DOCSLIB.ORG

October 21, 1998

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
October 21, 1998 Texas Department of Banking Testimony Testimony Of Catherine A. Ghiglieri, Banking Commissioner State Of Texas Before The House Interim Financial Institutions Committee Atm Operations Date: October 21, 1998 INTRODUCTION Thank you for the opportunity to address this Committee regarding automated teller machines, or ATMs, operating in Texas. I will discuss the current laws relating to ATMs, the status of the Finance Commission study, the impact of the Year 2000 on ATM operations, related consumer issues, and my recommendations for legislative consideration. BACKGROUND Laws Concerning ATMs In Texas: In Texas, laws related to ATMs are limited, and no statutory or regulatory restrictions exist on the amount of fees charged to users of ATMs. The Texas Constitution (Article XVI, Sec. 16(b)) restricts a state or national bank to establishing and operating ATMs in the county of its domicile, but this provision has long been preempted by federal law. (See Appendix for statutes and rules cited here.) Any person may own and operate an ATM anywhere in the state (Texas Finance Code Sec. 59.201). A depository institution may operate a proprietary ATM or it may permit other depository institutions to share the use its ATM, but if shared it must be shared on a non-discriminatory basis and usage charges imposed must be fair, reasonable, and non- discriminatory among the institutions (Texas Finance Code Sec. 59.201). Owners and operators of ATMs must take steps to evaluate and meet minimum standards for the safety of each ATM they own, and issuers of ATM cards must notify customers of basic safety precautions the customer should follow while utilizing an ATM (Texas Finance Code Secs. 59.301-59.310; 7 TAC Sec. 3.92). Texas law requires notification to the customer before a fee is charged, although no mechanism for enforcement currently exists. The owner of an ATM that is connected to a shared network may impose a fee if it is disclosed at a time and in a manner that allows a user to avoid the transaction without incurring the transaction fee (Texas Finance Code Sec. 59.202). The Texas Racing Commission has adopted a rule requiring ATMs at racetracks to be licensed by the Racing Commission. In addition, a customer at a race track may make withdrawals only from a checking account, in amounts no more than $200 per day. For each transaction at a racetrack ATM, a pre-disclosed statutory fee of $1.00 must be withdrawn from the customer's account, in addition to any other fees authorized and imposed by the network and its financial institution participants, for deposit into the Texas State Treasury (Texas Racing Act,Sec. 11.04(e); 16 TAC Sec. 309.32). Attempts to Regulate ATM Fees: In the past year, almost every state legislature and the federal Congress considered some form of legislation that addressed ATM fees. Only two states actually passed legislation, but neither bill prohibited or limited fees. Maryland passed a fee disclosure provision, similar to our law. Georgia adopted a bill that amended its antitrust law to authorize agreements among institutions not to charge a fee at shared ATMs. Two states specifically limit fees. Mississippi caps fees at $2.00 or four percent of the transaction amount, whichever is greater. Wyoming has a statutory limit of $2.00 but the state banking commissioner has the authority to revise the limit by regulation, and did limit the fee to $1.00 in 1995. Two more states, Iowa and Connecticut, have legal opinions prohibiting ATM fees. Both of these states are currently in litigation over this issue, challenged by national banks and the Office of the Comptroller of the Currency. In practice, ATM fees are rising. The federal General Accounting Office recently reported that the average fee has increased 50% to $1.50. According to the United States Public Interest Research Group, the number of banks that charge fees has increased 45% from 1997-1998. The practice of charging fees differs on average between large national banks and small banks. Eighty-three percent of large banks charge a fee averaging $1.35, while only 63% of small banks charge a fee, averaging $1.16. ATMs at the State Fair of Texas this year charged $3.25 per transaction. FINANCE COMMISSION STUDY In 1995, as part of the rewrite of the banking laws, the Finance Commission was required to perform a study of the availability, quality and pricing of financial services to consumers, agribusiness, and small business in Texas. Texas Finance Code Sec. 11.305. Because of the breadth of this mandate and the attendant costs, the Finance Commission decided to perform one portion of this study at a time. In April, the Finance Commission contracted with Empirical Management Services, Inc. of Houston to conduct a study of the availability, quality and pricing of cash and depository services to consumers in Texas. The study is scheduled to be completed on November 30, 1998 and