Private banks rewarded for excellence

The most high profile winner at the awards ceremony, attended by 250 bankers from more than 30 countries was UBS Wealth Management, headquartered in Zurich, which scooped gongs for best overall global private bank, best in Asia, best global brand and best performing bank according to quantitative indicators, screened by Scorpio Partnership.

UBS collects the award for Best Performing Private Bank

Other major achievements came from France’s BNP Paribas, which won closely contested scraps for its home market, for neighbouring Belgium for philanthropy services and for socially responsible investing.

Geneva’s Pictet topped both the European and Swiss categories, Northern Trust won judges’ votes for both the US and innovation. OTP Private Banking was voted best across Central and Eastern Europe as well as in its native Hungary.

Yuri Bender, PWM's Editor-in-Cheif, speaking at the awards

PWM’s Editor-in-chief, Yuri Bender, who presented the awards, talked about many banks starting to differentiate themselves by their asset management expertise, now that the traditional banking secrecy and tax-led advantages had been consigned to history.

“Private banks are re-inventing themselves and redrawing their business models,” he said. “The push to onshore compliant business is also driving the rise of the domestic giants, in the European markets of France and the Netherlands, and in the developing markets of Brazil, Mexico and South-East Asia. These are banks with a strong domestic franchise, but they are also looking across borders.”

However, the deep problems which the industry is experiencing were also acknowledged. “We have already seen two Swiss private banks shut up shop in recent times and hefty fines given to others in settlement with the US authorities,” said Mr Bender, with a warning of more such settlements to come, possibly later this year.

Seb Dovey of Scorpio Partnership

Client research must take on an increasingly pivotal role for the future success of private banks, said awards judge and founder of the Scorpio Partnership consultancy Sebastian Dovey, in a short address to the audience.

“It is significant that clients are actually seeking out a much more streamlined relationship with the financial markets,” said Mr Dovey. “They never did want five to 10 private banking relationships and they are now searching for a centralisation of this. Clients are telling us clearly what they want next.”

Mirjam Staub-Bisang

The increasing importance of socially responsible and “impact” investing was stressed in a keynote address from Mirjam Staub-Bisang, an author and sustainable investments specialist.

Most new investments in these sectors come from women, entrepreneurs and the younger generation, she said.

But she also warned private banks to develop credibility if they are to succeed in this sphere. “Banks are not credible as do-gooders,” said Ms Staub-Bisang, adding that it generally had a low uptake when floated as an alternative to philanthropic giving.

“Some have tried it, but found it difficult to get profits, while others use it purely as a marketing tool,” she said.

UBS collects the award for Best Performing Private Bank