentexpertsonedayandepidemiologiststhenext. “Clientsabsolutelylovedourprogramming,”Bailinsays. “Wehadupto1,800peopleaweekjoining.”Competitorsacrosstheworldfollowedsuit.Brazil-basedBancoItaúUnibanco,ourBestPrivateBankforDigitalClientSolutions,heldsome200webinarsandvirtualmeetingswitheveryonefromthebank’sowntopexecutivestonationalpoliticians. Thatdoesn’tmeanprivatebankersstoppedleaningintotechnologyastheCovidpandemicforcedthemtoturntheirbusinessmorefullyvirtual.Behindthescenes,evolvingfintechandartificialintelligencesystemskeptspeedingupandslimmingdownclunkyback-officeandcomplianceoperations,handingacompetitiveadvantagetothemostadroitadopters.Oneexample:Singapore’sDBSBank,aperennialvanguardinstitutionthattakesthisyear’sawardforBestUseofTechnology,debutedanall-digitalaccountopeningsystem,short-circuitingreamsofpaperworkandgivingitaninsidetrackonnewclients. Butprivatebanking’srelationshipwithtechismaturing,saysAnnaOmarini,professoratItaly’sBocconiSchoolofManagement,whostudiesfintechs;automatedsystemswillneitherdisrupthighnetworthadvisersoutofexistencenoryieldthekillerappthatenablesthemtooverwhelmtheircompetitors.Technologyisbacktobeingthecart,sheargues,whicheverybankadaptstothehorseofitsclienteleandbrand. “Techisaforcechangingtheindustry,butnottheonlyone,”saysOmarini.“Banksshouldhaveaholisticapproachtodevelopingvaluefortheircustomers.”    BattlingBack Risingcompetitionatalllevelsisanotherforcechangingtheindustry:lastyear,thisyearandthenext.Attheupperendofthewealthscale,theultrarichcontinuetomigratefromprivatebankstofamilyofficesastheirprimarywealthmanagementvehicle. “Familyofficesareexplodingnowmorethanever,”saysLaurenCohen,aprofessoratHarvardBusinessSchoolwhofollowsthem.“Familiesdon’twanttobeoneof20clients.” Atthelowerend,mass-affluentbrokerageskeepshiftingtheirgoalpostsandenrichingtheirofferingstoretainclientswhocrossthetraditional$1millionprivate-bankingthreshold. Thebestprivatebanksarebattlingback.Forultrahighneworthindividuals,thatmeanssymbiosiswithfamilyoffices,doingwhattheycan’tdoforthemselves:whichisalot. “Familyofficesaretryingtoreplaceanorganizationof1,000peoplewithastaffofmaybethree,”Cohensays.“Manyoftheservicesprivatebankscanprovidearestillincrediblyvaluabletothem.”NorthernTrust,ourwinnerasBestPrivateBankforIntergenerationalandFamilyOfficeServices,understoodthisnichelongago.Itextendeditsdominancethisyearbyfoundinganinternalthinktank,theNorthernTrustInstitute,andexpandingmanagementoptionsforphilanthropies. Butthemostdecisiveindustryshiftof2020wasmovingdownmarket,blurringorobliteratinglinesbetweenmassaffluentandprivatebankingtocapturethesoon-to-be-rich.MorganStanley,ourBestPrivateBankforNetWorthUnder$1Million,wasalreadyaleadingmass-affluent“wirehouse”intheUS.Itstoleamarchonthecompetitionthisyearwithtwomajoracquisitions:pioneeringonlinebrokerageE*TRADEandEatonVance,amidsizedassetmanagerthatcombinesinstitutionalandhighnetworthaccounts.  