is based upon the results of random telephone surveys and face-to-face interviews with consumers in eight areas of the State. In addition, focus groups were held with consumers and financial institutions, and mail surveys were sent to financial service providers. The interview questions included items relating to the use of ATMs and the associated fees. IMPACT OF THE YEAR 2000 ON THE USE OF ATMS The Year 2000 (or Y2K) problem is the potential failure of information technology as a result of the year date changing from 1999 to 2000. This potential exists because of past practice of using two digits, not four, to represent the year in computer databases, software applications, and hardware chips. In the year 2000, outdated information technology will be unable to differentiate the year 2000 from the year 1900. According to our review and the review of other bank regulatory agencies, banks are making substantial headway toward resolving their Y2K computer problems. The main impact of any Y2K computer glitches in the use of ATMs would be to prevent access to cash by the consumer through the ATM. However, even if an ATM does not work, the consumer will still be able to go into the bank to withdraw money or cash a check. The Federal Reserve System Board of Governors anticipates that the worry about cash accessibility may cause some consumers to withdraw larger amounts of money from their accounts near the end of the year, and has ordered an approximate 25% increase in available cash to accommodate this possibility. If some ATMs are temporarily dysfunctional, we anticipate that the problems will be relatively short-lived. CONSUMER COMPLAINTS REGARDING ATMs Shortly after the widespread use of ATM fees began, the Department received numerous consumer complaints regarding the amount of the charges. Because of required disclosures on bank-owned ATMs, these complaints have become almost non-existent. Many consumers have altered their ATM use to avoid the surcharges. Other ATM-related complaints include unauthorized withdrawals, erroneous receipts, inexact amount of cash disbursed, and lack of up- to-date balances presented on ATM screens. However, given the number of transactions conducted at ATMs, consumer complaints to our Department are extremely limited. RECOMMENDATIONS FOR LEGISLATIVE CONSIDERATIONI have several recommendations to improve ATM regulation in Texas, other than regulation of the fees charged. Unless an ATM is owned by a depository institution, no regulatory oversight of the operation of the ATM currently exists in Texas law, and regulatory oversight is needed in at least two circumstances. First, no enforcement authority exists over non-bank owned ATMs to compel compliance with state law requiring disclosure of the surcharges prior to completion of the transaction. Many states do not permit ATMs unless they are owned and operated by financial institutions, but because Texas does not so restrict ATM ownership, there is a loophole in regulatory authority. Second, the owner or operator of an ATM is not required to disclose its name, address, or a contact telephone number in case of a problem with the ATM transaction. If such a requirement was imposed by law, with suitable enforcement authority to compel compliance, a consumer would be able to contact the appropriate party if, for example, a non-bank owned ATM at a service station disburses $10 instead of $100 and the receipt states that $100 was disbursed. Without such disclosure, neither the customer nor the service station employee knows whom to contact. CONCLUSION: ATMs provide the consumer with a convenience and a service in Texas. Much has been done by the Texas Legislature to ensure the safety of the consumer at an ATM, and to ensure that a fee cannot be charged without giving the consumer a chance to reject the transaction request. Several areas of concern remain, however, regarding the non-bank owned ATMs, which could be remedied by legislation. I would be happy to answer any questions that you may have. APPENDIX TO THE TESTIMONY OF CATHERINE A. GHIGLIERI, BANKING COMMISSIONER, STATE OF TEXAS, BEFORE THE HOUSE INTERIM FINANCIAL INSTITUTIONS COMMITTEE, ATM OPERATIONS OCTOBER 21, 1998 The Texas Constitution, Article XVI, Sec. 16(b) (b) If it finds that the convenience of the public will be served thereby, the Legislature may authorize State and national banks to establish and operate unmanned teller machines within the county or city of their domicile. Such machines may perform all banking functions. Banks which are domiciled within a city lying in two or more counties may be permitted to establish and operate unmanned teller machines within both the city and the county of their domicile. The Legislature shall provide that a bank shall have the right to share in the use of these teller machines, not situated at a banking house, which are located within the county or the city of the bank's domicile, on a reasonable, nondiscriminatory basis, consistent with anti-trust laws.
