Lining up for success

PRIVATE BANKERJuly 2015 Issue 322 www.privatebankerinternational.com

•Interview: Metro Bank's private banking unit•New UK private bank Hampden & Co.

•Country Survey: Japan

Local and foreign private banks sharpen their focus on Sub-Saharan Africa as

the region's wealth market grows

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WealthInsight provides detailed data and insightful analysis on the world’s High Net Worth Individuals (HNWIs) and wealth sector. With decades of experience providing business information, WealthInsight helps organisations make informed decisions and win new business.

AAt WealthInsight’s core is our proprietary HNWI Database of the world’s wealthiest individuals. Around this database we have built a number of valuable research based products and services that make WealthInsight much more than just a rich contact list.

We work with and provide solutions for: Wealth Managers Private Banks Family Offices Technology Providers Professional Services – Consultants, Accountants, Lawyers, Real Estate Professionals Fund Managers, Asset Managers, Venture Capitalists Non-profits and Educational Institutions

For more information contact us at info@wealthinsight.comT: +44 (0)207 406 6553

Connect to Wealth Through Intelligence

About WealthInsight

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YSIS

EDITOR’S LETTERPrivate Banker International

The three (or more) P’sCONTENTSNEWS

2: NEWS DIGEST

3: NEWS BRIEFS

8: #CXFSASIA AWARDS 2015 WINNERS

10: NEWS DIGEST - RESULTS

12: TECH ROUND-UP

13: REGULATION ROUND-UP

15: PEOPLE MOVES

ANALYSIS

9: WEALTHINSIGHT

14: LIQUIDITY PROFILES

FEATURE

4-5: PRIVATE BANKING IN SUB-SAHARAN AFRICA

Sub-Saharan Africa is a region that is beginning to receive more attention from the private banking and wealth management industry. International and domestic private banks are revealing different approaches towards providing the best service as well as building lasting relationships with the emerging HNW segment in the region

6: INTERVIEW: HAMPDEN & CO.

Hampden & Co., a new entrant into the UK market, has adopted a traditional model based upon client relationships. John Schaffer speaks with Graeme Hartop, the bank's chief executive, to find out more

7: INTERVIEW: METRO BANK

Being a relatively new bank on the UK high street, and having launched its private banking unit only four years ago, Metro Bank is operating in a crowded wealth management market. However, Paul Riseborough, MD - customer propositions and private banking at Metro Bank, tells Meghna Mukerjee there’s always demand for straightforward private banking services

COUNTRY SURVEY

11: JAPAN

Japan stands out as the most significant area for wealth across Asia, with a significant population of billionaires and a highly developed economy. However, the country’s ageing population may pose difficulties in the future. John Schaffer delves into WealthInsight’s latest report findings

COMMENT

16: CHRISTIE'S

Paul Hewitt, head of client strategy for Christie’s in Europe, the Middle East, Russia, and India, reflects on the similarities between the art market and private banking industry

Follow Private Banker International

Search for @BankerNewsSearch for ‘Private Banker International – Timetric Financial Services’

While speaking to a senior banker a month ago over lunch, the topic of the ‘three P’s’ in banking came up, namely, product, process, and

people. The order in which banks place these three is important to note and continues to evolve.

Generally for most private banks, beyond offering an attractive product set, the main dif-ferentiator comes from the other two P's – the process of how these products are delivered to clients, and the people who are involved in these processes.

Private banks are increasingly investing in enhancing their process capabilities, from modernising the front-end and offering sophis-ticated digital platforms for both the custom-ers and staff members, to refurbishing the mid-dle and back office systems. Private banks and wealth managers have embraced the wave of technology and partnered with key vendors, and upgraded their internal IT infrastructures, to make the all-round processes as smooth as possible. Most banks are also re-strategising in order to achieve process success.

However, the private banking business has the relationship manager (RM) at its core. Over the last few years, the advent of automated-advisory services has come as a game-changer but the crux of the wealth man-agement business is still human relationships-based. It is all about that essential P – people

– who establish, manage, and sustain the client relationships.