OtherWallStreetgiantsfollowedthesametrend.JPMorgan,whichrepeatsin2020astheBestPrivateBankintheWorld,redrewdivisionallinestogroupclientsfrom$250,000to$25millioninnetworthwithinonewealthmanagementstructure.GoldmanSachs,recognizedthisyearasthebestNorthAmericanBankforEntrepreneurs,reshuffledsimilarlytointegrateprivatebankingwithitsfast-growingMarcusonlineretailunit. StakingOuttheNewHeartland Nolessimportantthanrecognizingsub-$1millionclientswasstakingoutanewprivatebankingheartlandinthe(relative)middletierofwealth,fromabout$5millionto$20million,saysNalikaNanayakkara,wholeadsthewealthandassetmanagementpracticeatErnst&YounginNewYork.Thisisachallenginggrouptoservicebecauseofitsdiversity:fromathletesandentertainerstoC-suiteexecutivesandlaw-firmpartners.Butit’swellinsulatedfromraidsbyeitherwirehouses,whichcan’toffersufficientservices,orfamilyoffices,whoseoverheadistooheavy. “Firmsarefindingoutthisneglectedgroupisagoldmine,”Nanayakkarasays.“Allthebigplayersarefocusingeffortsinthisspace.” Thepandemicseemstohaveacceleratedanotherkeyconcernofprivatebankingclients:socialimpact.So-calledenvironmental,social,andgovernance(ESG)fundskeptgrowingevenafterthetumultuousstartto2020,accordingtoCerulliAssociates. Politicaleventstiltedinasociallyconsciousdirection.TheEuropeanUnionandChinabothputambitiousclimate-changetargetsattheheartoftheirpost-Covidrecoverystrategies.SkepticslosttheirglobalchampionwithDonaldTrump’sreelectiondefeatintheUSMarketsalsocooperated;stocksin“virtuous”industrieslikerenewableenergyandelectricvehiclessoaredwhileoilandminingsharescrashed. Moreconvincingforprivatebankersistherisingmillennialgeneration’sfaithininvestingforgood.UBSfoundthatnearlythree-quartersofhighnetworth18-to-34-year-oldsintheUSmeantoinvestsustainably,comparedto6%ofthoseover65:agapdifficulttoignoreasuntoldtrillionspasssteadilyfromthelattertotheformer.  UBShasbeenshiftingtowardESGinvestmentforadecade,andthisyeartheSwissindustrygiantformalizeda“sustainabilitybias”asits“preferredsolution”forlong-termportfoliomanagement.ThatearnedUBSournodasBestPrivateBankforMillennials—nowaged24to39—despitenoobvioushipstercredemanatingfromZurichheadquarters.    Someexperiencesofthepandemicyearseemcommontomostpeople,richorotherwise.IsolationmadeustreasurehumancontactasZoomfatiguegrewextreme.Afracturedandshrillinformationenvironment,inthefaceofcriticalpracticalandfinancialdecisions,madeustreasureadvicewecouldbelieve.Boththesemassphenomenacanworktoprivatebanks’long-termbenefitiftheyrecommittotheircoremission:onethathasnotchangedthatmuch,despitetheupheavals. “Itreallyboilsdowntotrustedrelationshipswithyourclients,”EY’sNanayakkaraconcludes.“Everythingelsecanbecommoditizedveryquickly.” Methodology:BehindtheRankings GlobalFinancestaffselectwinnersfortheseawardsbasedonentriessubmittedbybanks,companydocumentsandpublicfilings.Noproprietaryinformationwassoughtorsharedintheawardsprocess.Weconsiderlocalmarketknowledge,globalfootprintandinvestmentbreadthandsophistication.Becausemetricsarerarelypublicinthissensitivecorneroffinance,weincorporateperspectivefromanalystsandconsultants.PerformancedataarealsodrawnfromindustrysourcesincludingScorpioPartnership’sannualGlobalPrivateBankingBenchmarkandAsianPrivateBankermagazine’sregionalleaguetables.Sizeandgrowthareafactor,butGlobalFinancealsoconsideredcreativity,uniquenessofofferinganddedicationtoprivatebankingasacorebusinesseithergloballyorregionally. GLOBALWINNERS BESTPRIVATEBANKINTHEWORLD J.P.MORGANPRIVATEBANK