Global Private Banking Awards 2017: Winners’ Profiles – National Winners (Western Europe)

Best Private Bank in Belgium (BNP Paribas Fortis);
Best Private Bank in France (BNP Paribas Banque Privée france);
Best Private Bank for Use of Technology
BNP Paribas Wealth Management

Client assets at BNP Paribas Wealth Management are steadily creeping up, with another $15bn of net new money added during 2016, reaching a grand total of $390bn, 75 per cent of which is sourced from European families.

Unlike most competitors, the French bank is now creating a truly pan-European wealth management footprint, with ambitions in at least 10 countries, and centres for high net worth individuals having been opened in France, Italy, Belgium and Luxembourg. Belgium is currently the second largest private banking market within the group after France, the bank saying it remains “very attractive” in terms of future growth prospects. 

The bank has also trained up 120 specialist relationship managers to service the top tier of its clientele, providing expertise in corporate advisory, structuring and jet finance. They are also providing advice on key areas which the most wealthy private clients now typically demand of their banks, including private equity, real estate (BNP Paribas prides itself in expertise on French rural properties), socially responsible investing and philanthropy.

BNP Paribas has been involved in a major push on attracting and servicing entrepreneurs, particularly working on solutions for family offices, next generation members and female clients, in conjunction with improvement and re-invention of the client experience through digitisation and partnership with fintechs.

During the last two years, the bank has been busy hosting innovation groups, working with and gathering feedback from 100 key clients in locations including Brussels, Luxembourg, Paris, Geneva, Singapore and Hong Kong, creating digital solutions built in dedicated spaces described as “factories”. These have included: digital applications which can connect “Mega Wealth” clients with assets exceeding €100m ($118.5m), allowing them to share investment ideas and swap details of projects and assets; a biometric pass allowing access to all bank services through voice, fingerprint and facial recognition; and an advisory app giving clients direct details about the bank’s “buy” and “sell” recommendations.

This latter strategy, which has moved into the realm of ‘predictive behaviours’ has involved hiring a modest cohort of data scientists and analysts based in Singapore. “We are now making better use of data,” says Vincent Lecomte, co-CEO of BNP Paribas Wealth Management. 

“We have to improve and adjust our client propositions. For instance, there are some clients who could potentially be invested in private equity investments. Through analysis of client behaviour and interests and some of our proposals, we can work to improve our efficiency and meet client needs that they would not have expressed spontaneously.” YB

Best Private Bank in Germany
Berenberg

One might expect a bank that has survived for 427 years to know something about the preservation of wealth.

Judged by its strong reputation in the market, Berenberg, the second oldest bank in the world, has indeed learned a great deal about how to help wealthy families survive and prosper. Berenberg’s wealth management division has been judged Best Private Bank in Germany for the seventh year in a row.

However, Hans-Walter Peters, spokesman of the managing partners, is keen not to overemphasise the bank’s history. “Four hundred and twenty-seven years of existence is a unique position, but you also have to serve your clients in the best way,” he says. “Our clients know Berenberg as a reliable and stable partner that does not only mention its long history, but also has a strong view into the future.”

The man at the helm as the private banking arm sails into the future is Henning Gebhardt, who joined Berenberg as head of wealth and asset management in January 2017. Mr Gebhardt, a former investment strategist at Deutsche Asset & Wealth Management, is a high-profile figure in Germany, where he is nicknamed Mr Stock.

Under Mr Gebhardt, Berenberg’s wealth management division is simplifying some investment strategies. “Within Wealth and Asset Management some changes are currently discussed to reduce complexity of the product offering and to enhance the investment processes,” says Berenberg. “Through these measures we will strengthen our expertise to the benefit of our clients. In this context we will close our standardized foreign currency strategies denominated in US dollars and pounds and focus on individual portfolios in this field.” 

Private banks talk often of their focus on keeping the number of clients-based staff high, but Berenberg, which managed $46bn of high net worth individual assets at the end of 2016, makes the case for the importance of keeping up the numbers elsewhere too. Although the total number of staff in private banking rose in 2016, the number of client-facing staff fell slightly. 

“We are investing in equity analysts and fund managers,” explains Berenberg. “These are all not client-facing professionals, but our clients benefit from their work and from our expertise.” DT

Best Private Bank in Italy
Banca Generali

Majority owned by Assicurazioni Generali, one of the biggest insurers in the world, Banca Generali has won the Italian award for the second year in a row, in addition to picking up the trophy in 2012. It manages more than €52bn ($61.5bn) in client assets, of which the majority is sourced from wealthy individuals, owning at least €500,000 in financial assets. This client segment is the key target for the bank, which also serves a more retail client base. 

Over the past four years, assets sourced from HNW individuals almost doubled, and today represent 63 per cent of total client assets at the bank. “We expect this trend to continue, so we are aiming at further developing our added value services and bespoke offering to wealthy clients,” states Gian Maria Mossa, CEO and general manager at the Italian bank.

