Global Private Banking Awards 2016: Winners’ Profiles – National Winners (Africa)

Best Private Bank in Egypt
Best Private Bank for US Customer Service
Best Private Bank for UHNW clients
Citi Private Bank

Targeted at the wealthiest segment of the world’s population with more than $25m to invest, requiring a “high touch” relationship, Citi Private Bank is expecting the most significant growth in managed assets to come from Asia. “Entrepreneurs are all around the world. There is no shortage of people willing to strike out and we position our brand to help serve them,” says Peter Charrington, global CEO of Citi Private Bank.

He warns the competition, many of whom are selling their franchises and retrenching as national players, that it will be difficult to keep up with the cross-border banks currently making the running.

“A lot of them do not manage their cost-income ratios and they lose focus; we will see this trend continue,” warns Mr Charrington, who says banks need to define their proposition and exactly what they are offering to clients. “People are coming into the industry with high costs and regulation, so they need to be focused on who they are serving in terms of types of clients. If they are trying to be all things to all
people, then it’s a very difficult proposition. At Citi Private Bank, we have remained steadfast in our vision, execution of that vision and the segment of clients we serve. This has benefited us, but most importantly, it has served our clients well.”

Part of the answer to redefining the business model has been judicious use of new technology and the US bank has been one of the most pro-active in rolling out a digital communication channel across the regions where it has strongest penetration. Its ‘Project Sheen’ led to the redesign of the entire customer experience, including receptions and meeting rooms, as well as digital interfaces such as the InView system. 

This process is one of constant re-valuation and is definitely not static, says Mr Charrington, who chairs a working group that regularly looks at glitches in the system and evaluates customer feedback before making more tweaks to the digital platform. 

Although there was originally talk within Citi about breakneck technological innovation, staying ahead of competitors, the thinking has recently been modified, with the artificial intelligence pioneered by the likes of Singapore’s DBS and the Korean banks seen as a potential step too far for the wealthiest clients. Mr Charrington is adamant that these people come to his bank for one-to-one advice, which is the key tenet of customer service. 

“We don’t see ultra high net worth investors going for robo-advice. Our technology and digital experience is very high quality, but people are still our most important ingredient. The more wealth you have, the more that becomes important. Digital is not the only component.”

In the US, each banker serves just 30 clients. “Our definite aim is to keep this number small,” says Tracey Warson, head of North America at Citi Private Bank. “The more wealth a family has, the more complex the needs are.” YB

Best Private Bank in South Africa
Investec

Amid tough competition from the likes of Standard Bank, Nedbank and RMB, Investec showed healthy net new money of $2bn during 2015 to boost managed assets to $29bn, despite an uncertain political and economic backdrop in South Africa, where it has eight offices across the country.

“Given the current political and economic uncertainty, clients have gravitated towards greater diversification of their portfolios, which Investec is uniquely positioned to assist with,” says Henry Blumenthal, head of Investec Wealth & Investment South Africa.

Investec prides itself in offering clients access to a specialist private banker and investment management expertise, rather than just consulting with one generalist relationship manager. Clients can also call a 24-hour Global Client Support Centre. The bank’s digital effort comprises the Investec Online channel plus mobile and tablet Apps. Key features include the Online Portfolio Manager system, which allows self-directed clients to make investments electronically, define their investment objectives, compare performance and invest in a managed share portfolio, locally or internationally. Enhancements introduced during 2016 include simplified payment screens, allowing clients to make payments directly from their dashboard; a new facility allowing them to request documents, access bank statements and download tax certificates; plus upload digital copies of important documents through the My Briefcase feature. 

“Although technology is crucial at Investec, it will always play a supporting role to a personal client experience,” comments Mr Blumenthal.

The private bank targets specific client groups, including medical professionals, entrepreneurs, high net worth and ultra high customers. Private clients are offered services from the bank’s Wealth & Investment division, which has offices in the UK, Switzerland, Ireland, Guernsey and Hong Kong, with a new operation recently opened up in Mauritius to expand the bank’s footprint and service Africa.

The bank recently named its first private banking brand ambassador, South African actor and entrepreneur Masego ‘Maps’ Maponyane, after he featured in a video aimed at recruiting young professionals to bank with the Investec brand.

