World's Best Private Banks 2022 | Global Finance Magazine

Assets under management at the top 25 global private banks swelled by 14% to $29 trillion in the year to June 30, 2021, according to ... 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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December06,2021 Author: AndrewSinger, CraigMellow Theglobalrichstuckbytheirbankers,evenastheprofession’straditionallifeblood—cozypersonalinteraction—abruptlystoppedflowing.Assetsundermanagementatthetop25globalprivatebanksswelledby14%to$29trillionintheyeartoJune30,2021,accordingtoconsultantAite-NovaricaGroup.“Thebiggestbanksandwealthmanagersprovedthemselvesquiteresilientandrobust,”saysMeghnaMukerjee,thefirm’sLondon-basedsenioranalyst.“Theyhaveremainedclosetocurrentclientsandmanagedtobringinnewclients.” Indeed,high-net-worthindividualsseemedtobecomemoreattachedtoprivatebankersaspandemic-relatedturmoilsweptthroughtheirbusinesses,familiesandportfolios.DIYfinancialmanagementwentoutoffashion;thefamilyconfidantecamebackin.“Oursurveysshowmorethan80%ofclientsaresatisfiedorverysatisfiedwiththeirbanks,”saysNalikaNanayakkara,wholeadsEY’swealthandassetmanagementpracticeinNewYork.“Advisersaresteppinguptobetrustedadvisers.” Amassiveshifttoonlinecommunicationmayproveablessingforbanksasacost-cuttingtool.“Productivityhasgoneupformanyprofessionalservices,”saysJillZucker,aseniorpartneratMcKinsey&CompanyinNewYork.“There’snotraveltime,andmuchlesstimelostrunningfrommeetingtomeeting.”IftheZoomeralastspost-pandemic,whichseemslikely,banksmayalsosaveoncompensationbyshiftingadvisersoutofthehighest-costfinancialcapitals,sheadds.  Moregoodnews:Thepandemic,andthesurprisingbullmarketthataccompaniedit,ignitedaworldwideinvestmentfeveramongnot-yet-richindividuals.UScitizensaloneopened29millionnewbrokerageaccounts,enthusiasmnotseensincethe1990s,Zuckersays. Thatwidensthefeederpoolforprivatebanks,andthisyearthebestofthemmasterednewmethodstofishinit.“Thefunnelhasopenedup,”Mukerjeesays.“Throughsocialmediaplatforms,adviserscanreachawholenewsetofclientstheyweren’tlookingforbefore.” Nevertheless,thisisnomomenttorestonlaurels.Potentialnewprivatebankingcustomersmaybeswarmingintoview,butnettingthemrequiressomethingofastrategicU-turnforanindustrythatspentthe2010sheadingupmarket.Thesuper-rich,$25million-pluselitethathavebeenprivatebankers’holygrailmaybegettingsuper-richer.Buttheirranksincreaseslowly,andtheirloyaltiesarestrong.“It’sgettingharderandhardertoswitchbig-ticketclients,”Mukerjeesays. Upforgrabs,bycontrast,areverylargenumbersof“massaffluent,”looselydefinedasthosewith$250,000to$1millioninliquidassets.“Withlimitedsuccessgeneratingorganicgrowth,privatebankexecutivesarerethinkingstrategytowardaffluentsegments,whereweobserveoverliquidity,”saysElizaZisopulu,anAmsterdam-baseddirectoratStrategy&,theconsultingarmofPricewaterhouseCoopers. Thisrethinkhasspurredsomeexpensivedownmarketacquisitions. MorganStanley,alreadytheworld’sNo.2globalwealthmanager,paid$13billionforUS-baseddigitalbrokerageE-Tradeinlate2020.No.4JPMorgancounteredlastsummerwithanannouncedacquisitionofUK-based“robo-advice”pioneerNutmeg.Theestimatedpricetagwas$1billion. Still,theprivatebankinggiantsfacestiffcompetitionfromthe“mom-and-pop”financialshopsthatareknownasregisteredinvestmentadvisors(RIA)inNorthAmericaorexternalassetmanagersinEurope.Thesametechnologyenablingprivatebankstoreachthemassaffluentallowstheseretailoperatorstoserviceever-biggerfortunes.