Foryears,changesinthehighnetworthmarketplacehavebeenpushingprivatebankingoutofitssilo—oroffitsSwissAlp—andtowardintegrationwithotherelementsoffinance.Highnetworthindividuals(HNWIs)havegrownmoreentrepreneurialandwanttheirwealthmanagerstoactsimultaneouslyastheirinvestmentbankers.Meanwhile,thepathtogettingrichhaswidened,elevatingtheimportanceofafeederpoolamongmass-affluentclients. J.P.Morgan,leaningonitspowerfulChaseretailarm,hasbeenoutaheadonbothofthesemegatrendsandkeepsinnovatingtostayahead.ArestructuringlatelastyeareffectivelymergedChasePrivateClient,anofferforbranchcustomerswithbalancesof$250,000ormore,withprivatebanking(the$25million-and-overcrowdstillhaveadivisionoftheirown).HNWIskeepgettingmoreanddeepermarketoptions:forinstance,aninternaltradingdeskforsharesinpre-IPOcompanies. J.P.MorganPrivateBankthinksbothlocallyandglobally,withsuccess.AggressivemarketingoftheChasebrandhasmadeitthehometownbankforHNWIclientsinNewYorkandelsewhereintheUSNortheast.Itwasalsotheamongthefastest-growingglobalbanksinAsiaduring2019,expandingassetsundermanagement(AUM)animpressive28%.AnditislengtheningitsLatinAmericanreachwitharaftofnewhiresinHoustonandMiami. EXCELLENCEINCRISIS:CLIENTSERVICES EMIRATESNBD Dubai’sbiggestbankandthefourthlargestlenderintheMiddleEast,EmiratesNBDdistinguisheditselfwithaswiftandinnovativeresponsetotheCovid-19pandemic.Actually,thebankenteredthecrisiswithadigitalheadstart,havingjustlastyearoverhauleditsbrandingandproductoffering. Thebank’scommitmenttodigitaltransformation—embodiedinitsnewaward-winningmotto,“Inspiringwhat’snext”—gaveitanedgeindeliveringfinancialservicesthroughthecrisis.Usingmobilebankingtoolsandcloudtechnology,itswitchedmostofitsoperationstoremotefunctioningwithinweeksofthefirstoutbreaksofthecoronavirus. BESTBOUTIQUEPRIVATEBANK LGTBANK Liechtenstein-basedLGT,whichcelebratedits100thanniversaryin2020,hasturnedaprofiteveryyearofitsexistence.Yetthesteadyperformer,controlledbytherulingfamilyoftheprincipality,isanythingbutcautious.IthasnearlydoubleditssizeoverthepastfiveyearswithastringofacquisitionsthatshifteditsfocusfromnumberedvaultsintheAlpstotheglobalgrowthnexusofAsia.AsianAUMgrewbyaneye-popping28.5%annuallyfrom2015to2019.At$231billionintotalAUM,LGTissmallenoughtoremainclosetoitsselectclientelebutbigenoughtoofferaglobalperspectiveandcapacity.LGTislookingtothefuture.Itwasanearlyentrantinsustainableinvesting,openingequityandbondfundswithsustainableobjectivesin2009.LGTLightstoneisthegroup’simpactinvestingplatform,andlastyearitacquiredanimpactinvestmentmanagerinIndiatopursueopportunitiesthere. MOSTINNOVATIVEPRIVATEBANK HANABANK SouthKorea’sHanaBankunderstandsthatinnovationisaboutmorethangadgets.InAsia,mostofthewealththatprivatebanksmanageiscreatedfromstill-activefamilybusinesses.Bankersthereforeserveessentiallythesameclientsascorporatelenders,investmentstrategistsandcounselorsoninheritanceandotherkeylifequestions.Hanawasanearlydigitaladopter,launchingitsonlineHanaPrivateBankingSystemin2011,andhasalsotargetedtheadvancedtechnologyrequiredtopursueastrategyofholisticintegration.Theeffortispayingoff:Privatebankingfundsmanagedforcorporatecustomersaregrowingbyathirdeachyear.Morerecently,HanaBankhasfocusedonexpandingthelifestylecomponentofitsprivatebankingoffering,addinganonlineglobalnetworkofrealestateadvisersforwealthyKoreanslookingtoeducatetheirchildrenabroadandanart-buyingchannelincollaborationwithSeoul’smostprestigiousauctionhouse. AdecadeofdeepeningvirtualcapabilityhasalsoenabledHanaBanktoleanintothecoronaviruspandemic,integratingitsinvestmentportalwithitsvideoconferencingsystemandaddingnewmoneymanagementoptionslikerealestateinvestmenttrustsandcurrencyswaps.Thegoalistobea“totallifesolutionprovider,”thebanksays,anditiscontinuallydevisinginnovativewaystogetthere. BESTPRIVATEBANKFORSOCIALRESPONSIBILITY