Global Private Banking Awards 2020: Winners’ Profiles – National Winners (Western and Northern Europe)
Best Private Bank in Europe;
Best Private Bank in Switzerland
Pictet
Thematic investments, which have been Pictet’s hallmark for the last 20 years after the launch of the bank’s Water fund, have proved particularly successful during the past few months of the Covid pandemic, with the healthcare and tech sectors coming into sharp focus.
“By identifying the megatrends behind those thematic strategies, we believe we can select the long-term winners in the global stockmarkets in areas as diverse as health, robotics, smart city or security to mention just a few,” says Sven Holstenson, head of Europe onshore at Pictet Wealth Management, which oversees $610bn of client assets globally.
“In the current environment, certain companies are actually able to grow in spite of the recession,” he says. “The healthcare sector, the tech sector or the environmental economy in particular offer opportunities. These three clusters are areas where Pictet has developed a distinctive investment expertise. Those are very promising sectors that have done well in recent years, and that still have enormous potential.”
But it is the area of private assets, exploited by Swiss private banks in particular, that has enjoyed perhaps the strongest demand from international wealthy families. “We expect persistently low and falling interest rates to drive investors to higher-yielding and risk-diversifying private assets,” says Mr Holstenson. “Private equity, hedge funds and real estate are to become ever more mainstream in the near future and will no longer be considered alternative.”
Observers of Swiss private banking say that this investment strength has been fuelled by Pictet’s success as an asset manager. “Wealth and asset management are two equally strong pillars of the bank – in terms of earning power and assets under management. There is no prioritisation but rather a reciprocity between both business lines,” says Mr Holstenson. YB
Best Private Bank in Belgium
KBC Private Banking
KBC Private Banking experienced high growth in operating profits last year, driven by double digit growth in AuM and the inclusion of new business lines, such as insurance, in private banking activities.
Among innovations introduced by the private bank last year, its ‘plan for the future’ tool has been much appreciated by clients, as it provides them with an overview of future income and expenditure, taking into account personal needs and goals.
Non-banking services in the KBC Mobile app, such as airport lounge reservations, registered e-mails and a digital safe, were also popular, says Achille Boeyé, marketing manager at KBC Private Banking.
The bank has taken major steps to build a ‘phygital’ approach, whose main building block is an engine called Iris, which screens private banking portfolios daily based on a risk-return factor algorithm, developed by the group’s asset management arm. Alerting the private banker of any changes required to the client portfolio, it frees up their time, allowing a more customised advice.
“The significant investments in digital transformation made by KBC over the past years has clearly paid off and ensured that we could continue to serve our customers flawlessly during the pandemic,” says Mr Boeyé.
Bankers have proactively kept in touch with clients, while webinars were very well attended during the lockdown. As a result, the bank recorded an increase in its net promotor score.
It was also particularly important for employees to feel that the organisation was looking after their wellbeing. “Clients and employees need contact and trust: be present, even when you’re distant,” recommends Regine Debeuckelaere, general manager, KBC Private Banking and Wealth. ET
Best Private Bank in Denmark
Nykredit Private Banking
Nykredit Private Banking was established as a separate business unit within the Nykredit Group in 2004. Today, the team comprises private bankers and wealth specialists in areas such as wealth and tax planning, wealth management, credit, inheritance, succession planning, cash management, and business and home financing.
In order to respond to the changing nature of private banking services, Nykredit introduced a new business strategy called ‘Next Level’. The strategy is based around two key principles: one is to update the business fundamentals; the other to create holistic experiences which exceed their clients’ expectations.
“The first point is concerned with restructuring our business and value proposition into a modern, hybrid business model, combining human interaction with digital offerings” explains Lotte Månsson, director, Nykredit Private Banking Elite.
“The second point relates to our strategic aim of becoming our clients’ financial confidante. In this new hybrid way of doing business, the relationship between private banker and client has changed and we think it will continue to take new forms over the next couple of years. It will require financial institutions to develop new skills – importantly, skills related to emotional intelligence.”
For the past couple of years, Nykredit has been working extensively to add new investment solutions to its portfolio, particularly in areas of ESG and alternatives. “The demand from our clients is continuously increasing, but more than just meeting the demand we want to work together with our clients to structure strong investment strategies that delivers both monetary and personal value,” Ms Månsson says. PG
Best Private Bank in France
BNP Paribas Banque Privée France
Having successfully modernised his bank more than most in terms of digitalisation and compatibility with needs of the next generation, BNP Paribas Wealth Management CEO Vincent Lecomte is now concentrating on linking up the work of the group’s investment banking and private banking arms.
Unlike other European players, who experimented in Asia and then pulled out, he is prioritising both the north and south of the continent, expanding staff and resources in Indonesia, Malaysia and Singapore, as well as Hong Kong.
But it is closer to home that the French bank is looking to both consolidate and boost its position, particularly in France and Germany. The bank has facilitated and encouraged real estate purchases in these jurisdictions. It sees this co-operation with its corporate and investment banking (CIB) arm as “at the heart of our model in Europe”.