“RIAshaveascaleandmomentumnowthatwehaven’tseenbefore,”McKinsey’sZuckersays. WealthBeyondBorders PrivatebankscrampedforgrowthintheirhomemarketshavelonglookedtoChina,wheredemandseemedinfinite.PersonalwealthinthePeople’sRepublicincreased17-foldfrom2000-2020to$120trillion,overtakingtheUS,McKinseyresearchfound.Yetglobalbanks’accesstothisgoldmineseemsincreasinglyconstrained. China’swealthengineitselfmaybesputteringasmacroeconomicgrowthslowsandBeijingtriestoreininpropertyprices,thecoreofnetworthfortherisingclasses.DomesticcompetitorslikeChinaMerchantsBankhavemeanwhiledevelopeddominantonshorefranchises.“There’sanawarenessthatChinaisanotoriouslydifficultmarket,andthedomesticbanksareverystrong,”Aite-Novarica’sMukerjeesays.Eventheless-crowdedpasturesthatbeckonfromacrossfast-growingSoutheastAsia—economieslikeIndonesiaandthePhilippines—requirefreshcommitmentsofstaffandculturalfocus. Tocompeteinthepost-pandemicnewnormal,privatebanksmayneedtomoveinoppositedirectionsalongthewealthscalesimultaneously.Fortheseriouslyrich,successfulbanksareenhancingtheirholisticofferingsbysynthesizingamelangeofservices—tax,legalandrealestateaswellasinvestment—thatRIAsandwirehousescan’tmatch,anddoingitwithoutquestionacrossborders.“It’sbecometheprivatebanker’sjobtomakearangeofservicesseamlessandaffordablefortheclient,”EY’sNanayakkarasays. Intheotherdirection,banksareworkingtoextendsomecrediblesemblanceofthiswhite-glovetreatmenttoabroader,merelyaffluentaudience,largelybyleveragingwhiz-bangtechnology.“Thegoalispersonalizationatscale,”Nanayakkarasays.“Clientsarewillingtopaymoreforfinancialservicesifyougivethemthat.” Personalization,onemightadd,thatcutsacrosscohortsthatvarywidelybygeography.TheaverageNorthAmericanorEuropeanprivatebankingclientisintheir60s,whilelivingintothe90sbecomescommonplace.Thenextbigwaveinthesetraditionalmarketswillbeelderlywidowsinheritingfrommoreelderlyhusbands,JillZuckersays.Millennialsareamoredistantconcernfornow. ThetypicalAsiancustomer,ontheotherhand,isafewdecadesyounger,stillactivelyinvolvedinmakingtheirfortuneandwonderingwhytheyshouldputcapitalintomarketsratherthanplowingitbackintotheirbusiness.   Ifpersonalizationatscalesoundsexpensive,itis—demandingbig,ongoinginvestmentsinsoftwareandadvisertraining.Whichmeanslifewillonlygettougherforthesmaller,“Swiss-style”privatebankingboutiques,caughtbetweentherisingindependentadvisersandthedemocratizinggiants.“Marketscontinuetoconsolidate,particularlyaffectingmidsizeplayerslackingaspecificsharpprofile,”saysAndreasPratz,apartneratStrategy&inMunich. Onepandemiceffectdoesseemuniversal,ifindefinite:Enforcedisolationandbreaksfromroutinesetlooseadrivetolivemoremeaningfully.Thosewhocanreconsiderdirectionandprioritiesaredoingso.Expertsdisagree,however,onhowmuchthatwilltranslateintomoremeaningfulfinanciallivesviaimpactinvesting,ESG,andsoon. Strategy&’sEuropeanconsultantsseeatectonicshiftrumblingunderunpreparedprivatebanks.