Load more

Recommended publications
  • Press Release: Global Finance Names the World's Best Private
    Global Finance Names The World’s Best Private Banks 2019 NEW YORK, October 22, 2018 — Global Finance magazine has announced its fourth annual World’s Best Private Banks Awards for 2019. A full report on the selections will appear in the December issue of Global Finance, and winners will be honored at an Awards Dinner at the Harvard Club of New York City on February 5th, 2019. About Global Finance The winners are those banks that best serve the specialized needs of Global Finance, founded in 1987, has a circulation of high-net-worth individuals as they seek to enhance, preserve and pass 50,050 and readers in 188 on their wealth. The winners are not always the biggest institutions, but countries. Global Finance’s rather the best—those with qualities that individuals rate highly when audience includes senior corporate and financial choosing a provider. officers responsible for making investment and strategic Global Finance’s editorial board selected the winners for the Private Bank decisions at multinational companies and financial Awards with input from executives and industry insiders. The editors institutions. Its website — also use information from entries submitted by banks, in addition to GFMag.com — offers analysis independent research, to evaluate a series of objective and subjective and articles that are the legacy of 31 years of experience factors. This year’s ratings were based on performance during the period in international financial covering July 1, 2017 through June 30, 2018. markets. Global Finance is headquartered in New York, with offices around the world. “Recent decades have minted unprecedented new ranks of millionaires Global Finance regularly selects and billionaires around the world, and they bring a new set of beliefs and the top performers among attitudes toward wealth.
    [Show full text]
  • J.P. Morgan Private Bank Privacy Notice for U.S. Clients
    The Private Bank Respecting and protecting client privacy have always been vital to our relationships with clients. The attached Privacy Notice, in a format recommended by federal regulators, describes how J.P. Morgan Private Bank keeps client information private and secure and uses it to serve you better. As shown, the J.P. Morgan companies that provide private banking services do not use client information for purposes not related to the Private Bank. Additionally, we keep your information under physical, electronic and procedural controls, and authorize our agents and contractors to get information about you only when they need it to do their work for us. The Private Bank uses information we have about you in order to make private banking products and services available to you through the Private Bank, including loans, deposits and investments, to meet your private banking needs. Using your information in this way, through the authorization you provided as part of your private banking application, may qualify you for account upgrades, improved client services and new service offerings based on our more complete knowledge of your relationship with the Private Bank. The Private Bank is a part of J.P. Morgan Asset & Wealth Management (the brand name for the asset and wealth management businesses of JPMorgan Chase & Co.) and provides private banking services for Private Bank clients. The Private Bank includes those units of JPMorgan Chase Bank, N.A., J.P. Morgan Trust Company of Delaware and J.P. Morgan Securities LLC dedicated to the Private Bank, as well as alternative investment funds offered through the Private Bank.
