Global Private Banking Awards 2018: Winners’ Profiles – National Winners (Middle East and Africa)

Best Private Bank in the Middle East;
Best private bank in Qatar;
Best Private Bank in Russia
Credit Suisse

While Credit Suisse competes mainly with other larger global banks, the Zurich-based player, overseeing SFr784bn ($787bn) in assets in its private banking arm, is increasingly coming up against a new group of local rivals.

“We are increasingly offering local solutions to our clients, so we are gradually entering the space where we compete more with local banks,” says a Credit Suisse spokesman.

The Russian market has been a key priority region, where Credit Suisse prides itself in having offered “uninterrupted presence in the market” since the early 1990s, offering the services of more than 250 relationship managers and specialists covering the region.

“In the environment of economic turmoil combined with increasing regulatory complexity and challenging cross-border requirements, we ensure continuous monitoring of the market and development of a deep understanding of the requirements,” says the spokesman. “This allows us to provide a solid platform for our customised service and unique product solutions for Russian clients.”

Many Russian clients use the Swiss bank as their core banking relationship to meet both corporate and private family needs. These client needs are well served by a holistic “one-bank” approach, claims Credit Suisse, a business model currently being closely scrutinised by shareholders and international investors.

Enhanced due diligence, practiced by the bank in all emerging markets, has been particularly important in Russia, with an international sanctions regime to comply with, against a backdrop of geopolitical unrest and some prominent money laundering cases.

“Continuous monitoring of the market by our Russia-dedicated business and controlling functions allows us to dynamically adjust policies and procedures for onboarding and maintenance of client relationships,” says the bank. YB

Best Private Bank in Bahrain;
Best Private Bank in Kuwait
Ahli United Bank

Established in Bahrain in 2000, Ahli United Bank (AUB) has a strong presence across the Gulf Cooperation Council (GCC) region.

The private bank has benefited from the group’s large geographical footprint, with 140 branches across Bahrain, Kuwait, Egypt, Oman, Iraq, Libya and the UAE, as well as offices in the UK. The AUB group employs more than 3,700 people from more than 40 nationalities, of which 35 per cent are women. 

According to Mark Hirst, deputy group CEO, the private bank’s business strategy has been focused on creating value through segmentation.

“Our focus has been to enhance the service that we provide to our important clients through our client segmentation, to ensure that our service teams can devote the appropriate time to meet our clients’ complex needs. This has enabled our relationship management teams to focus their efforts and time to deliver the outstanding service levels that our clients have come to expect from AUB,” says Mr Hirst. 

As a result, AUB’s private banking business grew in 2017, both in terms of assets under management and new clients across the region.

AUB’s wealth management product offering revolves around an open architecture model, including both conventional and Sharia-compliant investment solutions. 

Recent product launches include a number of bespoke real estate private equity products targeting the UHNW segment. These products were introduced in response to key demographic trends in the US, including the demand for specialised housing from ageing ‘baby boomers’, and the preference for renting among ‘millennials’. 

During 2017, the bank “successfully” closed a US senior housing real estate transaction, and also offered clients the opportunity to invest in a US multi-family real estate private equity fund.

Having established a strong platform for the traditional asset classes, the bank is planning to expand its product suite into the alternative investment space, as well as enhance its range of Islamic wealth management products “to meet the needs of this important and growing client base”. PG

Best Private Bank in Lebanon;
Best Private Bank for Customer Service (Middle East)
Audi Private Bank

Local player Audi Private Bank has won in the Lebanon category for the fifth year running.

The private banking arm, which has $4bn under management, including a large proportion on behalf of ultra-high net worth individuals, continues to innovate. For example, it is introducing a new discretionary mandate that will be invested according to sustainable and responsible investment criteria – responding to the increasing interest among private banking clients across the industry, as they see the financial return as well as ethical arguments for this. The bank says that there are suitable “socially motivated” investors for this product in Lebanon. 

It has also introduced a flexible equity product which aims to take advantage of market opportunities. It is an absolute return product designed to weather the market cycle by increasing and reducing cash positions.

As to what comes next: “We are continuously monitoring new investment trends with a focus on tech, biotech, AI and robotics sectors and look forward to benefit from such investment opportunities,” says the bank. 

In a country where personal trust matters a great deal, Audi Private Bank continues to strive to maintain the long tenure of its private bankers, which averages nine or 10 years.  DT

Best Private Bank in Mauritius
MCB Private Banking and Wealth Management

The aim at MCB Private Banking and Wealth Management in Mauritius is to position itself as the reference point in the region for premium banking and wealth management expertise. This means that as well as catering to its local clients, mainly owners of family business, businessmen and entrepreneurs who have built their wealth over time, and international clients with a presence on the island, it is also looking to expand into other geographies.