For private banks, it has always been crucial

to invest in robust talent management agen-das. This ranges from providing RMs with the right tools in terms of digital channels that enable them to better understand the custom-ers’ needs, to training RMs and keeping their skill-set refreshed.

Every bank has different values and the bankers, who are at the heart of the firm, need to imbibe those values holistically. Correct training is important, now more than ever, to ensure strong know-your-customer (KYC) capabilities for private banks as well.

The importance of retaining talented and efficient people is equally crucial for private banks. This need is more pronounced in some geographies where competition for talented bankers is high.

For instance, the lack of quality talent is a long standing issue for the private banking industry in Asia, and the region is known for its high-growth wealth markets and increas-ingly high demand for quality RMs.

However, all in all, a fourth P is worth men-tioning in banking: propositions.

Private banks need to define their unique propositions to succeed in gaining and sustain-ing valuable relationships with clients. Indeed, private banks that focus on their proposition in people, process, and products will be the ones best prepared to take on opportunities and threats currently facing the private bank-ing industry as well as ensure the best perfor-mance (another vital P for the equation).

Meghna Mukerjee meghna.mukerjee@uk.timetric.com

WealthInsight provides detailed data and insightful analysis on the world’s High Net Worth Individuals (HNWIs) and wealth sector. With decades of experience providing business information, WealthInsight helps organisations make informed decisions and win new business.

AAt WealthInsight’s core is our proprietary HNWI Database of the world’s wealthiest individuals. Around this database we have built a number of valuable research based products and services that make WealthInsight much more than just a rich contact list.

We work with and provide solutions for: Wealth Managers Private Banks Family Offices Technology Providers Professional Services – Consultants, Accountants, Lawyers, Real Estate Professionals Fund Managers, Asset Managers, Venture Capitalists Non-profits and Educational Institutions

For more information contact us at info@wealthinsight.comT: +44 (0)207 406 6553

Connect to Wealth Through Intelligence

About WealthInsight

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SDIGEST Private Banker International

M&ARBC to sell Swiss private banking business to SYZ Group

Royal Bank of Canada (RBC) has signed a definitive agreement to sell its Swiss private banking business, RBC Suisse, to SYZ Group.

RBC Suisse, headquartered in Geneva, has nearly CHF10bn in assets under management (AuM) and is chiefly active in Latin America, Africa and the Middle East, which are complementary markets for SYZ Group.

With this acquisition, the AuM of the private banking business of SYZ Group will double, reach-ing nearly CHF22bn - making it one of the top 20 largest private banks in Switzerland.

Commenting on the deal, SYZ Group CEO Eric Syz said: "This acquisition will enable Banque SYZ to access new markets in Latin America, Africa and Mid-dle East, where strong entrepre-neurship, one of our founding values, is expanding. It also represents a major step forward in terms of the Group's growth strategy."

George Lewis, group head, RBC Wealth Management and Insurance, commented: "The decision to sell RBC Suisse fits with our stated long-term growth strategy to build a focused global wealth management business that serves high net worth and ultra high net worth clients in priority markets from our hubs in North America, the British Isles and Asia.”

The transaction, which is sub-ject to regulatory approvals, is expected to conclude in the third quarter of 2015. Financial terms of the deal were not revealed.

PRODUCTS AND SERVICESOld Mutual rolls out new Trust tools to support advisors

Old Mutual International has rolled out a new Trust Decision Tool and Trust Form Finder designed to provide advisors with additional support and improved navigation.

The new tools will also make it easier and simpler for advisors to choose which trust to use.

Available on the Old Mutual International website, the Trust Decision Tool will take advisers through a few simple questions before suggesting the most suit-able trust for their customer's circumstances.

The Trust Form Finder aims to automatically select the required documentation for the customer and advisor based on which trust they select.

Trust Form Finder will mainly be useful in professional trust company cases, where there are a number of different legal docu-ments that must all be completed.