“Thebiggestchallengewillbeadaptingtoclients’changingexpectations,includingonESG,”Pratzsays. AcrosstheAtlantic,intheUS,investingwithconscienceseemsmoretalkthanwalk.“There’salotofdiscussionaroundESG,butit’shardtosaythere’sgrowingdemand,”JillZuckersays.“Youneedtohavemorestandardsarounditforittobecomearequirement.” Lookingforward,hopefully,toapost-pandemicera,privatebankersdeserveapatonthebackforthechallengestheyhavefaced—followedbyasternlectureontheonesstillahead. Methodology:BehindtheRankings GlobalFinancestaffselectwinnersfortheseawardsbasedonentriessubmittedbybanks,companydocumentsandpublicfilings.Noproprietaryinformationwassoughtorsharedintheawardsprocess.Weconsiderlocalmarketknowledge,globalfootprintandinvestmentbreadthandsophistication.Becausemetricsarerarelypublicinthissensitivecorneroffinance,weincorporateperspectivefromanalystsandconsultants.PerformancedataarealsodrawnfromindustrysourcesincludingScorpioPartnership’sannualGlobalPrivateBankingBenchmarkandAsianPrivateBankermagazine’sregionalleaguetables.Sizeandgrowthareafactor,butGlobalFinancealsoconsideredcreativity,uniquenessofofferinganddedicationtoprivatebankingasacorebusinesseithergloballyorregionally. BESTPRIVATEBANKINTHEWORLD J.P.MorganPrivateBank Onemightadd“transparent”toadjectivesassociatedwithJ.P.MorganPrivateBank.Oneofthefewglobalbankstohavemadeprivatebankingareportablesegment,itpublishesfinancialsquarterlyforalltosee.Andthosefinancialsareimpressive. PrivateBankglobalrevenuewas$3.76billioninthefirsthalfof2021,up14%yearoveryear(YOY).Assetsundermanagement(AUM)intheprivatebankingclientsegmentreached$752billionasofJune30,2021,up19%YOY.Thebank’stotalAUM,includingglobalinstitutionalandglobalfundsclientsegments,were$3trillion,soprivatebankingcomposedaboutaquarteroftheinstitution’stotalAUM. Thebankwonprivatebankingaccoladesindiversegeographiesandclientsegments—intheUSandbeyond.Thisyear,thefirmtakeshomeGlobalFinance’sBestPrivateBankintheWorld—anawarditalsowonfor2021and2020.Thebankrecognizesthatmanyhigh-net-worth(HNW)clientsnowhaveenvironmental,socialandgovernance(ESG)–relatedinvestinggoals.Asaresult,itagreedinJunetopurchaseOpenInvest,avalues-basedinvestingplatformheadquarteredinSanFrancisco,whichwillallowtheprivatebanktocreatemorebespokeportfoliosforitsHNWclients. “Clientsareincreasinglyfocusedonunderstandingtheenvironmental,socialandgovernanceimpactoftheirportfoliosandusingthatinformationtomakeinvestmentdecisionsthatbetteralignwiththeirgoals,”saidMaryCallahanErdoes,CEOofJ.P.MorganChase’sAssetAndWealthManagementdivision,inastatementcommentingontheacquisition. BESTPRIVATEBANKFORSUSTAINABLEINVESTING UBS Switzerland’sgreatprivatebankingfirmsweren’tthefirsttojumponthesustainableinvestingbandwagon,butmanyareonboardnowandtravelingfast. UBS,oneoftheworld’slargestbankerstotherich,tookasignificantsteplastyearwhenUBSannouncedthatitwouldmakesustainableinvestmentsits“preferredsolution”forwealthmanagementclientsinvestingglobally.AccordingtoUBS,themovemadeit“thefirstmajorglobalfinancialinstitutiontorecommendsustainableovertraditionalsolutions”foritswealthclients,whohave$1.2trillionininvestedassets.Bytheendof2020,sustainableinvestmentscomposed18.9%ofUBS’advisedinvestments,upfromonly13.5%in2019. SustainableinvestmentshaveevensoaredamongUBS’Asia-Pacificregionwealthclientsrecently,havingrisento$4.5billionbytheendofJune2021,from$1billioninJanuary2020. Thebankisofferingclientsmoreinvestingoptions,too.InJuly,UBSannouncedthatitswealthmanagementclientscouldstarttailoringtheadvicetheyreceivealongsixsustainableinvestinglines:Climatechange;water;pollutionandwaste;people;productsandservices;andgovernance—areasthatthebankidentifiedas“mostimportanttodrivebusinessesandindustriestoasustainablefuture.” IncorporatingESG-basedofferingshasn’thurtprofitability,either.UBS’GlobalWealthManagementdivision,itslargestsegment,reported$4.2billioninpretaxprofitforthefirstninemonthsof2021,a34%increaseYOY. EXCELLENCEINCRISIS:CLIENTSERVICE  BESTTECHNOLOGYSOLUTIONFORPRIVATEBANKS HanaBank SouthKorea’sHanaBankusesemergingtechnologiestosupportitscradle-to-graveprivatebankingservices—andisn’tafraidtobeentertainingwhiledoingit. Inabank-producedvideo,alocalcelebrityexplainshowtoaccumulateandmanagewealthusingHanaBank’sprivatebankingservices.Thevideohasgeneratedmorethan100,000hitsonYouTube.Othervideosusethebank’sin-housetax,legal,realestateandtrustexpertstosuggestsolutionstothornyfinancialproblems. Thebankstatesitsbeliefthat“Clientswanttobeoffereddifferentiatedexperiencesacrosstheirwholelifestyleaswellasfinancialservices.”Andthisisn’trestrictedtoHNWclientsalone.“HBhasdevelopedinnovativedigitalprivatebankingservicesformasscustomersaswellasVIPcustomers,”accordingtobankofficials. IntheHNWsphere,thebankofferscustomizedservicesfortheentirefamily—notjusttheleaderorpatriarch.Thesemightincludekids’programsforthegrandchildrenand“match-making”helpfortheadultchildren,aswellasweddingandfuneralsupportservices.HanaBankhasalsolaunchedanewdigitalservicethatcombinesfinancewithdigitalgamestotargetup-and-comingmillennials.ItusedpopularKoreanonline-gamepublisherNetmarbletodevelopthegames. ThebankusedtechnologytoconnectwithclientsduringtheCovid-19crisis,launchinglife-careservicesthroughmobilesocialnetworkserviceslikeYouTubeandtheKakaotalkchannel. HanaBank’s731-personprivatebankingdivisionserves36,373clientsandgrewitsAUMto$58.3billionin2020,upfrom$56.6billioninthepreviousyear. BESTBOUTIQUEPRIVATEBANKINTHEWORLD FieldpointPrivate US-basedFieldpointPrivateisoneoftheworld’sfastest-growingwealthadvisoryandprivatebankingboutiques.In13years,ithasexpandedfromitsConnecticutrootsintoNewYorkCity,GeorgiaandFlorida—recentlysurpassing$5billioninwealthAUMand$1billioninbankbalance-sheetassets. “Cateringtohighlysuccessfulindividuals,families,businessesandinstitutions,”FieldpointPrivateofferswealthtransferadvice,taxplanning,aggregationandperformancereporting,riskmanagement,goals-basedinvestmentstrategies,investmentselection,personalizedbanking,customizedcreditofferings,bespokecustodyandtrustofferings,aswellasconciergeservices. RussellHolland,presidentandCEOofthefirm’sbankingunit,hasemphasizedthesymbioticnatureofthefirm’sbankingandwealthadvisoryofferings:i.e.,providingcommercialandpersonalbankingalongwithinvestmentadviceandwealthmanagement.