In a joint collaboration between its wealth management and corporate and institutional banking arms, MCB recently set up an Africa desk, the aim being to tap into the entrepreneur segment on the continent, targeting those in west Africa in particular. The bank also plans to establish a physical presence in Abidjan, the economic centre of Côte d’Ivoire.

“Our aim is to capitalise on the ongoing momentum which is seeing a broadening of the high net worth client base on the continent as countries register robust economic growth as well as interesting demographic and urbanisation trends, leading populations to boost their wealth levels and to increasingly look out for investment management destinations,” says Alain Law Min, chief executive officer at MCB.

The private bank believes its clients, be they local or international, place great value on the personal service it provides, with both segments being treated in a similar fashion.

One recent innovation, launched in December 2017, was the ‘My Concierge’ service. Available via telephone, online, or through a dedicated app, this service aims to enhance clients’ lifestyles through features such as a dedicated personal assistant, a home assist service, facilitating travel arrangements, and priority bookings at restaurants and entertainment events. 

“While being at the disposal of our overall client base, this service is, understandably, mostly availed of by our local clientele,” says Mr Law Min. “Since its launch, the service has, so far, witnessed sustained market interest and an impressive number of subscriptions.” ES

Best Private Bank in Nigeria;
Best Private Bank for Customer Service (Africa)
Standard Bank Wealth and Investment

Many outside observers underestimate the cultural differences between different countries in Africa, but Standard Bank Wealth and Investment has clearly navigated these waters well, establishing successful businesses outside its home country of South Africa.

The wealth manager now has branches in Kenya, Ghana, Nigeria and Uganda, as well as in London and the offshore centres of Jersey and Mauritius.

Nigeria in particular has become a glittering prize for private bankers because of its growing wealth – in 2013 it overtook Standard Bank’s home country to become the largest economy in Africa. Standard Bank Wealth and Investment’s growth in Nigeria over the past couple of years has been rapid. “The need for bespoke wealth planning is becoming more and more crucial in Nigeria as the market matures and incomes improve,” says the wealth manager. However, it also notes that the Nigerian market is complex, with “heightened risks”.

One complexity in Nigeria is that a significant proportion of the wealth is held by Muslim families, who often want to invest according to Islamic principles. The wealth manager offers a Sharia portfolio, which has two layers: a quantitative analysis of the permissibility of the investment, and a quantitative financial ratio analysis. “The development of Islamic banking solutions is on the rise in many countries in Africa, including South Africa, and we continue to expand our offerings in this space,” says the wealth manager.

The private banking industry in general is keen to develop services compatible with Islamic principles, but has been less united in embracing the concept that investment planning should start with customers’ emotional needs. Standard Bank Wealth and Investment has planted itself firmly in the camp of those private banks that believe emotional needs should be at the heart of the matter. It says: “We have shifted the focus to first ask the client: ‘What matters to you and your family?’ This approach to customer service seems popular with clients.

Although the majority of Standard Bank Wealth and Investment’s assets under management are in South Africa and Nigeria, Kenya and Ghana are seeing the fastest client growth. The wealth manager says this reflects interest from both local and overseas-based high net worth investors in the growth potential of the regions in which these two countries are located. DT

Best Private Bank in Oman
Bank Muscat

Bank Muscat, a local player which claims to be the leader in market share, wins in Oman for the second year running, where it serves a mixture of native Omanis and expatriates. 

Middle Eastern private banking markets can be hard for outsiders to navigate, but bank Muscat, with $1.15bn in client assets which it manages on a non-discretionary basis, has an instinctive understanding of local priorities.

For example, the private bank addresses what it calls the “lifestyle needs” of customers by providing finance for luxury yachts and luxury cars. It also responds to the strong client interest in real estate and offshore investments.

The private bank takes training seriously: a dedicated division, Learning & Development, focuses on training team members in customer service and product offerings. It also educates clients through investment seminars. 

Assets under management grew 11 per cent in 2017. Private wealth is rapidly increasing and the institution uses social media – even more important than in other regions because of the Gulf’s young, tech-savvy high net worth population – to tap into this growth by building brand awareness.

Bank Muscat Private Banking maintains service quality through surveys to gauge client feedback. DT

Best Private Bank in South Africa
Investec

Investec has won in this category for the sixth year running, after a strong year both in South Africa and globally – operating income showed another double-digit increase, rising 14 per cent to ZAR6.882bn ($458m).

The private bank partly credits this to its efforts to build specific product and value propositions for each segment when acquiring clients. Its acquisition strategy includes different propositions for accountants, lawyers, medics and degreed, salaried executives at leading corporates. The private bank also further segments by life stage, with different approaches for young professionals, young families, ultra high net worth individuals and business clients. For example, young professionals can access the full offering for a reduced monthly fee. 