Trusts, which operate as part of wealth management, are used in complex family situations such as forced heirship, avoid-ance of probate, or to mitigate inheritance tax liabilities and for the purposes of protection and control of assets.

Old Mutual International has developed a new 'trustability hub' to further help and support advisors using trusts. The hub will include useful guides, videos and articles.

STRATEGYCredit Suisse eyeing expansion in Asia

Swiss private bank Credit Suisse is reportedly planning to bol-ster its private banking business in Asia by raising headcount or acquiring a smaller firm, accord-ing to Reuters.

The bank's Asia chief, Hel-man Sitohang, in an interview to Reuters, said: "We are open to opportunities to grow the busi-ness via acquisitions."There's a challenge industry-

wide in Asia for experienced private bankers, but we have a number of solutions including training new staff at our Wealth Institute in Singapore or bringing them in from outside Asia.

The comments come after the bank's CEO Tidjane Thiam unveiled plans to set out a new strategy by end of 2015. This strategy is expected to focus more on Asian wealth manage-

ment and to scale back invest-ment banking.

Credit Suisse's pretax profit has almost doubled in the first half of this 2015 in the Asia Pacific region.

DEALSNomura partners with Japan Post, Sumitomo Mitsui to set up new asset management firm

Nomura Holdings has reached an agreement with Japan Post Bank and Sumitomo Mitsui Trust Bank to set up a new asset management company as well as develop asset management prod-ucts.

Under the terms of the deal, Nomura will hold a 20% stake in the new company, while Japan Post Bank will hold 45% stake, Sumitomo Mitsui Trust Bank a 30% stake, and Japan Post a 5% stake.

The new joint venture will be established with capital of CNY500m.

The new firm will start distrib-uting investment trust products through Japan Post Bank and Japan Post in February 2016, the firms said in a statement.

The new asset management firm will develop investment trust products designed to meet the needs of retail investors in the nationwide networks of Japan Post Bank and Japan Post.

This collaboration, which will further boost Nomura's asset management business in Japan, will not have a material impact on its consolidated results.

M&ABank of the West opens wealth management centre in CaliforniaBank of the West, part of the BNP Paribas' global wealth man-agement business, has opened its latest wealth management centre in Palo Alto, California.

The new centre will offer com-prehensive wealth management as well as banking services.

The new branch adds to the bank's other wealth management centres in California's San Fran-cisco, Palo Alto, Walnut Creek, Newport Beach, Los Angeles, Beverly Hills, Pasadena, as well as in Omaha, Nebraska, Over-land Park, Kansas, and Denver.

RESEARCHEuropean HNW investors want digital services from their wealth managers: Accenture study

European high-net-worth (HNW) investors are avid users of digital technology for manag-ing their finances, according to a survey conducted by Accenture.

The survey reveals that older investors are just as likely as younger investors to demand digital wealth-management services.

The survey found that 83% of HNW investors already use digital technology for financial services, 67% are weekly users of social media, and 41% con-sider themselves early adopters of technology.

Owen Jelf, global managing director of Accenture's Capital Markets practice, said: "Our findings did not align with

conventional wisdom, which paints high-net-worth investors as merely casual users of digi-tal services, generally reluctant to invest digitally and reliant on advisors for wealth manage-ment."On the contrary, their respons-

es were similar to those that we got from younger investors, although high-net-worth inves-tors tend to prefer going online using their PC rather than mobile devices."

According to the research report, HNW investors still expect and prefer face-to-face contact for discussing long-term planning and their future financial needs, while they are very comfortable using digital technology for basic investment tasks such as account transfers, product research and scenario analyses. <

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BRIEFSPrivate Banker International

RESEARCH

British financial services firms want government to cut compliance cost: CBI/PwC studyFinancial services firms in the UK want the newly elected government to make cutting the cost of regulatory compliance a prior-ity, according to a CBI/PwC survey.

The latest CBI/PwC Financial Services Survey for the three months to June 2015 found firms' number-one concern was reducing the cost of complying with regu-lations.