“Byunderstandingthebigpictureforourclients,we’reabletotakecareofallthesmalldetails[,allowing]ourclientstofocuslessonthemechanicsoftheirfinancesandwealthandmoreonrunningtheirbusinessesandenjoyingtheirlives,”hesaidinanAugustpressrelease. MOSTINNOVATIVEPRIVATEBANKINTHEWORLD  BESTPRIVATEBANKFORDIGITALSOLUTIONS  BESTPRIVATEBANKUSEOFTECHNOLOGY DBSPrivateBank DBSwasapioneerindigitalclientofferingsyearsbeforetheCovid-19pandemic.Itwondigitaltransformationawardsduringthecrisis;andasthepandemicabates,itcontinuestoinnovate. Earlyinthecrisis,theSingaporeanbanklaunchedTeleAdvisory,whichallowsclientstoconsulttheirwealthplanningmanagersviavideoconferencingplatforms.DBSalsoestablishedapaperlesscreditsubmissionprocessandincreasedactiveengagementandmonitoringofcreditportfolioswithportfoliostress-testingdesignedtobetteranticipatepandemicchallenges. In2021,thebankaddedmorefeaturestoitsDBSdigibank(néeiWealthapp)—whichletswealthyclientsperformdailybankingtransactions,managetheirwealthandinvestanywherearoundtheclockviatheirsmartphones—includingartificialintelligence(AI)-drivensmarttriggersthatalertusersregardingkeyequityandforeignexchange(FX)pricemovements,aswellasofferstocksuggestionsbasedontheirindividualinvestmentsandpreferences. Today,90%ofprivatebankclientshaveaccesstodigitalservices,andmorethan90%ofequitypurchasesand40%offundandFXpurchasesareconducteddigitally. Ontheinnovationfront,thebanklaunchedtheDBSDigitalExchange,whichitannouncedinDecember2020andtooklivethefollowingmonth,afull-servicemembers-onlydigitalexchangefortradingandholdingdigitalassets,includingcryptocurrencies.DBSexpectstohave1,000usersbyyearendandestimates20%to30%annualgrowthforthenextthreeyears. Lookingahead,thebankanticipatesmoreuseofemergingtechnologieslikeAIandmachinelearningto“hyper-personalize”clientengagementthroughitsDBSdigibankplatformforself-directedonlineexecutionandClientConnect,aplatformforsmart-touchadvisory.Asaresult,DBS’globalprivatebankingclientassetsgrewby264billionSingaporedollars(about$195billion)in2020,up7%YOY,whilefeeincomeinitswealthbusinessincreased11%. BESTPRIVATEBANKFORSOCIALRESPONSIBILITY BBVA SocialresponsibilityisnothingnewforSpain’sBBVA.Itintroduceditsfirstsociallyresponsibleinvestingvehicle,theBBVASolidaridadfund,in1999;andit’sstillfindingwaystocombinedoingwellwithdoinggood.Recently,thebankintroducedasociallyresponsibleinvestmentfundthatdonatespartofitsmanagementfeeeachyeartosustainableprojects. BBVAisnowextendingitssustainabilityandimpactinvestmentoptionstoitsprivatebankingcustomers.BBVA’sprivatebankscollectivelyhavemorethan84,000customersinSpain,Mexico,Portugal,Argentina,Peru,Switzerland,Turkey,Colombia,UruguayandVenezuela;sothisisnotaninsignificantcohort.Theprivatebanksmanage€96billion(about$109billion)globally. Throughtheyears,BBVAhaswonnumerousawardsforESG,includingGlobalFinance’sFinancialLeadershipinSustainingCommunitiesglobalawardearlierthisyear.In2018,BBVAissuedtheeurozone’slargest-everseniorgreenbond. BESTPRIVATEBANKFORPHILANTHROPICSERVICES BankofAmerica