The private bank also has even younger clients in mind. In 2017, it launched the Investec Youth Account, a fully transactional account, but for no monthly fee, available exclusively to the children (those under the age of 25) of existing private bank account holders. Hitherto, they had to go into a bank branch and endure queues to open an account for their child. Under the new system, however, the process is online, with their Investec Visa card delivered to their door. Investec says parents have welcomed this innovation, partly because they wanted a way to teach their children practically about banking and the value of money and saving. 

“The Youth Account not only exposes the children, who are also prospective future clients, to our private banking products and services,” says Investec. “It has also improved and strengthened our relationships with families.”

In 2017, the number of client-facing staff at the private bank, which topped 800, rose by much more than the number of clients. Investec credits this to a current focus on client acquisition, with headcount also increasing in anticipation of higher client numbers.

The wealth manager remains a big offshore specialist, servicing 45 per cent of assets under management which are invested offshore. This expertise includes teams of tax and fiduciary specialists who guide clients in navigating “the increasingly complex global regulatory environment”. Offshore services are made easier by the large network of offices around the world, including a presence in the offshore centres of the Channel Islands and Mauritius. 

Investec adds: “As clients are becoming more global, with assets and properties spread across the world, the need for global expertise is increasing.” DT

Best Private Bank in Turkey
Akbank Private Banking

In 2017, Akbank’s private banking activities and the investment service functions of its retail bank were transferred into a new division under the name of Akbank Private Banking and Wealth Management Services.

The private bank offers both standard banking services and alternative financial products through a network of seven dedicated branches across Turkey – in Istanbul, Ankara and Izmir – and private banking ‘corners’ at some retail branches.

Private bankers are supported by specialists from the group’s investment affiliates, Ak Investment and Ak Asset Management. “We provide privileged service to our clients, assist them with their investment decisions, and generate custom solutions tailored to specific clients, as needed,” says Alp Keler, private banking and wealth management executive vice president.

The vision of Akbank Private Banking is to maximise customer experience and simplify business processes, with the support of technology and digitalisation. With that in mind, efforts have been made to improve and redesign the experience provided to upper segment clients.

“Ultra high net worth clients have exceptional and sophisticated requirements, therefore an expert team has been dedicated to provide them with advice and tailor-made solutions. Our strategy has been to focus on offering a more sophisticated service to this niche client segment, in order to generate a higher profit/client ratio. We are doing this through our holistic approach to family wealth, the redesign of our premium customer experience, and our new, integrated business model with our investment affiliates,” Mr Keler explains.

This new, more integrated approach to private banking also entails developing solutions for transferring family wealth to the future generations, an area where Akbank has been focused on since launching its ‘Next Generation Programme’, in collaboration with the Sabancı University and the Centre of Excellence in Finance. First of its kind in Turkey, the initiative aims to educate young people on the concepts of family wealth and responsibility, investment diversification, risk, economics and philanthropy. PG

Best Private Bank in the UAE
Julius Baer (Middle East) 

Julius Baer’s decision to make Dubai the hub of its emerging markets activity clearly shows the bank’s confidence in the growth opportunities in the region. 

 “Julius Baer’s core strategic priorities are rooted in capturing strong wealth creation dynamics in the Middle East, expanding our client portfolio, and increasing our market penetration,” states Rémy Bersier, head emerging markets and member of the executive board at Bank Julius Baer.

The Swiss institution was the first international private bank to be granted a licence to operate in the Dubai International Financial Centre in 2004, and since then it has boosted its geographical presence, with additional offices in Abu Dhabi, Beirut, Cairo and Manama offering advisory and wealth management services.

“Over the years, we have achieved a high level of local market understanding which further helped us foster trusted relationships with clients,” adds Mr Bersier. Being a pure private banking player, its open architecture approach, client-centric model and innovative mindset are its key differentiating factors, he says.

Most of the wealth in the Middle East is concentrated in family run businesses, and countries are kingdoms run by royal families, who expect high levels of service. “Investors across the GCC [Gulf Cooperation Council] are becoming increasingly sophisticated, in terms of their knowledge of financial products and investments, and have become far more demanding of the quality of advice they expect from banks.” 

To counter global macroeconomic headwinds, clients are looking for investments that protect their capital, while meeting their specific needs, he adds. “We work closely with all our clients to determine their investment and risk profile, and then accordingly provide them with bespoke advice for their needs.” One area they “constantly” advise clients on is the diversification of their assets, as this represents the starting point for building a portfolio.

Unlike many competitors, Julius Baer enjoys a very low staff turnover in the region, claims Mr Bersier. This year, it has also broadened its base of experienced relationship managers in several teams covering the Middle East, with more expected to join.ET