This partnership marks a significant change to the state of play 10 years ago, when investment banking very much ruled the roost, particularly in France, where the private bank was seen purely as a distribution channel for products created elsewhere in the group.
“The mindset has really changed,” says Mr Lecomte. “What the group CEO now expects from us is to leverage the best of breed of all the businesses to the benefit of our clients.”
Despite vast expenditure on digitalisation, this will remain very much a “people business”, based on “trust and expertise”.
While the bank, during the Covid crisis, has definitely seen the benefit of this long-term investment in the client experience, the next stage is to integrate sustainability into the formula, in particular converting customers’ portfolios and mindsets to a much deeper penetration of ESG principles. YB
Best Private Bank in Germany
Berenberg
Established in 1590, Berenberg is one of the world’s oldest banks. Privately-owned and run by its managing partners, the Hamburg-based bank today employs around 1500 people at 15 different locations across Europe and the US.
The bank has identified three groups of clients with specific wealth management needs – entrepreneurs, foundations and family offices. In order to serve each group, Berenberg has established three centres of competence with experts on topics of special importance to their respective target group.
Berenberg’s wealth management and asset management divisions work closely together with the aim of offering clients a broader product range. “As diverse as the divisions are, they are all united by our determination to provide clients with top quality, objective advice, the best possible service and excellent execution,” says Klaus Naeve, head of wealth management. “Berenberg will continue to focus on the service offering and pursue very conservative risk management.”
In 2019, Berenberg enjoyed strong performance from both its wealth management strategies and the range of fund solutions developed in-house. In addition, the bank was able to offer clients a number of alternative investment solutions including direct corporate investments, private equity, as well as investments in digital infrastructure and real estate.
Two years ago, Berenberg opened its ‘ESG-Office’ to respond to the increasing demand for sustainable investments from clients. “The interest amongst our customers for products and services that connect economic, ecological and social criteria is continuously rising. More and more private clients, charitable foundations, churches, non-profit organisations and institutional clients such as pension funds want to combine financial returns with sustainability aspects,” says Mr Naeve.
The need for advancing digitalisation has been another factor calling for constant action within the bank. Alongside various automation projects, the firm introduced a new online banking system in 2019, the Berenberg Wealth Management Portal. PG
Best Private Bank in Hong Kong;
Best Private Bank in the UK
HSBC Private Banking
HSBC is seen by many in Hong Kong as a domestic bank. Its iconic building is one of the mainstays on the territory’s skyline. The bank is a natural “go-to” institution for many wealthy local families.
“Over the past three years, we have invested heavily in our capabilities, recruited significantly to expand our teams and delivered a refreshed UHNW client proposition to enhance our bespoke offerings,” says Siew Meng Tan, regional head for Asia-Pacific, HSBC Global Private Banking.
One of the challenges for the bank has long been how to replicate this fame and brand-recognition in Hong Kong, with a similar penetration in surrounding countries. “Our ambition is to become the leading wealth manager in Asia,” says Ms Tan. Her plan is to provide a more distinctive experience for wealthy clients, particularly in the Asean region, by building up greater expertise in Singapore.
“As a key global booking centre for HSBC, Singapore will also be integral to our growth, especially as we continue to extend our capabilities and reach to serve international clients across Asean and the rest of the region where fast-rising wealth is boosting awareness and demand for private banking,” she says.
In Asia, as in Europe, the bank is striving to improve its connectivity between different pockets of expertise, something HSBC has sometimes struggled with in the past, despite promoting an international mindset.
“Many clients have interests all around the world and so need a bank that can operate in many different jurisdictions and can look after them worldwide,” says Charles Boulton, CEO of HSBC Private Bank, UK.
More than ever since the advent of Covid, HSBC understands the importance which clients are attaching to investment performance and management of risks. During the crisis, it reshaped its approach to private equity, working closer with experts at HSBC Global Asset Management. It is also stepping up efforts to work more closely with clients in the spheres of real estate and structured products. YB
Best Private Bank in Luxembourg;
Best Private Bank in the Netherlands
ING
ING launched its private banking service in 1998, making it the youngest private bank in the Netherlands. Being part of a global banking group, however, has given ING Private Banking a great platform for growth.
The bank prides itself on having clients’ aspirations as the starting point of what they do, whether the interaction is digital, remote or face-to-face.
Next to a strong ‘human touch’ approach, there has been an increasing focus on the bank’s digital capabilities in recent years, which has proved crucial during the Covid-19 crisis.
“Our first priority was and is the health of our clients and staff and, meanwhile, safeguarding the continuity of our service. Our digital capabilities really helped us here in providing a seamless experience,” says Léon Wijnands, head of private banking and wealth management in the Netherlands.
The bank’s ultimate goal is to reinvent the concept of private banking and set a new industry standard through creating a “truly seamless omnichannel private banking experience”. The development of propositions such as ‘forward planning’, ‘digital investment proposal’ and the ING investment app, are contributing towards delivering those ambitions.
“Data helps us to get better understanding and clear targeting. Digital helps us to serve our customers in the way they prefer. And last but not least the quality, expertise and customer centricity of our people is highly appreciated by our clients. That is why they entrust us with their business,” adds Mr Wijnands. PG