BBVA Europehasembracedagreenfuturemoreenthusiasticallythananyotherregion;andBBVAisaleaderinfinancingthetransition,accordingtoaWorldResourcesInstitute2019report.TheSpanishfinancialservicesgroup,whosereachextendsto10countriesacrossNorthandSouthAmerica,isworkinghardtopersuadeits600,000-plusprivatebankingcustomerstofocusonsociallyresponsibleandsustainableinvestments.Ithasbuiltaportfoliomoduleaggregatingfundsacrosstheworldthataccentuatepositivemegatrendsfromhealthandwellbeingtodemographicsandlongevity,anditscoreseveryfunditmarketstoHNWIclientsonsustainabilitymetrics. That’sjustthestart,asBBVApushestowarditsgoalofmobilizing€100billion(about$119billion)insustainablefinanceby2025.Privatebankingclientsdonothavetocomealongfortheride,butBBVAistryingtomakethechoiceasattractiveaspossible. BESTPRIVATEBANKFORPHILANTHROPICSERVICES  BESTPRIVATEBANKENTREPRENEURS  BESTPRIVATEBANKFORNEWCUSTOMERSEGMENTS CREDITSUISSE CreditSuissegotofftoarockystartthisyearasCEOTidjaneThiamsteppeddowninFebruaryafteranescalatingcorporateespionagescandal.ButsuccessorThomasGottsteinmovedsmartlytoshoreupandaccelerateThiam’scorestrategy:puttingthebank’sglobalmarketsandinvestmentbankingreachattheserviceofHNWentrepreneursinthehopeofswelling“collaborationrevenues.” Tothisend,GottsteinbroughtinChristianMeissner,formerchiefofinvestmentbankingatBankofAmerica,toheadanewZurich-basedadvisoryunit“thatwilldomergersandcapitalmarketsdealswithcustomersoftheinternationalwealthbusiness.”Gottsteinalsotoldafinancialconferencethathe’sopen“tolookatacquisitionopportunities,especiallyinprivatebanking,”evenasrumorsswirledthatCreditSuissecoulditselfbeabsorbedbyitsgiantneighborUBS. FortunefavoredCreditSuissethisyear,astheCovid-19pandemicshiftedeconomicgravityfurthertowardAsia,thefocusofitsexpansionoverthepasthalfdecade.WithChinaaloneproducingmorethanoneIPOaday,Asianentrepreneursseempoisedtokeepdrivingwealthmanagementglobally;andCreditSuisseisintentongettingitsshareoftheirbusiness. WritingachecktoUniceforthelocalhospitalfailstosatisfythephilanthropicurgesofanincreasingnumberofprivatebankingclients.Theywantacharityprogramasindividualizedandgoal-orientedastheirinvestments.Butmostaretoobusywiththeirownbusinessestostudythecomplexglobalgivingmarket. CreditSuisseisaheadofthecurveonsteppingintothisgap.Onevehicleisits“umbrellafoundations,”threeheadquarteredathomebaseinSwitzerlandandafourthinSingapore.Theyprovideaready-madestructure,staffandexpertisefor“subfoundations”setupbyindividualclientsandfamilies.Jointlytheyhavefunneledsome$235milliontononprofitsoverthepastdecade. Thebanksetsanexamplebyfocusingitsownphilanthropyoncombattingilliteracyandsupportinggirls’educationindevelopingnations.African-bornThiambecameaglobalambassadorandfund-raiserforRoomtoRead,anNGOpushingtheseeffortsin16countries.Thebank’s14-yearpartnershipwithRoomtoReadisonepracticehissuccessorswillwanttocontinuewhilehelpingclientsboostthecausesclosesttotheirhearts. BESTPRIVATEBANKFORINTERGENERATIONALWEALTHMANAGEMENT  BESTPRIVATEBANKFORFAMILYOFFICESERVICES NORTHERNTRUST