PRIVATE BANKER June 2015 Issue 321 www.privatebankerinternational.com Champion's league Honouring winners of the PBI Awards: London 2015 • PBI Conference: London 2015 • World Wealth Report 2015 • Country survey: UK • PBI Greater China Awards: Winners PBI 320.indd 1 03/07/2015 10:21:26 Intelligent Environments in association with Retail Banker International, Cards International and Electronic Payments International Join thousands of financial services professionals who have joined The Digital Banking Club to understand and discuss the future of mobile and online financial services Join now and receive* 10% discount on delegate passes for Europe’s leading conferences and awards: 10% discount on subscriptions to leading global briefing services: Retail Banker International Cards International Electronic Payments International Private Banker International Leasing Life 10% discount on subscriptions to intelligence Join the club for free services: Cards & Payments Intelligence Center www.thedigitalbankingclub.com Retail Banking Intelligence Center WealthInsight For more information please email PLUS 10% discount on expert research reports and research consultancy [email protected] mentioning MEMBER OFFER in the subject line * Available to new customers only PBI 320.indd 2 03/07/2015 10:21:26 DBCad draft 2.indd 1 30/05/2014 11:22:43 Private Banker International EDITOR’S LETTER ANALYSIS Intelligent Environments in association with Retail Banker International, CONTENTS Wake up and smell the competition Cards International and Electronic Payments International NEWS e it while attending any industry event tile grounds for these firms, as there is a large 2,10: NEWS DIGEST or interviewing senior private banking mass-affluent population that traditional pri- 3: NEWS BRIEFS executives – the one topic of conversa- vate banks won’t service. There is a gap in the Join thousands of financial services professionals who have joined The Digital Banking 9: PBI AWARDS: LONDON 2015 - WINNERS tion that continues to dominate is the market that robo-advisors seem to be filling. B However, these automated advisory services importance of digitisation in wealth manage- Club to understand and discuss the future of mobile and online financial services 9: PBI GREATER CHINA AWARDS 2015 - WINNERS ment. The importance of real-time customer cannot be ignored in Europe either, with the servicing, access to granular data and a range UK itself having witnessed the rise of players 16: TECHNOLOGY UPDATE of effective digital tools that empower both such as Nutmeg over the last three years. The 17: REGULATION ROUND-UP relationship managers as well as clients is WWR findings also show that Asia Pacific 19: PEOPLE MOVES paramount. HNWIs (excluding Japan) actually had the At the PBI Conference: London 2015 earlier highest propensity to use automated services ANALYSIS in June (pgs 4-8) the technology and digital at 76.3%, while only 19.3% of the wealth trends focus prevailed the entire day and came managers in the region assessed so. 3: WEALTHINSIGHT up in one way or another during all four ses- It is also clear that it is not simply the mil- 18: LIQUIDITY PROFILES sions. lennials who want to use these digital entrants Conversations about digitisation and auto- and HNWIs who have existing private bank- FEATURE mation do lead to talks about the rise of the ing relationships are also keen to try them out. automated advisory services or robo-advisors. EY's recent report, Advice goes virtual: how 4-8: PBI CONFERENCE: LONDON 2015 The private banking and wealth management new digital investment services are changing The 2nd annual PBI Conference: London community is experiencing the growth of these the wealth management landscape, also reiter- 2015 saw some of the leading experts in the private banking and wealth management alternative players that allow wealthy individ- ates that digital entrants cannot be ignored by industry come together on 3 June. uals a fast, low-cost, DIY approach towards traditional players. Distinguished industry experts discussed investing and managing their portfolios. The WWR recommends a hybrid approach a wide range of pivotal topics, including UK’s position as a global wealth hub and Despite their increasing popularity, the in the future to allow both digitised servicing the integration of digital services in the standard answer one hears from traditional opportunities while having a wealth manager industry. John Schaffer provides an overview wealth managers is that these services are good at the core of the relationship. Some firms are options for wealthy clients, but they pose as paying attention. Hargreaves Lansdown, for 12-13: WORLD WEALTH REPORT 2015 ‘no real competition’, and that there is no sub- instance, plans