    [Show full text]
  • GOLDMAN SACHS PRIVATE BANK SELECT a Digital Lending Solution
    GOLDMAN SACHS PRIVATE BANK SELECT® A digital lending solution INTRODUCING GOLDMAN SACHS PRIVATE BANK SELECT Goldman Sachs Private Bank Select® (“GS Select”) is a securities-based lending solution that uses diversified, non- POTENTIAL USES retirement investment assets as collateral for your loan. Our digital platform allows you to quickly and seamlessly PERSONAL establish a revolving line of credit, providing easy access to liquidity. Our high-tech, high-touch servicing ensures easy Education mangement of your loan. Home renovations Tax obligations LOAN FEATURES BUSINESS SIZE: From $75,000 to $25 million, with an initial minimum loan advance requirement of $75,000 and subsequent drawdowns Acquisitions starting at $2,500 Liquidity USE: Any purpose other than purchasing or carrying margin stock Seed/startup capital TYPE: Revolving line of credit; you can borrow, repay, and re-borrow as needed BORROWER: Individuals and joint; irrevocable and revocable trusts POTENTIAL BENEFITS COLLATERAL: Non-retirement investment assets, including stocks, bonds, mutual funds, and exchange-traded funds Immediate and ongoing access to cash INTEREST RATE: 1-month LIBOR plus a spread determined by loan amount; LIBOR resets monthly Expedited loan processing, often within REPAYMENT: Interest only, payable monthly; principal can be 24 hours repaid at any time without penalty TERM: No maturity date; repayment can be demanded at any time High-tech, high-touch servicing and support by FEES: No application, origination, or annual fees phone, in person, and online DOCUMENTS: No personal financial statements, tax returns, paper applications, or other documents; trust documents not required in most states Securities-based loans may not be suitable for all borrowers/pledgors and carry a number of risks, including but not limited to the risk of a market downturn, tax implications if pledged securities are liquidated, and an increase in interest rates.
    [Show full text]
  • Wealth Management and Private Banking Connecting with Clients and Reinventing the Value Proposition 2015 Contents
    Wealth Management and Private Banking Connecting with clients and reinventing the value proposition 2015 Contents This document provides a perspective on the evolution of client value propositions in Wealth Management & Private Banking 3 Foreword 4 Scope and reach 6 Snapshot of key messages 8 Executive Summary 16 Strategic priorities 20 Products and services 26 Channels 36 Pricing 40 Our International Wealth Management & Private Banking practice at a glance 41 Our services 42 Key contributors 43 Contacts 2 Foreword Dear Readers, Deloitte and Efma are pleased to present you the results of our recent survey, providing a perspective on the evolution of client value propositions in Wealth Management and Private Banking. We invite you to consider the challenges facing the industry and how players are adapting their value proposition and connecting with clients in the new landscape. In the past few years, the Wealth Management and Private Banking industries have changed significantly. The financial crisis has increased investors’ sensitivity to risk, and the current low yield environment has made it more challenging to meet investors’ expectations of returns while limiting risk. In addition, the pressure for global tax transparency from governments around the world to crack down on tax evasion and tax fraud, has caused a significant shift from offshore to onshore wealth. The frontiers of demand are also being pushed beyond traditional borders, with emerging market players entering developed markets to follow their clients, and developed market players seeking growth outside of their home markets. This has resulted in volume losses (e.g. wealth repatriation) and/or decreased revenue margins as fiscal arbitrages have become obsolete and competition for onshore assets has increased.
    [Show full text]
  • The Voice of the Private Banks
    The voice of the private banks The Association of German Banks Banking world in figures €70,200,000,000,000 €70.2 trillion turnover in cashless payments in 2012 Number of online accounts million at private banks in 2012 18.4 80% million Private banks’ share securities accounts at of total export finance 10.6 private banks in 2010 million Number of bank cards 26.2 at private banks in 2011 Number of persons employed at the Association of German 176,000 Banks’ member banks in 2012 € billion Financial assets of private 4,939 households in 2012 Banking world in figures €2,012,329,000,000 Total assets of the Association of German Banks’ largest member bank in 2012: €2 trillion € million Total assets of the Association of 10 German Banks’ smallest member banks €1,044.9 billion German bank loans to private individuals in 2012 €1,377.6 billion German bank loans to businesses and self-employed persons in 2012 Over complaints handled since the launch of the 70,000 Ombudsman Scheme in 1992 participants in the Association of German Banks’ Schul|Banker 60,000 bank management game since 1998 Number of mentions of the Association of German Banks in the media in 2012 2,045 Number of participants in the Association of German Banks’ “Jugend und Wirtschaft” competition since it was launched in 2000 18,000 100.4 million bank customer cards in Germany in 2012 billion cashless payment 18.2 transactions in 2012 9,905 domestic branches of private banks in 2012 2,232 information notices to member banks in 2012 branches of private banks 388 abroad in 2012 Number of current accounts million at private banks in 2012 26.9 Market share of private banks, measured in terms 38% of the total volume of banking business in Germany The voice of the private banks The Association of German Banks 6 The voice of the private banks bankenverband Foreword Responsible lobbyist prosperity in Germany.