IntheUSheartland,homeoftheshort-terminvestor,NorthernTrusthasbeenplayingthelonggamefor130years.Atraditionalmanagerandcustodianforlargeinstitutionalassets,theChicago-basedbankwasamongthefirsttorealizethatmanyrichfamiliescommandinstitution-scalewealththatrequiresaspecialstructure:thefamilyoffice. NorthernTrusthasbuiltsteadilyonitspioneeringroleinmultigenerationalwealthmanagementanddidnottaketimeoffin2020.InJune,itlaunchedtheNorthernTrustInstitute,aresearchentitywithasemiacademicstructure.Ithassteadilyexpandedadivisionthatmanagesmoneyforfoundationsandnonprofits,keepingastepaheadoffamilyofficesrivals’growingphilanthropicefforts.WhilefocusedonitshomemarketinNorthAmerica,thebankalsomadenewhirestargetingLatinAmericaandtheUK.Theeffortsarepayingoff,asNorthernTrust’swealthmanagementearningshavecontinuedtorisein2020throughatoughyearofpandemicandshrinkinginterestincome. BESTPRIVATEBANKFORDIGITALCLIENTSOLUTIONS ITAÚPRIVATEBANK Privatebanksaroundtheworldtookontherolesofnewsproviderandsocialnetworkduringthispandemicyear,asclientssoughttrustworthyinformationandtheadviceofpeers.LatinAmericanprivatebankinggiantItaúUnibancojumpedintothevoid,providingmorethan200onlineconversationswithpublicfiguresanditsownexecutivesandanalysts.Despitetumultuousfinancialmarkets,ithired20newprivatebankingmanagersinthefirsthalfof2020,expandingitsfranchiseasothersretrenched.Themarketresponded,liftingprivatebankingincomeby11%inthefirsthalf. Recently,dataanalysishasbecometheinstitution’skeytocustomerinsightandthereforeservice.“Ourhugeinvestmentintechnologicalplatformsfacilitatedourclients’engagementwiththedigitalservicesweoffer,”saysLuizSeverianoRibeiro,theglobalheadofprivatebanking.“Ourclients’satisfactionkeptthesamelevelasin2019.Ourcustomersaredelightedtogetthroughthiscrisissowell.” BESTPRIVATEBANKFORISLAMICSERVICES MAYBANKPRIVATE Youmightnotknowitfromthenews,butjustover20%oftheworld’sMuslimsliveinArabcountries;mostresideinSouthandSoutheastAsia.ThatputsMaybank,headquarteredinMalaysiawithofficesin20mostlysurroundingcountries,inaperfectpositiontoservicethem.MaybankembedsShariah-compliantchannelsinabroaderworld-classprivatebankingoperation.“H.O.T.Broking”(Honestviews,Openingchannels,Transparentinformation),describedas“end-to-endShariah-inspiredequitiestrading,”isfullyintegratedwiththerestofMaybank’sonlineplatform.Theresultshavebeenpositive.Privatebankingclientnumbersjumpedby19%inthemostrecentfiscalyearandrevenuegrew17%,suggestingthatforalargeproviderwithapresencethroughouttheregion’sIslamiccommunity,Shariahhasstayingpower. BESTPRIVATEBANKFORBUSINESSOWNERS BTGPACTUAL Numerousglobalplayersarecommittedtoblendingprivateandinvestmentbanking,asmostnewwealthtodayisgeneratedbyentrepreneurswhoarestillraisingcashandmakingdealsfortheircorebusiness.NonedominatesitsmarketlikeBTGPactual.FromitshomebaseinBrazil,BTGhasexpandedtobecomethego-tofinancierforgrowingbusinessesacrossLatinAmerica.In2020,theravagesofthecoronavirusdidnothingtoslowdownthetrend.BrazilhaditsbiggestyearforIPOssince2007asrecord-lowinterestratespushedlocalsaversintostocks,anddomesticbankslikeBTGtookmostofthemandates. WhileBTGremainsasadistantrunner-uptoitscompatriotItaúinprivatebankingoverall,itaimstotripleitscurrent$41billioninAUMwithinfiveyears.Providingaone-stopshopforLatinAmericanbusinessisthepathitexpectswilltakeitthere. Forthesespecialclientsandtheirfamilies,theinstitutionhasbuiltatailor-madeprogramforsuccessionplanning,offeringaseriesofmeetingswithexperts.In2019,BTGalsorevieweditsstrategicguidelinesforinvestmentstoprioritizetwotopics:educationandtheenvironment.Beyonditssupportto30Brazilianinstitutionsactingintheseareas,thebankencouragesbusinessownerstoengagetheircompaniesinsociallyandenvironmentallyresponsibleprocedures. BESTPRIVATEBANKFORMILLENNIALS