The bank is reaping the benefits of its new business model, providing “holistic advice” to the wealthy, including corporate finance, real estate and generational transfer. It also continues to expand its army of financial advisers, totalling 1,900 today, recruiting private bankers from struggling Italian and international competitors in the country, while innovating on the product side. 

Last year, Banca Generali ranked first in the Italian private banking market in terms of net new money, which totalled €5.7bn, representing a growth rate of 22 per cent on 2015. The positive trend is set to continue this year, supported by the strong popularity of the bank’s broadly diversified managed solutions, or ‘wrappers’,
which include both mutual funds, spanning across several fund managers and asset classes, as well as insurance
products. 

Clients’ trust in the traditional banking system has been eroded, while the tax burden on real estate and low returns from governments bonds have left investors with few alternatives for protecting their wealth, says Mr Motta. 

Digitisation, which simplifies and makes the advisory process more efficient, is a key pillar for the bank. Last year, it launched a new digital collaboration service, allowing clients to place orders for transactions remotely, through their financial advisers. Also, taking inspiration from the iTunes business model, the
bank introduced a new solution, ‘store’, which gives clients access to various apps and services for market and portfolio analysis. 

It recently announced an agreement with Saxo Bank to establish an “exclusive partnership” to offer online trading and digital services. “Digital trading has become an increasingly appreciated service by clients,” says Mr Motta. ET

Best Private Bank in Luxembourg
KBL European Private Bankers

While the European private banking market continues to consolidate, KBL epb is expanding its reach through a growth strategy that combines organic, semi-organic and external initiatives. In the past two years, the bank, which is headquartered in Luxembourg and operates in 50 cities across Europe, has made four acquisitions in its existing markets, providing greater scale and resources. 

In 2016 it acquired private bank Insinger de Beaufort in the Netherlands – with the intention of merging it with Theodoor Gilissen, a Dutch member of KBL epb, subject to regulatory approval. 

The merged entity will have a combined AuM of more than €20bn ($23.7bn), and will become “one of the strongest pure-play private banks in the Netherlands”, predicts Quentin Vercauteren Drubbel, head of Wealth Management at KBL European Private Bankers.

More recently, KBL epb acquired The Roberts Partnership, a UK-based financial planning and wealth management firm, which added 20 staff and more than €500m in AuM to Brown Shipley, KBL epb’s UK affiliate.

The group also moved forward on the integration of a long-term, large-scale project in partnership with Lombard Odier. Both Banque Puilaetco Dewaay Luxembourg, a boutique private bank in the Grand Duchy, and KBL Richelieu in France, migrated to the new IT platform, while KBL epb introduced it at its headquarters this summer.

The bank also expanded its portfolio management service offering, launching the Richelieu Investment Fund range. 

“Whether managing today’s wealth or structuring tomorrow’s inheritance, KBL epb clients benefit from a suite of open, independent solutions, tailored to their specific needs – backed by a client-centric approach, founded upon offering proximity, agility and personalised service,” claims Mr Drubbel.

During 2016, private banking AuM rose by €2.1bn to €50.8bn, and was boosted to €60.5bn by the acquisition of Insinger de Beaufort, which was finalised in January this year. ET

Best Private Bank in the Netherlands
ING Private Banking

ING, which last year experienced healthy net new money and rising profits, has put strong efforts around differentiating the customer experience and has made good progress toward becoming “a true omnichannel private bank”. It has also introduced a new flexible approach to work, both at the level of head office and sales network. 

“This has allowed us to respond much faster to changes and deliver new propositions faster, empowering our clients to stay a step ahead in life and in business,” says Ruud van Dusschoten, head of ING Private Banking.

Along with the “strong human touch” in the private banking offering, there is an increasing focus on developing digital capabilities, he adds. 

“In the Netherlands, the goal goes as far as to reinvent private banking and set new standards, by creating a truly seamless omnichannel private banking experience. Digital delivery of our services is done whenever its possible and desired by the client.”

Looking forward, the plan is to deliver one digital banking platform across Belgium and the Netherlands, with one integrated banking platform and a harmonised business model. 

“To continue to lead in digital banking, we need to offer a better customer experience, which is instant, personal, frictionless and relevant.”

The bank also uses data intelligence to map and model customer behavior, for example by introducing “a disciplined lead approach”. 

“Big data modelling helps us to predict the movement of banking prospects while the smart use of our client-related data drives decision-making and generate analytical insights, which allows for personalised customer interactions,” explains Mr van Dusschoten.

Last year, the private bank introduced an exclusive, invitation-only private banking club for its top clients, offering a 24/7 personal assistant, helping clients achieve they banking and non-banking goals. A new limited credit card service has given clients access to concierge services and airport lounges worldwide. ET

Best Private Bank in Europe;
Best Private Bank in Switzerland
Pictet Wealth Management

With both headcounts and assets rising, Pictet has launched a major initiative to boost its EU presence, by siting a key operations office in Luxembourg. A new booking centre in London also complements expansion in Germany and Italy. The bank also launched its Pictet Technologies IT company during 2016, employing 48 specialists. 

