How leading Polish private banks have become clients’ trusted partners
Krzysztof Bratos
Although still fairly new by European standards, the Polish private banking sector is proud of its 25-year-long history. But things have changed since it all started in the early 1990s and the offer is much closer to Swiss and British private banks’ than you may think, writes Krzysztof Bratos, Head of Private Banking, mBank
In the early stages, the needs of the first high net worth individuals in Poland were fairly basic. The offer concentrated around simple banking products with a prestigious feel. The next 15 years brought enormous economic growth to the country. Private banking clients were keen to be part of that growth and were given that opportunity through various investment vehicles. Short-term speculative stock investments, corporate bonds and closed-end funds brought the promise of double-digit performance, though at the cost of huge risk, extreme concentration and… high asset management fees. It was not sustainable and did not end well for some.
There are few Polish private banks that decided to follow a different path. Firstly, they brought holistic wealth management solutions and expertise. They had ambition to be trusted partners in managing complex wealth, rather than being labeled as investment products sellers or simple banking solutions providers. This approach helped to meet the emerging needs of succession planning, to integrate corporate and individual needs of clients, brought complex lending solutions and, finally, made investments far more mature.
Looking at mBank as an example, the second oldest private bank and the very first wealth manager in Poland, its investment solutions are very similar to what you will find in Zurich or London. Both advisory and discretionary portfolios are globally diversified, implemented through cost-efficient ETFs and carefully selected international mutual funds. Asset allocation is constructed based on global research obtained through cooperation with top asset management names in the industry. Home bias is limited with Polish stocks weighing less than 20 per cent, and the aforementioned short-term speculative opportunities are even forbidden. Meanwhile, responsible and ethical investments are part of the DNA – you will easily get an ESG investment strategy.
Of course, a very local and truly individual relationship is part of the package at far lower entry levels than those expected in Switzerland.
This article is sponsored by mBank