BESTPRIVATEBANKINEMERGINGMARKETS UBS UBS,themostvenerablepillaroftheprivatebankingestablishment,mightseemastrangechoiceforHNWmillennials.ButtheSwissbehemothleadstheindustryinwhattheyoungestclientsmaycaremostabout:sustainableinvesting.AccordingtoUBS’owndata,72%ofHNWIs18to34yearsoldintheUSintendtocommittoasustainablestrategy,comparedto6%ofthose65andup.UBShasbeenpreparingforthisshiftfordecades:20dedicatedprofessionalshelpmanage$488billionin“coresustainableassets.”Thebankdoubleddownin2020,bettingthepandemicwouldintensifywealthyclients’considerationoftheirinvestments’environmentalandsocialimpact.UBSofficiallydeclaredasustainabilitybias“thepreferredsolution”forlong-termportfoliomanagement,witharangeofstrategiesonofferfromwatertohealthcare. Ofthemanyremarkableprivatebankingstoriesinemergingmarkets,themoststrikingmaybeUBS’persistentdominance.TheSwiss-basedindustrygiantstillboastsnearlytwicetheAUMinAsiaasitsnearestrival,CreditSuisse,andafive-yearaveragegrowthrateof13.2%—amongthebestinthebusiness.SergioErmotticlosedoutahighlysuccessfulnine-yearrunasUBS’CEO—thebankerwhomade“boring”greatagain—in2020,justoverayearafterthecolossusofZurichimportedabundleofdynamisminthepersonofwealthmanagementco-headIqbalKhan,poachedfromCreditSuisse.Khanlookstobeshiftingfocustowardnewemergingmarkets—creatingnewdivisionstoserviceEasternEuropeandMiddleEast/Africawhileeliminatingstand-aloneprivatebankingintheUS,whereitsbankerswillshiftintothelargerwealthmanagementpractice.ErmottiwentoutonahighnoteasUBS’third-quarterearningsnearlydoubledandwealthmanagementnudgedupintoughcircumstances.WithKhancontinuinginhisnewrole,thefocusonprivatebankingappearstobesetforsometime. BESTPRIVATEBANKUSEOFTECHNOLOGY DBSPRIVATEBANK HowcanahomegrownSingaporebankcompetewiththegiantsofglobalprivatebankingastheyrefocusonagrowingAsianmarket?DBSCEOPiyushGuptagaveathree-wordanswerbackin2013:“Innovateordie.”DBShasbeeninnovatingeversince,drivingtheshiftto24/7digitalclientaccess.Its“Hack2Hire”programensuresasteadystreamoftalentednewnerdscomingonboardtodesignthenexttweakandoffering. Gupta’stroopswerenotidlein2020,evenwhileSingaporeauthoritieskeptthemoutofthehomeofficeformuchoftheyear.DBSlaunchedamajorupgradeofitscoreiWealthapp,offeringaneasier,moreintuitiveuserexperience.Itunveiledall-virtualaccountopeningforprivatebankingclientsinHongKong,shreddingthepaperworkthatweighsdowncustomeracquisitionacrossmuchoftheindustry.ItenhanceditsIntelligentBankingartificialintelligencesystem,addingfeatureslikeforeignexchangealertswhenshiftingcurrencyvaluesopentradingopportunitiesforglobalportfolios.Keepingwiththeworldwidetrendtolookdown-market,DBSteamedwithoutsidefintechstooffersegmentedproductsfordifferentwealthpoints:digiPortfolio,ahybridofrobotandpersonalizedassetmanagement;anditsnewNAVPlannerforretailinvestors.Otherbanksareinvestingheavilyinallthesedirections.ButDBSisstayingastepaheadbymakingthebesttechnologyitscoremission.Itsmotto:“Livemore.Bankless.” BESTPRIVATEBANKFORNETWORTHUNDER$1MILLION