    [Show full text]
  • RMB Private Bank Pricing Guide 2017
    HOME Introduction PRICING GUIDE Ways to bank 1 July 2017 – 30 June 2018 eBucks Rewards and benefits RMB Private Bank accounts RMB Private Bank Fusion Account Cheque Account & Single Facility RMB Private Bank Credit Card Offshore Banking & Global Accounts Foreign Exchange Private Business Account Single Fee Pricing Option Pay-As-You-Use Pricing Option Cash Bundle Home Loan, Structured Loan, Securities Based Loan and Single Credit Facility Important information Standard Terminology Contact us RMB Private Bank - a division of FirstRand Bank Limited. Authorised Financial Services and Credit Provider (NCRCP20). Reg. No. 1929/001225/06. Home INTRODUCTION INTRODUCTION YOUR PARTNER ON YOUR WEALTH AND solutions and advice for you. We understand Ways to bank LEGACY MANAGEMENT JOURNEY the intricacies of wealth and will help guide you through the complexities of today’s financial world while complementing your eBucks Rewards and benefits This pricing guide will assist you in At RMB Private Bank we aim to give you an lifestyle through our award-winning eBucks understanding your bank charges and help expert view of your finances coupled with Rewards programme so that you can enjoy, RMB Private Bank accounts you make banking choices that enable you to insightful, advice-led solutions for you and manage, protect and grow your wealth for get the most out of banking with us. your family. At the heart our engagement RMB Private Bank Fusion Account future generations. All fees quoted are VAT inclusive and are model is your Private Banker, together with effective
    [Show full text]
  • Investec Bank Plc Banking Relationship Agreement
    INVESTEC BANK PLC BANKING RELATIONSHIP AGREEMENT 1 Contents 1. Welcome to your Relationship Agreement 4 2. Protecting your account 7 3. Giving us instructions 8 4. Using your account 10 5. Using banking services 17 6. Debit cards 17 7. Third Party Providers 18 8. Borrowing on your account 18 9. Changing the terms of your agreement 20 10. Liability 21 11. Suspending your account, or stopping your use of banking services 24 12. Other events that might happen 25 13. Closing accounts 26 14. If you fail to make a payment to us (set-off) 27 15. Contacting you 28 16. General terms 29 Definitions 31 Charges Sheet 32 Additional Conditions for the Currency Access Account 33 Additional Conditions for the Direct Reserve Account 35 Additional Conditions for the E-asy Access Account 36 Additional Conditions for Fixed Term Deposits 37 Additional Conditions for the Investec Access Account 39 Additional Conditions for the Investec Cash ISA 40 Additional Conditions for the Investec High 5 Issue 2 Account 43 Additional Conditions for the Private bank account 45 The Private bank account glossary 49 Additional Conditions for the SIPP and SSAS Saver 51 2 Additional Conditions for the Specialist Access Account 53 Additional Conditions for the Voyage account 55 The Voyage account glossary 60 Additional Conditions for the Voyage Reserve Account 62 Additional Conditions for the 2 Year Double Base Bond 63 Additional Conditions for the 3 Month Reserve Account 65 Additional Conditions for the 3 Year Base Rate Plus 66 Additional Conditions for the 3 Year Base Rate Plus (release 2) 68 Additional Conditions for the 5 Year Step Up Bond 70 Additional Conditions for Notice Plus 72 3 1.
