PRIVATE BANKER December 2016 Issue 339 www.privatebankerinternational.com A stellar cast Glimpses from the star-studded Private Banker International Global Wealth Summit and Awards 2016 • Interview: BNP Paribas Wealth Management • Analysis: Make way for the RegTech revolution • Research: PBI-DTCC whitepaper highlights • Comments: Industry experts reflect on 2016 PBI 339.indd 1 15/12/2016 19:05:19 Welcome to THE DIGITAL BANKING CLUB POWERED BY Intelligent Environments, the international provider of digital nancial services Join thousands of nancial solutions in association services professionals with Retail Banker International, Cards who have joined The International, Electronic Digital Banking Club to Payments International, understand and discuss the Private Banker International, and Motor future of mobile and online Finance publications. nancial services Membership bene ts 10% discount for new subscribers/purchases on: Annual subscription to Private Banker International World Market Intelligence’s archive of Private Banking research reports Subscription to WealthInsight Intelligence database World Market Intelligence Ltd.’s bespoke research and consultancy services Join The Club! www.thedigitalbankingclub.com Membership is free or for further information please email: [email protected] PBI 339.indd 2 15/12/2016 19:05:20 TDBC PB - final design.indd 1 10/05/2016 14:55:46 Private Banker International EDITOR’S LETTER Welcome to THE DIGITAL CONTENTS Hybrid models coming of age BANKING CLUB NEWS 2, 10: NEWS DIGEST POWERED BY 3: NEWS BRIEF 20: TECHNOLOGY ROUND-UP ood news online/mobile banking and refreshing take on Personal Financial Manage- Intelligent Environments, investing enthusiasts – there’s a new ment (PFM) tools that have taken a while to 21: REGULATION ROUND-UP toy to try out. Even better news if you come of age in wealth management. the international provider 23: PEOPLE MOVES are a Barclays customer as the bank Additionally, as we go to print, Charles G Schwab in the US has announced plans to of digital nancial services has launched a new integrated online direct ANALYSIS investing platform combining its online bank- launch a new hybrid service, Schwab Intelli- Join thousands of nancial solutions in association ing and investment services. gent Advisory, combining advice from finan- 6,7,8: PBI-DTCC WHITEPAPER The platform has one fee and one transac- cial advisers with online advice to target mass with Retail Banker A recent whitepaper, End-to-End Efficiency: services professionals Highlighting crucial bottlenecks for private tion charge, and would be free from common affluent investors. The service requires mini- International, Cards banks in Singapore and how they can be charges including exit fees, reinvesting divi- mum investment of $25,000, is expected to eased out, written by PBI and sponsored dends and probate valuations. It has no mini- launch in the first half of 2017, and will offer who have joined The International, Electronic by DTCC, highlights how best to mitigate challenges from evolving regulatory mum investment amount. clients a customised financial plan and ongo- Payments International, demands, rising cost-income ratios and In the UK, this is a fresh example of a bank ing live advice from certified financial planners, Digital Banking Club to increasing complexities bringing together a suite of services to allow as well as an automated portfolio at a low cost. Private Banker 22: LIQUIDITY EVENTS its customers to see their investments, savings These platforms are steps in the right direc- understand and discuss the and current accounts through a single log-in, tion for the wealth management community. International, and Motor FEATURE as well as address the savings and investing Several private banks, so far, have strongly future of mobile and online Finance publications. “knowledge gap”. denounced threats from robo-advisory firms, 4,5: BNP PARIBAS WEALTH MANAGEMENT However, there is also the “advice gap” that claiming that online-only algorithms do not The needs of wealthy entrepreneurs are clients are worried about. High cost of advice have the ability to satisfy big-ticket customers nancial services complex, and BNP Paribas is attempting to serve this demographic by offering a has been blamed for this and there has been who are relationship-driven. However, players holistic approach that incorporates digital a push in recent months to offer cheaper and such as Nutmeg in the UK and WealthFront innovation. John Schaffer speaks with simpler services to the mass-affluent and even and Betterment – to only name a few – in the co-CEOs Vincente Lecomte and Sofia Merlo affluent customers. US have given banks a lot to think about, cre- 9: REGTECH REVOLUTION Some banks have reacted accordingly. For ating easy alternatives for wealthy clients. Although it is a fairly nascent industry, instance, Swiss private banking giant, UBS, With competition between banks getting Membership bene ts deploying regulatory technology could lead to significant cost savings for private has announced the launch of SmartWealth in tougher