MORGANSTANLEY Longagloballeaderinmanagingmillionaires’money,MorganStanleyannouncedtwogiantstepsdown-marketin2020:theacquisitionsofmass-affluentbrokerageEatonVanceandofE*Trade,apioneerinonlineretailservices.Thedealsshouldputthebankaheadofoneoftheindustry’shottertrends:leveragingtechnologytointegratetraditional,white-gloveprivatebankingwithbroaderwealthmanagementinordertocapturethenextgenerationoftherichastheyclimbtheladder. MorganStanleyalreadyhadasolidplatformintheunder-$1millionspace,rootedinitsopportunisticgrabsofUSfranchisesDeanWitterandSmithBarneyduringearlierfinancialcrises.ItdominatesthestandardwealthadviserrankingscompiledbyForbesandBarron’s.AndmanagementhasbeenremarkablysteadyinanindustryaddictedtochurnasprivatebankCEOShelleyO’Connorcompletesher10thyearsinceshefirstbecameCEO. MorganStanleyhasnotneglectedforeignmarketseither.ItranksfourthbyAUMinAsia,andithasbeenhiringaggressivelyinMiamitograbLatinAmericanclients. BESTPRIVATEBANKFORNETWORTHBETWEEN$1MILLIONAND$24.9MILLION SANTANDER Formuchofthepastdecade,thefashioninprivatebankingfocusedonultrahighnetworth(UHNW)clientswith$25millionormoretoinvest.Thisyear,thependulumisswingingtheoppositeway,towardmass-affluentcustomerspossiblyontheirwaytomillionairestatus.The“merelyrich”inthemiddletendtobeneglected,butnotatSantander.Santander,whosebiggestmarketsareBrazilandtheUK,ishappytocount95%ofitsprivatebankingcustomersinthebelow€10millioncategory.Itsthresholdis€500,000,anditconcentrates,initsownwords,“onlyonclientstowhomprivatebankingbringsaddedvalue.”InitsPortugueseoperation,forexample,thatmeant17%fewercustomersfortheyearendinginJunebut5%moreinAUMandan11%increaseinnetprofit. Santanderlookstospoilitsmidmarketclientswithold-schoolprivatebankingbasedontherelationshipmanagerwhileleaningonitscommercialbankingreachtonurturethecorebusinesses.ThisapproachhasmadeitaleaderinPortugal,buttheprivatebankingfranchisehasplentyofroomtoexpandelsewhere.Santanderhas15timesasmanyretail/corporatecustomersinBrazilasinPortugalandeighttimesasmanyintheUK.AddaconsiderablefootprintintheUSandMexico,andaglobalplayermaybeontherise. BESTPRIVATEBANKFORNETWORTHOF$25MILLIONORMORE CITIPRIVATEBANK Citiisbuckingtheindustrytrendasitstickswiththestrategyitlaunchedadecadeago:restrictingitsprivatebanktocustomerswith$25millionliquidandup.Thebanklavishesthese“globalcitizens”withawealthof360-degree,anytime-anywhereservices,fromM&Ainvestmentbankingservicestoartadvisoryandsportsfinance.ItsexclusivefocusonUHNWIshasenabledCititocementmicrofranchisesamongsubgroupsliketheIndiandiasporaandUSlawfirmpartners. Asitssuper-richclientelemigratetoautonomousfamilyoffices,Citihasbecomeaserviceprovidertomorethan1,400suchoperationsinmorethan80countries.Itsannualsummit,the“Davosforfamilyoffices,”drewover4,000participantsthisyear:virtually,ofcourse.Next-generationprogramsareanotherareawhereCitiPrivateBankleads,althoughyouthgatheringsof2019inSanFrancisco,NewYork,andCambridgeintheUKwentonhiatusthisyear.Whilesuper-richglobalcitizenshavehadtolielowphysicallyin2020,surprisinglybuoyantmarketsandplentifuldeal-makinghavekepttheirmoneyasactiveasever,makingCiti’sprivatebankingstrategyasuccess. Facebook Twitter GooglePlus LinkedIn Mail Advertisement Thisarticleappearedinissue December2020 Advertisement