    [Show full text]
  • The Future of Private Banking: a Wealth of Opportunity? “Wealth Unused May As Well Not Exist”
    Financial Services The Future of Private Banking: A Wealth of Opportunity? “Wealth unused may as well not exist” Aesop 620BC-560BC Executive summary Fuelled by a bull run in stock markets and unprecedented wealth creation, the global Private Banking1 industry has seen exceptional growth over the past five years. Throughout this period, Wealth Managers quite rightly have focused largely on expansion. The combination of increasing competition and more difficult market conditions, however, has marked the beginning of a more challenging era. For well-differentiated and increasingly global players, the changing environment will provide new opportunities to build a distinctive brand. This report looks both at the strategic drivers of value in the industry and at the levers that Private Banks can pull to improve value creation in their businesses. Section 1 Section 2 Section 3 The outlook for global wealth Taking a value perspective Opportunities for value creation I) Targeting Value perspective I entrepreneurs Impact of geographic choices and II) Lending solutions Global market sizing distribution models and outlook for growth III) Institutionalising Development of clients global HNWI wealth pools (onshore and offshore) Value perspective II IV) Branding & franchise Impact of corporate structure V) Risk management Section 1 sets out our view on global wealth pools. We estimate High Net Worth Individual (HNWI) wealth to have reached some US$50 TN in 2007, and expect it to rise to US$75 TN by 20122. This implies a slowdown in Compounded Annual Growth Rates (CAGRs) from 11% p.a. (2003-2007) to 9% p.a. (2008-2012). We expect growth rates to vary significantly by region, with the Middle East and Asia Pacific (except Japan) leading the pack.
    [Show full text]
  • Top Wealth Managers
    20. Hirtle, CallagHan & Co. tel: 215-419-6100, Chip Wilson Website: www.veritablelp.com Private-Client Managers: 654 rank ’08: 33 e-mail: [email protected] tel: 610-540-2036, John Scuteri Clients Per Manager: 405 To p We a l T h Ma n a g e r s Here are the top wealth-management businesses in the U.S., based on assets under management in accounts of $5 million or more, as of June 30. The U.S. Private-Client assets: $17.15 bil e-mail: [email protected] U.S. Private-Banking offices: 63 account sizes are up from $1 million-plus in previous Barron’s rankings, to reflect the industry’s increased emphasis on the very wealthy. Big mergers, like Bank of America’s with Merrill Lynch, contibuted to a Minimum account: $10 mil 25. BarClayS WealtH Specialties: Asset-allocation strategies, investment re- Median account: N.A. rank ’08: 19 search and management, financial and retirement planning, reshuffling of the ranks. “N.A.” means data not available. This ranking includes corrections to an earlier version. Private-Client Managers: 19 U.S Private-Client assets: $13.3 bil 30. FidUCiary trUSt CoMPany intl estate and philanthropic planning, business-succession Clients Per Manager: 10-25 Minimum account: N.A. rank ’08: 37 planning. U.S. Private-Banking offices: 7 Median account: N.A. U.S Private-Client assets: $7.0 bil Website: www.rwbaird.com 1. BanK oF aMeriCa gloBal WealtH 70 for Private Wealth Mgmt Minimum account: Typically $1 mil, but in Median account: $8 mil Specialties: Portfolio management, securities Specialties: Integrated asset management, capital Private-Client Managers: 233 Minimum account: $2 mil tel: 800-RWBAIRD, Karen Sweeney & inVeStMent ManageMent (including U.S.