to launch its own online advi- Join now and receive* The year 2014 has been a modest one for growth, globally, in the number of high net stitute to human contact. Fair enough. sory service and move towards a hybrid busi- 10% discount on delegate passes for Europe’s leading conferences and awards: worth individuals and their wealth. The latest However, the recent World Wealth Report ness model. World Wealth Report 2015, by Capgemini 2015 (pgs 12,13) by Capgemini and Royal However, the robo-advisory community and Royal Bank of Canada, provides details Bank of Canada reveals some interesting should motivate wealth managers to stay 10% discount on subscriptions to leading global briefing services: around geographical performances, behavioural shifts as well as investment insights about the rise of automated advisory on top of their game. The stark differences Retail Banker International inclinations and trends. Meghna Mukerjee solutions and how they are being perceived between HNWIs’ propensity to use auto - explores the findings Cards International by both wealth managers and high net worth mated advisory services and wealth managers’ individuals (HNWIs). assessment of the same – as shown through the Electronic Payments International COUNTRY SURVEY Clearly, wealth managers across the world WWR findings – should come as a wakeup call are grossly underestimating the lure of auto- for wealth managers across the globe, espe- Private Banker International 15: UK mated advisory solutions as well as HNWIs’ cially those that have been brushing digital Leasing Life The number of HNWIs continues to grow in the UK, providing a captive market for the inclinations towards using them. entrants off with that familiar ‘no real compe- private banking and wealth management Companies such as Wealthfront and SigFig tition’ statement. 10% discount on subscriptions to intelligence Join the club for free industry. Amidst tighter regulatory in the US have made big headways. The robo- controls, the UK is still amongst the most advisory concept mainly emerged out of Sili- Meghna Mukerjee services: favourable locations for the wealthy to seek [email protected] www.thedigitalbankingclub.com management of their assets. John Schaffer con Valley entrepreneurship and the US is fer- Cards & Payments Intelligence Center looks further into statistics provided by the Retail Banking Intelligence Center WealthInsight database WealthInsight COMMENT For more information please email PLUS 10% discount on expert research reports and 20: WITHERS CONSULTING GROUP Ken McCracken, founder and consultant at research consultancy Withers Consulting Group, comments on [email protected] succession planning Follow Private Banker International mentioning MEMBER OFFER in the subject line Search for ‘Private Banker International Search for @BankerNews – Timetric Financial Services’ * Available to new customers only www.privatebankerinternational.com June 2015 y 1 PBI 320.indd 1 03/07/2015 10:21:28 DBCad draft 2.indd 1 30/05/2014 11:22:43 Private Banker International NEWS DIGEST STRATEGY the FOX Business Network has adding advice around the recent region who might not cross the Swiss bank Reyl & reported. pension changes.” Victoria Harbor to invest. Cie looking to double Had the deal materialised, UBS Wealth Management assets by 2020 it would have lead to the PRODUCTS AND SERVICES regional market manager for addition of over 7,000 brokers New British private Hong Kong, Jean-Claude Swiss private lender Reyl & to Morgan Stanley, creating a bank Hampden & Co Humair, said: "For us it's more Cie is planning to expand its wealth management firm larger opens for business of a strategic decision to go international footprint and than Bank of America's Merrill to Kowloon to focus on the increase in its assets under Lynch. Hampden & Co, the UK's first entrepreneur and to show this management by 50-100% over UBS has not declared that its new private bank in 30 years, important group of prospective the next five years, according to brokerage division is for sale, has formally commenced busi- clients that we want to come Reuters. but talks have been going on ness in Edinburgh and London. your way." "We are working on a 2016- as the Swiss bank is looking The private bank was The bank will look to hire 2020 plan which involves to overhaul and trim its US established in 2010 by former new client advisers besides getting our assets under operations. chairman of Adam & Company to re-locating existing staff management significantly Ray Entwistle, under the name to support its presence in north of 15bn, so we still have STRATEGY Scoban in 2010. It was renamed Kowloon. strong ambitions," Reyl & Cie Former Brewin in April following specialist UBS will also hire