The Private Banking and Wealth Management industry is growing in Asia, especially with the increase in wealthy individuals from China and around the region and the increase in expansion activity of the traditional Swiss private banks.
I decided to pick the brain of one of our private banking experts, to ask him what he thinks are the top 3 factors institutions looking to grow their private banking businesses need to do to, here’s his tips:
Private banking historically has always been at the heart of relationship banking. In Asia, where the private banking is and has been growing significantly, a number of key challenges deserve attention.
The first is the understanding of their clients- as simple as it may sound- it has not been at the center of the private banking industry for that long.
The KYC list are helping you in that respect only so much. Behavioral finance and wealth preservation techniques are critical tools that will complement and intensify that relationship.
Further it is essential to understand that wealth preservation over the generations is problematic particularly in Asia and estate planning is often only the start of the solution in that respect.
Finally, the development of flexible and propriatary product groups are essential. This requires not only the technical capabilities which most regionally and globally operating firms hold but in particular the fee & compensation distribution methodologies driving the long-lasting relationship between the private banker and his client.
In the background there is additionally always the need to manage the underlying regulatory framework that is constantly in evolution in terms of banking secrecy, confidentiality aspects, tax affairs etc. on a national and international level.
If you want to learn more about being a private banker or wealth manager, check out our Certified Wealth & Investment Management Specialist (CWIMS) training course that will cover the latest skills for private bankers and wealth management professionals.
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