BankofAmerica’s(BofA’s)philanthropicrootsrundeep.TheUSbankhasbeenaninvestmentadvisertoendowmentsandfoundationsfor160years.Italsohas200dedicatedphilanthropicspecialists,manywith10years’experienceormore,whoprovideabroadpaletteofservices,includinginvestmentoutsourcing,consultingandadvisory,administrativeservicesandspecialtyassetmanagement. Thephilanthropicgrouphasalsobeengenerouswithitstimeandservicesinternally,sharingitsexpertisewithbankclientsofotherBofAdivisions.Thegrouprecentlypartneredwiththehealthcare,educationandnonprofitgroupwithinBofA’sGlobalCommercialBank. Inthefirsthalfof2021,thegroupbroughtinrecordnewphilanthropicAUMmandatesof$4.7billion,asolidcontributiontothe$50billioninAUMthattheprivatebankcurrentlymanagesfornonprofits,foundationsandendowments.Overthepastfiveyears,thePhilanthropicSolutionsgrouphasnotched40%growthinsalesand65%growthinAUM. BESTPRIVATEBANKFORINTERGENERATIONALWEALTHMANAGEMENT BESTPRIVATEBANKORWEALTHMANAGERFORNETWORTHUNDER$1MILLION  Santander BancoSantander’sglobalprivatebankingarmserves217,600clientsin11countries.ItispartoftheSpanishbank’sWealthManagementandInsurancedivision,whichhasprosperedsincebeingconsolidatedunderVictorMatarranz,itsglobalhead,fouryearsago. Asofthethirdquarterthisyear,thedivision’sAUMwereup12%comparedwithayearearlier,whileitstotalcontributiontogroupearningswas16%higher. Matarranzhasbeenglobalizingthedivision’sofferingsandexpandingtheprivatebanksegment,whichservesultrahigh-net-worth(UHNW)clientswithmorethan€20millioninassets.Santandernowhassome2,000UHNWfamiliesglobally;andonsomeofitsoffshoreplatforms,suchasintheUS,SwitzerlandandtheBahamas,halfoftheassetsbelongtoUHNWclients. Intergenerationalwealthhasbeenabigfocusattheprivatebank,whichaspirestoserviceitsUHNWclientfamiliesbefore,duringandaftergenerationalwealthtransferoccurs.Acriticalmomentinthisprocessisthefirsttimeapersonofanewgenerationattendsafamilyofficemeeting,accordingtoMatarranzsays.Thatpersonoftenasksquestions,whichcanbedisconcertingtoafamilypatriarchwhohaslongmanagedafamily’swealthunchallenged.Still,itcanbecomealearningprocessforallinvolved. Onekeytotheprivatebank’ssuccessisitsgeographicbreadth,enablingittoprovideclientsthesameserviceoutsidetheircountriesoforiginandinallothermarkets.Forexample,itspopularinvestmentfund,SantanderFutureWealth,wasdevelopedbythegroup’sfundmanager,SantanderAssetManagementLuxembourg,butwassubsequentlymarketedinthegroup’sothermarkets,includingChile,Germany,Poland,Portugal,Spain,Switzerland,theUKandtheUS. BESTPRIVATEBANKFORBUSINESSOWNERS BTGPactualWealthManagement Inregulartimes,BTGPactualisoneofLatinAmerica’smostprolificbusinesslenders;but2020,roiledbytheCovid-19pandemic,wasn’tatypicalyear.Businessessufferedfrommandatedlockdowns,frightenedcustomersandhamstrungsuppliers. FortunatelyformanybusinessesinBrazil,Chile,ColombiaandotherLatinAmericancountries,BTGPactualWealthManagementstoodbyitsclients,providinghigh-qualityinformation,adviceandliquiditytosupportthem. Thebankmaintainedexceptionallyhighlevelsofliquidityduringtheyear,withrecordcashflowsandoneofthehighestBaselratiosinitspeergroup.Thisfinancialpositionlettheinstitutionincreaseitscreditofferingswhenbusinessesneededthemmost.BTGPactual’slendingportfoliogrewby68%throughtheyear,primarilyconsistingofloanstohighlyprofitablecounterparties. Itswealthiercustomersappreciatedtheeffort,sothatwealthmanagementAUMandcustodystoodat153.9billionBrazilianreais(approximately$27.8billion)attheendof2020,a33%YOYincreaseundertryingcircumstances.Itswealthunitalsoadded30newteammembers,expandingthestaffby20%. BESTPRIVATEBANKFORFAMILYOFFICESERVICES