Tax stability was also ranked highly and was the number one concern for gen-eral insurers and investment managers, the report says.

The study also found that business vol-umes and optimism among financial ser-vices firms continued to grow at an above-average pace, but more slowly than in the previous quarter.

There was a pointed increase in total costs, but non-performing loans continued to fall and firms managed to keep average costs under control. These factors, com-bined with decent growth in business vol-umes, meant that profits increased at their

fastest pace since March 2011, and rose across all sectors.

Employment in financial services edged up a little. Headcount in banking was stable, with most other sectors report-ing a healthy increase and only securities traders reporting a fall. Overall numbers employed are expected to increase at a sim-ilar rate next quarter, the study report says.

In the next 12 months financial services firms plan to increase spending on market-ing as they try to reach new customers. But capital spending plans have been scaled back, with expected growth in IT invest-ment the weakest in a year and a half and firms reporting falling capital budgets in other areas.

Intensifying competition was seen as the most significant factor likely to constrain business activity in the next 12 months. Competition is increasingly seen as com-ing from outside firms' own sectors.

Dealing with statutory legislation and regulation was seen as another important

factor likely to constrain business activity in the next 12 months.

Kevin Burrowes, UK financial services leader at PwC, said: "Levels of opti-mism amongst banks remains broadly unchanged this quarter which is a little surprising as we had expected to see a bounce from the election result and the greater encouragement for financial ser-vices from the new government. However, ongoing regulatory uncertainty, the EU referendum and other macro-economic factors have dampened the outlook at least in the short term."In recent years, banks have enhanced

many of their customer-facing opera-tions with digital solutions, most notably through the introduction of mobile apps. The next wave of innovation lies in the digitalisation of the back-end processes, many of which still rely on a high degree of manual processing. Ensuring a continued spend on core IT is critical to the success of banks." <

RESEARCH

Wealth management industry managed $20.6 trillion in 2014: Scorpio Partnership studyThe global wealth-management industry managed $20.6 trillion in investable assets on behalf of high net worth investors at the end of December 2014. The top 10 global operators collectively managed 47% of the market, with UBS controlling 9.9%, according to an annual study by London-based consulting firm Scorpio Partnership.

Assets under management (AuM) for over 200 wealth mangers increased 3.4% and their operating profits improved by an average of 3.3%.

However, these figures were tempered by continued pressure on the operating effi-ciency measured by cost-income ratios. In the latest report the industry average rose 90 basis points to 84.4%, the report says.

Scorpio Partnership managing partner Sebastian Dovey said: "The operating model is facing major growing pains to accommodate the expectations of financial groups for wealth management divisions to

deliver sustained high margin results."The good news is client volumes and

demand for wealth services are strengthen-ing for many. But the bad news is the indus-try is still tackling major compression fac-tors in terms of costs versus income. Some are not moving quickly enough with rates of growth slowing," Dovey added.

According to the report, for the first time AuM figures of UBS and Morgan Stanley broke through the $2 trillion barrier.

UBS, which managed $2.04 trillion at the end of 2014, was ranked first for the third straight year, while Morgan Stanley ranked second with $2.03 trillion.

The most notable step change was post-ed for BMO Financial Group which rose 10 places to 11th, as acquisitions helped assets surge 80% to $326.4bn.

The annual Scorpio Partnership Private Banking Benchmark, which now in its 14th year, forecasts that based on growth

projections it is likely that Bank of Ameri-ca Merrill Lynch will pass the $2trn hurdle in the coming 12 months.

A n u m b e r o f f i r m s - m o s t l y headquartered in Europe - have been adversely affected by the currency perfor-mance of the Euro, the report said.