The banks calls this campaign “an unprecedented success”, which generated “hundreds of leads” and helped them stage events which were at “full capacity”. Deon Katz, head of private banking South Africa says: “Since bringing Maps onboard, we have seen a significant increase in social medial conversation and positive sentiment among our young professional audience.” YB

Best Private Bank in Nigeria
Best Private Bank in Kenya
Standard Bank Wealth and Investment

Standard Bank Wealth and Investment, the largest bank by assets on the African continent with more than 150 years of experience, saw its client assets surge by 30 per cent last year to ZAR165bn ($11bn), boosted by ZAR16bn of net new money. 

With offices throughout South Africa, Kenya, Nigeria, Ghana, Mauritius, Jersey and London, the bank claims to be “South Africa’s most global wealth manager” and identifies its key differentiating factor in the connection with and understanding of the local markets. 

“Periodically we see competitor banks withdrawing from African markets, whereas we are deeply rooted in our home continent,” states Deon de Klerk, head, Africa and International at Standard Bank Wealth and Investment. “Africa is our home, we drive her growth.”

Its integrated onshore and offshore proposition is believed to be a key strength too, with its offshore fiduciary, investment and banking capabilities believed to be a clear differentiator in both markets.

The offering proves particularly important in turbulent markets, such as that experienced by Nigeria. The country, which relies on oil for a big chunk of its exports and has been hit hard by the collapse in prices, saw a sharp devaluation of its currency in 2016 and corresponding inflation spike, making it challenging to deliver inflation-adjusted real returns. 

The African bank has boosted its wealth product offering in both Nigeria and Kenya, for example delivering high-yielding fixed income solutions – eurobonds and treasury bills – in Nigeria, and customised cross-border lending structures in the Kenyan market. 

In Kenya, it is the only international bank with an in-house stockbroking unit, providing innovations, such as the Kenyan shilling-based dual currency investment. 

It also pioneered the provision of alternative investments in both African countries, through exclusive partnerships with global providers, for example giving clients access to wine investment with vintner Berry Bros & Rudd, and launching the Knight Frank proposition for the sourcing, financing and acquisition of international property in partnership.

The bank has invested considerable resources in building its Wealth and Investment Academy, to train and nurture talent internally, which has been particularly beneficial in countries where the pool of experienced practitioners is “fairly small”.

The bank also continues to expand its Leadership Academy programme for clients, designed to pass down wealth management skills to the next generation. “Succession and successful inheritance planning are a key concern for local clients and we are the only bank in Africa to offer such a comprehensive next generation programme,” claims Mr de Klerk.

Banking products currently account for the majority of the bank’s revenues in both markets. However, as its investment and asset management footprint continues to grow, the bank expects a corresponding increase in fee-related revenues over the coming years. ET

Best Private Bank in Mauritius
MCB Private Banking

MCB Private Banking and the Indian Ocean island of Mauritius itself share the same ambition: namely to act as a gateway for channeling trade and investment flows between Asia and Africa. “Through its strategic location and numerous advantages as a springboard to Africa, Mauritius is strengthening its position as a private banking and wealth management destination,” says Didier Merle, head of private banking at MCB.

The rising number of HNWIs in the region means prospects for growth are good. The bank’s number of private clients rose by 16.5 per cent in a year to reach almost 7200 by the end of 2015. More than half that number come from outside the island, a trend that is likely to continue as MCB plans to expand its private banking offering into Africa. 

“Together with our representative offices in Johannesburg and Nairobi, we have identified specific initiatives to adequately respond to the growing interest from sub-Saharan countries for the diversification of their wealth management and investment destinations,” explains Mr Merle. The bank is also actively targeting new clients in Europe as well as specific targets such as Dubai. 

The domestic scene remains important however. Mauritius is a competitive market, with more than 20 banks on the island, a number of them niche players serving the HNWI market. The growing trend of wealthy foreigners holding resident permits in Mauritius is creating a growing demand for real estate and premium concierge services, he adds. It is important to understand these individuals’ lifestyles and their areas of interest in order to offer them convenient and unique luxury experiences, reports Mr Merle. 

“The requests can be as far-fetched as booking a private jet, to recommendations on where to sample authentic local cuisine on the island. Ultimately, our aim is to understand the profile of our valued clients with a view to delivering a truly personalised experience to them.” ES