BESTPRIVATEBANKFORNETWORTHOF$25MILLIONORMORE  CitiPrivateBank Withsome500privatebankersandmorethan700investmentspecialists,CitiPrivateBank(CPB)deliverstailoredfinancialservicestoapproximately13,000clients,including1,400familyofficesandaquarteroftheworld’sbillionaires. CPBrevenueswere$2.02billioninthefirsthalfof2021,up6%fromthesameperiodin2020.ThebankalsoincreaseditsaverageUHNWnewclientnetworthtomorethan$500million,or30%greaterthantheprioryear. Thatsaid,CPBhasn’tmadeanameservingtheUHNWsegment—workingexclusivelywithclientswhosenetworthis$25millionormore—withoutbringingsomeimaginationtobear,especiallyin2020whenremoteworkingbecamethenorm. Intheabsenceofin-personclientevents,CPB“reimaginedourclienteventsforthevirtualworld,hostinghundredsofvirtualeventsin2020,”accordingtobankofficials.Theseincludedsmall-scaleeventslikewealthplanningdiscussionsandESGinvestingpanelsaswellaslarge-audiencevirtualconferences.Byexpandingitsvirtualenvironment,CPBreachedarecordnumberofclients. Theprivatebankoffersseveralspecialtiesthatdifferentiateitfromotherfamilyofficesandprivatebanks,includingartadvisory,sportsfinanceandadvisory,andaircraftfinance. Thesuccessofitsprivatebanknotwithstanding,Citihasloosenedupabitonthewealthmanagementfrontlately,payingmoreattentiontothemassaffluentcustomersegmentandcreatingaunifiedwealthmanagementsegmentsinceJanuary2021.It’sarecognitionthattoday’smassaffluentcustomerscanbecometomorrow’sHNWclients,orsometimesevenUHNWs. BESTPRIVATEBANKFORENTREPRENEURS KotakMahindra OneofIndia’soldestprivatebankers,KotakMahindrareportedlymanageswealthfor51%ofthatnation’s100wealthiestfamilies. However,theMumbai-basedbankhasalsobeenoutspokenregardingtheneedtonurtureIndia’sup-and-comingbusinessclass.Tothisend,KotakWealthManagementhasdevelopedspecificprogramsformillennialandfemaleentrepreneurs.Forinstance,thebankinvitestheseyoungergroupstoattendmeetingswithsuccessfulentrepreneursandprofessionalswhosharetheirinsights,encouragingnetworking. “KotakWealthbelievesthatonlywhenwomenbegintoachievetheirtrueeconomicpotentialwillIndiaachieveitsfullgrowthpotential,”accordingtobankofficials.Tohelpwithitsmission,thebankhaspublishedaseriesofreportsonthattopic,includingonefeaturingIndia’stop100activewomenentrepreneurs,thatseekto“analyzeandunderstandtheevolutionofkeywealthcreationtrendsamongwomen,”andtohighlighttheirsuccessstoriesandtheircontributionatlarge. BESTPRIVATEBANKINEMERGINGMARKETS J.SafraSarasin