BNP Paribas and HSBC, which reg-istered 6.2% and 4.5% decline in AuM respectively, were ranked eighth and ninth globally."Looking ahead, in the intensively com-

petitive market it will be the details that make the margin of difference. The win-ners will be those that pay the most detailed attention to the optimised commercialisa-tion of the client journey and benchmark-ing this among peers. Aside from the annu-al benchmarking, our unique collation of HNW and UHNW client satisfaction rat-ings of firms identifies who is leading in this context," Dovey said <

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SUB-SAHARAN AFRICA Private Banker International

Africa’s young and growing popula-tion has strong potential for steady wealth creation in the long term. The strong push towards entrepre-

neurialism has increased the high net worth individual (HNWI) population in recent years and there is scope for management of this new wealth.

According to Knight Frank’s Wealth Report 2015, African ultra high net worth individuals (UHNWIs) held $0.2tr of wealth in 2014.

The report also forecasts that Africa’s ultra wealthy population will increase by 59% over the next 10 years.

Mass urbanisation is also promoting growth. Knight Frank’s Africa 2015 report suggests that Sub-Saharan cities are amongst the fastest growing in the world, and it esti-mates that the population of Lagos may reach 40m by 2050.

Charles Hoffman, managing director at HSBC Private Bank (UK), suggested at the PBI Conference: London 2015 in June, that Africa should be a key focus for the industry – citing a UN forecast where Africa’s popula-tion is set to account for 40% of the world’s population by 2100.

Although the population growth across Africa is certainly significant, the growth level of wealthy individuals may not be as immediately attractive to the pri- vate banking and wealth management indus-try.

Chirag Thakral, lead strategic analyst at Capgemini, tells PBI that although Africa’s wealthy population experienced “robust” growth in 2014, it was still less than the global average.

According to Capgemini, the high net worth individual (HNWI) population in Africa grew by 5.2% in 2014, compared to 6.7% globally.

Thakral, however, suggests that Africa accounts for approximately 1% of the overall wealth management market, and believes that Asia Pacific is more of a signifi-cant region for the private banking industry to concentrate on.

Although there has been relative political stability amongst Sub– Saharan countries in

recent years, there is still the risk that politi-cal upheaval in one of the major growth economies such as Nigeria, Kenya, South Africa or Angola could reverse some of the progress being made in terms of wealth crea-tion.

Increasingly competitive landscapeThe private banking and wealth manage-ment industry in Sub-Saharan Africa is experiencing heavy competition between the domestic African banks, such as Stand-ard, FNB and Ecobank, as well as the larger international players.

Ecobank’s proposition is domestically focused. Korede Demola-Adeniyi, head of premier banking at Ecobank, tells PBI that the bank understands the spe-cific needs of African HNWIs, which is its strength.“We understand our people, so we can

offer them a niche than no one else can offer. When you deal with somebody and you understand their culture, you know exactly how to handle them. "There are little things that would matter

to them that a foreign bank would not think about,” she says.

Ecobank has been in the private bank-ing space for approximately one year. The service is called “premier banking” and the majority of the bank’s client base has been derived from the wealthier portion of retail banking customers.

The bank has partnered with larger play-ers such as Nedbank to “offer what you would get from the foreign international banks and then put some local spice into it”, Demola-Adeniyi tells PBI.

Although the pan-African bank currently services 36 countries through its retail bank, its private banking proposition is only avail-able in Nigeria, Ghana and Cote d’ivoir.

Demola-Adeniyi says that although Eco-bank plans to eventually offer its premier banking service in ten more African coun-tries, the full extent of provisions, such as dedicated lounges for customers, will not be on offer due to a lack of a significant wealthy population in certain regions.

One of the most significant players in the

African private banking space is South Afri-ca headquartered, Investec.

Although Investec could be considered a domestic bank, Ryan Tholet, head of private bank South Africa at Investec, says the bank leverages on its global reach and counts the international players as competition. He tells PBI:

“We don’t think of ourselves so much as just a South African bank anymore. The things that we focus on are now far more international because I firmly believe our emerging competitors are increasingly the likes of Credit Suisse, HSBC, and UBS“At the other end of the spectrum you’ve

still got local competitors such as RNB and Standard where clients who typically choose to bank here (we believe) may not be driven so much around being treated as a global citizen.”