and profit margins being squeezed, banks. So what are the prospects and the UK in 2017 where people with investable private banks need to evolve according to 10% discount for new subscribers/purchases on: challenges? John Schaffer finds out assets of GBP15,000 can become customers. market and client demands to gain more wal- 11-15: PBI GLOBAL WEALTH SUMMIT This can include clients opening a new ISA or let share. There is, certainly, an underserved 2016 - AN OVERVIEW transferring their existing ISAs to UBS. This is segment that is not keen to over pay but needs Annual subscription to Private Banker International The PBI Global Wealth Summit 2016 in Singapore in October brought together a drastic departure from their $1m in investa- investment management services. World Market Intelligence’s archive of Private Banking private banking industry leaders to discuss ble assets entry point so far, and can be a game Barclays W&IM and UBS have shown that evolving business models, the use of changer for the industry. they are paying attention. Now more private research reports technology, the impact of regulation, inter- generational wealth transfer and other key With SmartWealth, UBS is committing to banks need to take note. issues. Xiou Ann Lim reports the hybrid model that combines technology Subscription to WealthInsight Intelligence database 16,17: PBI GLOBAL WEALTH AWARDS with human insight, and opening their services Meghna Mukerjee 2016 - PHOTO SPREAD up to a whole new client segment. It is also a [email protected] World Market Intelligence Ltd.’s bespoke research and A photo spread of select winners from the PBI Global Wealth Awards 2016 consultancy services 24: PBI SWITZERLAND AWARDS 2016 - WINNERS PBI has announced the winners of the 2016 Private Banking Switzerland Awards at a ceremony held in conjunction with the Private Banking: Switzerland Conference Join The Club! COMMENT 18,19: EXPERTS REFLECT ON 2016 www.thedigitalbankingclub.com The ramifications of the many standout events in 2016 will be felt for some time. PBI hears from industry experts as they Follow Private Banker International look back at the year, highlight the shifts Membership is free impacting the markets and investors, and tell us what to expect in 2017 or for further information please email: Search for ‘Private Banker International Search for @BankerNews [email protected] – Timetric Financial Services’ www.privatebankerinternational.com December 2016 y 1 PBI 339.indd 1 15/12/2016 19:05:21 TDBC PB - final design.indd 1 10/05/2016 14:55:46 Private Banker International NEWS DIGEST PRODUCTS AND SERVICES DEALS PRODUCTS AND SERVICES HSBC to open private banking Banco Santander to buy back Aberdeen Asset Management office in Australia asset management unit opens office in Abu Dhabi HSBC has announced plans to open an Spanish banking group Banco Santander has Aberdeen Asset Management has established office in Australia and expand its private agreed to buy back a 50% stake in its asset a presence in the Middle East by opening a banking presence in Asia-Pacific. HSBC will management arm from US private equity new office in Abu Dhabi, the capital of the offer private banking services to HNWIs and firms Warburg Pincus and General Atlantic UAE. family offices with investable assets of over for an undisclosed sum. Aberdeen has now become the first inter- A$10m ($7.5m). The deal will offer Santander 100% own- national asset manager to open an office in According to Capgemini’s World Wealth ership in Santander Asset Management, the Abu Dhabi Global Market, the interna- Report, Australia has the third-largest which currently oversees €170bn ($180.5bn) tional finance centre of Abu Dhabi. population of HNWIs in Asia-Pacific, with in assets. Aberdeen offers a range of products, cov- around 29,500 of Australia’s households The US buyout firms acquired the stake in ering strategies across bonds, equities, prop- having a net worth of over A$10m. 2013 in a deal that valued the asset manage- erty, alternatives and quantitative invest- The private banking team in Australia ment unit at €2.05bn. ments. The company has been active in the will collaborate with HSBC’s retail banking, In November 2015, Santander signed an Middle East and North Africa for over 20 wealth management, global banking, mar- agreement to merge its asset management years. kets, and commercial banking businesses. arm with Pioneer, the asset management The company has appointed Andrew Paul Australian resident private banking clients unit of Italian banking group UniCredit. as senior executive officer of Aberdeen Asset will have access to discretionary investment However, the merger plans were eventually Management Middle East, while Lucy Drap- management services, equities, fixed income, scrapped for regulatory reasons. er has been hired as senior business develop- structured products and derivatives as well Santander, Warburg Pincus and General ment manager. as deposit accounts, foreign exchange and Atlantic agreed to explore alternatives for Paul, who joined Aberdeen in 2002, most online transactional banking.