Looking for opportunities in new markets

Grabbing market share is not just about established, European markets: it is also about making the most of the new ones. And the big names in private banking are all looking to Eastern Europe.

“We are opening an office in Moscow next year,” says Matthew Brumsen, UBS’ head of wealth management for the UK, Northern and Eastern Europe, “and we think there is a growing opportunity in the major Eastern European countries to service the growing wealth and sophistication of clients.”

According to Eva Castillo, head of global private clients for the UK and Europe at Merrill Lynch, all the Eastern European markets are interesting, but not all the potential for growth lies outside the already developed markets: “countries like the UK, France, Spain, Switzerland and Italy all continue to have great rates of growth”.

Fortis’ expansion of private banking across Europe has taken it to Turkey and Poland, where it already has commercial banking activities, and where it will maintain its focus on entrepreneurs, according to global managing board member Pim Mol.

Beyond Europe, all eyes are on Asia, although Julius Baer also has a growth strategy in the Middle East and Latin America, according to Boris Collardi, chief operating officer for private banking.

As Bernard Coucke, head of ING Private Banking in Europe, puts it: “Like many banks, ING wants to further expand into the Asia Pacific region, where the population growth and per capita wealth is growing faster than in Europe.”

However, he warns that, for many banks, the region can be a challenge, “not only because of the competition but also because of the restrictions some countries, such as China and India, have on foreign ownership in the banking sector”. He stresses ING’s co-operation with domestic players, such as Vyasya Bank in India and the Bank of Beijing in China.

Julius Baer’s secret, according to Mr Collardi, is a team with experience of the market, and the potential to make “substantial but focused investment in the region”. Essentially, he says: “You need to know the country, you need to know the market and the people. It’s not rocket science – just very pragmatic.”