“For Pictet, Europe has always been for obvious geographical and cultural reasons, a key strategic region,” says Remy Best, managing partner at The Pictet Group. He is particularly proud that this European growth, which has also included adding offices in Paris, Madrid and Barcelona, has been achieved by “organic means only, without recourse to mergers or acquisitions”, which Swiss competitors have been keener to take advantage of.

To accommodate continuing growth, particularly the hiring of senior bankers, Pictet’s London operation has recently relocated to offices twice the size of previous premises in Mayfair, from where it serves clients from Asia, the Middle East, Europe, Russia and Latin America. That said, the home Swiss market remains hugely important for Pictet, with Mr Best believing the country’s strengths, including “a culture of discretion”, are coming into their own “in the unpredictable and unstable environment we live in”.

Ultra high net worth clients are making up an increasingly important part of this focus, with the skills of Pictet Asset Management in servicing central banks, pension schemes and sovereign wealth funds now being used to help families and wealthy private individuals. YB

Best Private Bank in Liechtenstein;
Best Private Bank for Growth Strategy
LGT

Many private banks like to cultivate an impression of grandeur, but few can boast that they are owned by a royal family.

LGT, the private banker and asset manager, is an exception: it began as family office for the Liechtenstein Princely Family, which remains its sole shareholder. 

HSH Prince Max von und zu Liechtenstein, a member of the Royal family, is LGT’s overall CEO, with Thomas Piske the CEO of the private banking unit. 

Mr Piske regards the ownership structure of LGT as “a very important success factor”. 

“The combination of LGT’s governance structure, our clear business focus on investment management and our culture provide us with a very special edge,” he says. “To have just one shareholder in the form of a foundation which is linked to the Liechtenstein Princely Family creates a highly stable and efficient governance structure.” 

The bank’s successful growth strategy is all the more striking because of the temptation among banks that are market leaders in their own particular home market to opt for an easy life based on domestic success.

In particular, many private banks have found it difficult to break into Asia, but LGT’s Asian private banking assets increased by an annualised rate of 17 per cent between 2009 and 2016. Its Asian private banking assets have reached $50bn, based partly on this organic growth and partly on its acquisition of ABN Amro’s private banking business in Hong Kong, Singapore and Dubai in 2016. Mr Piske credits this to having a long-term focus. 

“We have been operating in Asia without interruption for over 30 years and have a very stable management team there. During that time, we have continuously expanded the business, which gives us credibility.”

Mr Piske also thinks the firm’s royal pedigree goes down well in Asia. As he puts it: “We have an interesting story to tell: our owner, the Princely House of Liechtenstein, has built, preserved and developed its wealth over a period of 900 years. That is an impressive track record.”

Some acquisitions by other private banks have gone badly over the years, but LGT’s in Asia and other markets have generally gone well so far. It has also acquired Vestra in London. “Cultural fit is a very important factor for us when it comes to acquisitions,” says Mr Piske. 

“During the due diligence process, we very carefully consider whether management and the employees are a good fit for us. That isn’t something that can be quantified or determined precisely. Instead, it often depends on the various impressions we get during the various discussions and interactions.”

In the SRI field, the private bank, which has been highly commended in the SRI/Impact Investing category, has developed the LGT Sustainability Rating, which provides transparency in terms of the sustainability characteristics of equities, bonds, funds and ETFs using clearly defined criteria and a broad pool of data. DT

Best Private Bank in the UK;
Best Private Bank in Europe for Succession Planning
Coutts

Coutts, which manages £18bn ($23.7bn) for more than 60,000 clients, is targeting clearly-defined groups in both its marketing push and when structuring its servicing proposition for different niches. This means the UK bank is looking increasingly at how it works with professional practitioners, company executives, international business people, landowners, sports stars and entertainers. The idea is to be able to service clients with more tailored advice across their full family balance sheets. 

Bank bosses believe a key weapon is expertise in succession planning, which helps empower clients to develop a vision and strategy for their family’s future, also enabling the preparation of future generations to run businesses and philanthropic interests.

Indeed, Coutts insiders like to talk about two sides of the wealth succession coin – one focusing on technical solutions such as wills and trusts, the other on both strategic and emotional questions such as developing a family strategy and defining the purpose of their wealth. 

“Aside from ensuring they have enough to support their lifestyle for the rest of their life, many clients look to use ‘surplus’ wealth to support the next generation, invest in business start-ups or support the charitable causes or communities that they care about,” says Lenka Setkova, executive director of the Coutts Institute.

The bank also warns that sound structures and planning must be in place in order to avoid mistakes or “unintended consequences” of passing on wealth to the next generation, family, friends or charities. YB