Global Private Banking Awards 2020: Winners’ Profiles – National Winners (The Americas)
Best Private Bank in Latin America;
Best Private Bank in Colombia
BTG Pactual
BTG Pactual’s wealth management business has grown steadily across Latin America over the last few years. Alongside its regional expansion, the business has opened new offices in the US and Europe with the aim of boosting its international investment offerings.
“This unique powerful combination puts our clients with the best of two worlds: the close relationship and regional expertise of a local bank, combined with the diversification and sophistication of international products,” says Rogerio Pessoa, head of wealth management.
The bank’s large investments in technology contributed hugely to its ability to cope with the many challenges of 2020. Being able to onboard new clients and service existing ones digitally, through the bank’s portal and apps, was crucial during the coronavirus outbreak.
“We already had tools that allowed virtual meetings to a point where we are able today to be closer to clients compared to the period when physical meetings were a norm. We were able to service our clients with the same level of agility and flexibility, two of BTG’s well known characteristics,” Mr Pessoa says.
In terms of investment products, the prolonged low interest rate environment has pushed clients to seek new sources of returns. Mr Pessoa points to alternatives, thematic investments and ESG as areas of growing interest among their clients.
“We saw growth in [ESG] products in 2019 and the trend continues in 2020. Some families are already actively engaging in these drivers for portfolio allocation, especially as second and third generations take responsibility for family portfolio allocation,” he says.
Also, clients have continued to show appetite for investment in technology. “BTG Pactual, as a leader in technology in the financial sector in the region, has not only been able to source quality products but also spur client’s interaction with tech ecosystem through Boostlab, our corporate venture arm.” PG
Best Private Bank in Bermuda
The Bank of N.T. Butterfield & Son Limited
Established in Bermuda as a private bank in 1858, Butterfield is the only financial services provider in Bermuda to offer banking, trust, asset management, advisory and custody services.
With banking operations in the Cayman and Channel Islands, trust subsidiaries in seven international financial centres (IFCs) and a specialist lending operation in London, the bank offers local clients access to international services and products, such as secure financing on London investment properties or trust structures available only in certain locations. It also provides international clients abroad with access to Bermuda’s advisers and select structures, products and services.
“Our international footprint means that we offer the best combination of international access combined with deep local market expertise,” says Nir Sadeh, head of private banking at The Bank of N.T. Butterfield & Son Limited.
Its asset management division has a “strong” track record, dating back to 1997, of managing clients’ assets through various boom and bust investment cycles. “With more than $5bn in AuM we are big enough to compete globally for large mandates, but our structure makes us nimble enough to service HNW individuals with bespoke solutions and personalised service,” he adds.
Due to the pandemic, wealthy, international families are interested in diversifying their holdings and “are casting a wider jurisdictional net for holding and managing assets”. They are also increasingly mobile, which could boost demand for offshore residency and the use of IFCs.
These trends may benefit IFCs such as Bermuda. Here the local government has done “an excellent job” of managing the pandemic and has introduced a one-year residency programme for financially independent individuals and those who can work remotely to aid recovery of the local economy, which has attracted “significant interest”.
Against a background of rising global geopolitical and economic uncertainty, HNW families are also increasingly looking for options for safeguarding wealth, to ensure it can be protected and transferred to future generations. Despite still suffering from the stigma of being ‘offshore’, Bermuda has a long history of stability and Common Law tradition, which make it an attractive domicile for the protection and transfer of assets, says Mr Sadeh. ET
Best Private Bank in Brazil;
Best Private Bank in Latin America for Customer Service
Itaú Private Bank
Latin America as a whole has had a challenging year in 2019, but economic policy and a strong reformist agenda helped Brazil fare better.
On a structural basis, the country’s capital markets were very active during the year, driving new liquidity events. “We were able to attract net new assets from the competition and also from this new wealth and liquidity creation,” says Luiz Severiano, CEO at Itaú Private Bank. “Our structure and positioning played the strongest roles in attracting new clients and motivating our current customers to continue concentrating their investments with us.”
As interest rates remained low, the bank focused on further expanding its investment platform, adding new investment solutions both in the traditional and alternative investment areas.
Itaú Private Bank’s strategy is built on four pillars: client centricity, sustainable partnerships, constant evolution, and relationships built on trust. The bank believes that the success and sustainability of its business requires relationships of trust with clients, as well as the delivery of outstanding financial advice and services.
“In order to do that, we need to be the trusted adviser of the client: help them with their wealth planning needs and investment advice, locally and abroad, in addition to using our corporate and investment bank structure to help them with their businesses, real estate investments and other real assets. And we need to do that in a very customised manner, understanding each client’s needs, circumstances and aspirations,” Mr Severiano explains.
Covid-19 presented the business with challenges requiring adjustments to the bank’s operations. But the pandemic has not altered the bank’s growth plans – so far in 2020, net new assets have sustained last year’s record levels.
“We had already been preparing for a more intensive use of technology, and this advance investment allowed us to decisively shift 100 per cent of our operations to the home-office model and provide our complete range of services at a distance,” he adds. “Our relationships with our customers have grown even stronger as they have recognised our dedication and efforts to maintain our high service standards.” PG
Best Private Bank in Canada
RBC Wealth Management
RBC Wealth Management continues to enjoy a leading position in Canada’s wealth management industry, with the largest market share of HNW assets. The bank enjoyed a strong year in 2019, reporting net income of C$2.6bn ($1.9.7bn), up 13 per cent from a year earlier.