InearlyMay,theSwiss-BrazilianprivatebankJ.SafraSarasinannouncedthecompletionofitsdealtoacquiretheprivatebankingbusinessinHongKongandSingaporeoftheBankofMontreal(BMO).TheconsensuswasthatBMO’sdiversifiedclientbaseofUHNWclientswouldbeagoodmatchforJ.SafraSarasin,whichwaslookingtoexpanditsfootprintinAsia. TheBasel-basedbankgroupreported192.4billionSwissfrancs(approximately$208billion)inAUMattheendof2020,upfrom185.8billionfrancsin2019.MostofthatwasinSwitzerland(100.1billionfrancs),followedbyEurope(exclusiveofSwitzerland,54.5billionfrancs)andAsia(18.1billionfrancs).Thatlastcomponentwillsurelygrow. BMO’sAsianbusinesslinesprobablyarenotJ.SafraSarasin’slastacquisition.Itsinternationalgrowthstrategyiswelldocumented.Injustabouteveryannualreportsince2014,thebankhasdeclareditis“hungryfordeals”andhassurpassedallofitsSwisspeers,exceptforJuliusBaer. Thebank’stargetingoftheSingaporeanmarketcomesasnosurprisetoAndreasPratz,apartnerinPwC’sglobalstrategyconsultingbusiness.“EuropeandNorthAmericacontinuetoberelevantprivatebankingmarkets;yetSingapore,inparticular,hasfirmlyestablisheditselfasahub.” BESTPRIVATEBANKFORNEWCUSTOMERSEGMENTS PNCPrivateBank ManyexpectPNCFinancial’spurchaseofBBVAUSABancsharestocatapultPNCBankintoahigherechelonofprivatebankingfirms,expandingitscustomersegmentsandturbochargingPNC’sfamilyofficeservicesfortheultrawealthy. ItsJuneacquisitionmadePittsburgh’sPNCthefifth-largestcommercialbankintheUS,with$560billioninbalance-sheetassetsandacoast-to-coastnationalfranchise.ItalsobroughtwithitBBVA’sUSwealthmanagementbusiness—andaperennialGlobalFinanceprivatebankwinnerintheUSSouthwestregion,winningthetitleforthepastfouryears.Inaddition,PNCrebrandeditswealthmanagementbusinessandBBVAUSAtoPNCPrivateBank. DonHeberle,whoheadsPNCPrivateBank,saysthatPNChasbeenexpandingitsprivatebankingreachintwoprimaryways:Geographically,asitdidwithitsrecentpurchaseofBBVAUSA,“whichallowsustohaveacoast-to-coastfranchise,giventheirpresenceintheUSSouthwestandWest”;andalsobyaddingnewcustomersegmentsandstaffallalongthewealthspectrum,including“individualswhoarejustbeginningtheirwealthaccumulationjourneys,suchascorporateexecutives,doctors,lawyersandothers,throughtolargerfamiliesandfamilyoffices.” BESTPRIVATEBANKFORNETWORTHBETWEEN$1MILLIONAND$24.9MILLION ScotiaWealthManagement ScotiabankisCanada’sthird-largestbank,withmorethan90,000employeesandbalancesheetassetsofsome$1.2trillion.ItsGlobalWealthManagementdivisionservesmorethan1.5millioninvestmentfundandadvisoryclientsacross13countries,manyoftheminLatinAmericaandtheCaribbean. ScotiaWealthManagement,theprivatebankingsegment,had$344billioninAUMasofthethirdquarterofthisyear,a17%YOYgain;andanetincomeof$397million,a20%YOYadvance. Thedivisionoffersabroadrangeofservices,includinginvestmentmanagement,privatebanking,estateandtrust,aswellasseveralmore-specializedserviceslikeinsuranceplanning.ThebankservestheUHNWsegmentthroughitsGlobalFamilyOfficeGroup. Scotiaalsohasanunusualbutthrivingphysician-focusedwealthmanagementunit—MDFinancialManagement—thatitacquiredin2018as“theonlynationalfinancialservicesfirmdedicatedexclusivelytothefinancialwell-beingofCanada’sphysiciansandtheirfamilies,”accordingtothebank.Thespecializedwealthmanagerreportedmorethan$59billioninAUMasofJuly29,2021. Recently,ScotiaannouncedthatitislookingforacquisitionsintheUStoexpanditswealthmanagementbusiness.Canadianbankscontinuetostruggleagainstweakloangrowthandtightprofitmarginsduetohistoriclowinterestrates.   Facebook Twitter GooglePlus LinkedIn Mail Advertisement Thisarticleappearedinissue December2021 NextArticle> Advertisement