    [Show full text]
  • Best Bank for Sustainable Investing and UHNW
    For UBS marketing purposes The Global Private Banking Awards cap a successful year in which UBS has already won several accolades. (UBS) Global Private Banking Awards Best Bank for Sustainable Investing and UHNW 11 November 2019, 8:36 pm CET, written by UBS Editorial Team PWM and The Banker from the FT named UBS "Best Private Bank for Sustainable Investing" and "Best Private Bank for Ultra High Net Worth Clients" in 2019, recognizing the bank's position as an industry leader in these segments. UBS is grateful to be recognized for its efforts to drive independent expert panel and are judged on the progress change through sustainable investing and for offering they have made in their business and growth strategy and comprehensive and highly personalized financial services how they have been able to boost inflows and profits. They for individuals, families and family offices around the globe. are also evaluated on their client relationship management UBS also won Best Private Bank in Asia and was highly capabilities, and how they adapt portfolio management, commended for Best Global Private Bank and Best Private asset allocation and product strategy to meet investors' Bank for Education & Training of Private Bankers. changing needs and attitude to risk. Increasingly, investors want their investments to reflect their The Global Private Banking Awards cap a successful year personal values. Sustainable investing could allow them in which UBS has already won several accolades, including to create lasting positive change in the world, without the "Best Private Banking Services Overall 2019" title in compromising on investment performance.* By investing the Euromoney Survey earlier this year.
    [Show full text]
  • The Origins of Swiss Wealth Management? Genevan Private Banking, 1800–1840 Stefano Ugolini
    The origins of Swiss wealth management? Genevan private banking, 1800–1840 Stefano Ugolini To cite this version: Stefano Ugolini. The origins of Swiss wealth management? Genevan private banking, 1800– 1840. Financial History Review, Cambridge University Press (CUP), 2018, 25 (02), pp.161 - 182. 10.1017/S096856501700021X. hal-01886978 HAL Id: hal-01886978 https://hal-univ-tlse2.archives-ouvertes.fr/hal-01886978 Submitted on 3 Oct 2018 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. The Origins of Swiss Wealth Management? Genevan Private Banking, 1800-1840 Stefano Ugolini1 October 26, 2017 Abstract: Geneva is host to the most ancient and venerable private banks of Switzerland, but not much is known about the circumstances in which the city allegedly developed an early competitive advantage in wealth management. Using an extraordinary qualitative source (Jacques Mirabaud’s papers, and especially his memoirs), this article outlines the microstructure of Genevan private banking at the time of its emergence in the early nineteenth century. It finds that in those years, wealth managers’ “raw material” did not consist of foreign capital, but of a remarkably abundant stock of domestic capital. Financial and social factors were intertwined in producing a very hierarchical division of labour in the origination and distribution of international sovereign loans.
    [Show full text]
  • Digital Wealth Management in Asia Pacific
    Digital Wealth Management in Asia Pacific A comparative analysis across eight key markets 2021 kpmg.com/cn Foreword Asia Pacific has been witnessing strong economic As a result, a growing number of financial institutions prosperity as a result of its open business have widened their target customer groups and environment, relaxed regulatory landscape and a increased focus on developing efficient digital well-developed infrastructure. This has led to a rise in capabilities to cater to mass markets. In relation to the population of High-Net-Worth Individuals mobile access to financial services, the race is on to (HNWIs), particularly the younger generation who provide customers with the best “bank-in-a-pocket” demand technologically advanced and highly service. This race has been joined not just by customised banking and wealth management traditional and neobanks, but also by megatech and solutions, designed specifically to cater to their telecommunications companies with ambitions to growing investment needs. widen their market presence throughout Asia Pacific. The region is home to ~15 million HNWIs, the This move toward digitalisation has further picked up second-largest concentration in the world after North pace post the COVID-19 pandemic. According to America, with an expected growth of 39 percent by KPMG’s 2020 CEO Outlook Survey, 81 percent of 2024, the highest growth forecast globally.1 About CEOs in the Financial Services (FS) sector feel that half of these people are located in mainland China COVID-19 has accelerated digitisation of operations alone. They are looking for highly-personalised and creation of next-generation operating models, advisory solutions from technologically sound while 76 percent feel that it has accelerated the advisors to help plan their family wealth and creation of new digital business models.2 succession.
    [Show full text]