In Canada, the bank continued to focus on holistic wealth planning, including adviser training on intergenerational and business wealth transfer. “We fully rolled out RBC Premier Banking to deepen banking relationships with wealth management clients, and enhanced our digital and data capabilities to drive increased client satisfaction and adviser productivity,” says Jennifer Publicover, senior vice president, wealth management products and strategy.
During 2019, RBC launched RBC iShares, a strategic alliance with iShares with which investors can access the largest and most comprehensive ETF solution suite in Canada.
“Canadian investors deserve a level of choice, quality and value that is second to none – and that is what RBC iShares delivers,” Ms Publicover adds. “This alliance will deliver value to Canadian investors by bringing them the ETF products they trust, the world class investment talent they want and the service they deserve – all in one place.”
As the coronavirus crisis unfolded, RBC acted fast to guarantee business continuity, providing employees with the secure technology needed to work offsite and to safeguard client’s financial information at all times.
“We entered this crisis from a position of strategic and financial strength, with one of the strongest balance sheets of any bank. Our core client beliefs remain on the need for personalised holistic advice, with heightened focus on streamlining end-to-end client experience (eg digitalisation) and delivering One RBC value to HNW clients,” she adds. PG
Best private bank in Chile
LarrainVial
Social unrest in Chile, which started at the end of 2019 in response to the increased cost of living, privatisation and wealth inequality, had led many clients to shift their portfolios to very conservative or short-dated investments. The pandemic has been an opportunity for many of them, who had been caught out by the market rally, to get back in, explains Gonzalo Córdova, head of wealth management at LarrainVial.
Clients’ concerns today revolve around the political-social challenges the country is facing, namely the programme of promised tax reforms, the new constitution process and presidential elections. Through seminars and online talks, the bank has provided clients with information on these topics, while it has been recommending they invest in international assets, benefiting from the bank’s open architecture model, in the US dollar and other foreign currencies, and in sectors such as technology, telemedicine and logistics.
Striving to offer a holistic approach to client servicing, LarrainVial has developed a digital tool, called My Objectives, which allows clients to define different life objectives, each matched to unique investment recommendations. “A holistic, goals-based approach is very important, as it helps clients build the life they want by working to achieve their goals,” says Mr Córdova.
LarrainVial is allocating a large part of its resources to improving its digital platform, LV Digital. “The most interesting client segments will be younger customers and those seeking excellence in service through highly secure and digital solutions,” he says.
Technology skills and a team of young financial advisers “very comfortable with technology” allowed LarrainVial to quadruple the number of clients participating in its digital events, including talks, seminars and product presentations, during the pandemic. The bank was also able to bring in new clients, as onboarding and self-service investment processes can be entirely carried out online. ET
Best Private Bank in Mexico
Santander Private Banking
Santander Private Banking has built a strong presence in the private banking sector across Latin America and Europe.
During 2019, the bank’s main strategic focus was on organic growth around five key priorities: the launch of a global value proposition; strong value-added product offerings, ranging from tailor-made structured products to alternative investments and solutions; a unique and global offering for UHNWI; further digital transformation; and the strengthening of their global brand as one that connects with clients and represents the firm’s values.
“Also, our close collaboration with Santander Asset Management in Latin America has driven us to further develop our ESG offering for private banking clients, showing our full commitment to sustainable investments,” says Víctor Matarranz, global head of Santander Wealth Management & Insurance.
The Covid-19 outbreak has not changed the bank’s plans for further growth. Business continuity plans during the pandemic proved successful, allowing the bank to carry out day-to-day transactions without lowering standards. If anything, the pandemic has accelerated the bank’s digital transformation, examples of which include the implementation of developments in client onboarding and cybersecurity measures.
The private bank recently launched its ‘All Access’ global platform, which takes advantage or its presence in 10 different markets. “This global offer, alongside our focus in the private wealth segment and an increase in value added solutions, gave us a unique position in Latin America that our clients appreciate and value,” Mr Matarranz adds.
According to Guillermo Barreyra, head of Santander wealth management and insurance in Mexico, key drivers behind business growth in this market were the introduction of a totally renewed commercial system where product and commercial areas converge with common strategies, objectives and budgets, the strengthening of their UHNW segment, and a more robust product and service offering. PG
Best Private Bank in the US
Northern Trust
The physical distancing necessitated by the onset of the Covid-19 pandemic has seen increasing numbers of deals contemplated by family offices which have worked together in the past, with new partnerships less frequent.
“Our Global Family Office and Private Investment Services have, during the Covid-19 crisis, created very meaningful ways to engage with our family office clients and help them share the value of our network,” suggests Steven L. Fradkin, president, Northern Trust Wealth Management.
Investment themes are often identified and developed within the Northern Trust Institute, which houses the wealth manager’s intellectual capital. In this environment, they are combined with behavioural science patterns, before being introduced to clients.
These investment ideas are often deployed within Northern Trust’s ‘Goals Driven Wealth Management’ approach, taking up an increasing chunk of the bank’s $314bn under management. While Northern’s managed assets posted a 13 per cent increase in 2019, the GDWM assets were 48 per cent up.
“Importantly, our methodology positioned our clients to successfully navigate the markets amidst the uncertainty of Covid-19,” says Mr Fradkin. YB