Theolet also explains why the bank is only present in South Africa and Mauritius, across the continent. “Given the relatively higher principal risks

in South Africa of trying to create wealth as opposed to managing it and preserving it - that model going in to Africa where your risks for creating wealth can be even higher, can't be effectively done, we believe, unless you have a physical presence on the ground, you're dealing directly and constantly with the clients, and you know them back to front.”

Investec’s qualifying criteria for pri-vate banking clients is minimum earnings of RND750,000 ($59,200) per annum. Barclays’ South African subsidiary, Absa, has the same requirement for its wealthy clients. Theolet adds that the qualifying cri-teria covers approximately 3% of the South African population.

Increasingly, foreign private banks are entering into the Sub-Saharan market. Switzerland-headquartered UBS offers pri-vate banking and wealth management in a few select areas in the region including South Africa, Nigeria, Kenya, Tanzania and Uganda. The global private banking giant also has plans to service Angola, where the HNW population is growing due to mineral

Into the great unknownSub-Saharan Africa is a region that is beginning to receive more attention from the private banking and wealth management industry. International and domestic private banks are revealing different approaches towards providing the best service as well as building lasting relationships with the emerging HNW segment in the region. John Schaffer speaks to leading players to find out more

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SUB-SAHARAN AFRICAPrivate Banker International

and oil wealth.Martin Emodi, head of Africa at UBS

Wealth Management, says that the bank has been selective, as it would be “foolish” for a foreign bank to cover all countries in Sub-Saharan Africa.

Prospective clients can open an account with investable assets of $0.5m, a figure that Emodi says often “surprises” clients.

Emodi tells PBI that UBS differentiates itself from domestic players by exposing cli-ents to a more global platform.“Our expertise primarily lies in global

investing, while local banks are excellent partners for local investing.”

UBS partners with African banks such as Investec to offer select products to its clients.

“We have to be there now to start building the client base and to show commitment to local entrepreneurs. You can't just come in when the show is happening, you have to be there very early on,” adds Emodi.

Growing middle classAlthough many of Absa’s clients are the ultra wealthy, self-made entrepreneurs, a signifi-cant portion of its client segment comes from professionals such as lawyers, doctors and accountants - indicating a growth in the South African middle class.

This is mirrored by Investec’s proposi-tion. The bank offers an entry level private banking service to young professionals who would not normally have the wealth required for a private banking account, but are accepted due to their potential future loyalty to the bank.

Tindleni says that one growing client segment for Absa is the “black middle class” that is developing in the post-Apartheid era.“There's been huge growth in the black

middle class in South Africa and that was historically not the case. With those indi-viduals being part of the middle class, a lot of them are migrating over time into the top end, and starting to earn significant amounts of money.”

The growth of the African middle class will also provide a potential opportunity for entrepreneurs to capitalise on consumer led industries. Emodi, UBS, says:“People who can benefit from the growth

of the Nigerian lower middle class – any-thing from consumer staples, housing, ener-gy, to transport – will be the next wealthy Nigerians.”

Investment trendsBongiwe Tindleni, head of private banking at Absa, tells PBI that wealthy individuals in South Africa with a large amount of dispos-able income are looking to invest outside of

the regional market.“Increasingly in the high end, we are seeing

clients starting to talk to us about offshore investment.”

However, she adds that a significant amount of the bank’s clients are still invest-ing domestically in areas such as property, especially if they are at the younger end of the client segment.

Ecobank’s Demola-Adeniyi, tells PBI that amongst Ecobank’s clients, investment appetite is modest due to high interest rates on deposits in many of the Sub-Saharan regions. She says that her clients are more inclined towards cash and equities within their own countries as returns are higher compared to international rates. Nigerian interest rates, for instance, stood at 13% during 2015.

However, one issue for the African wealthy could be over-exposure to home currencies and investments, where emerging market economies are traditionally more volatile than those in the developed world.

Tholet, Investec, says that this is one of the most significant concerns of his South African based clients. He says:

“The majority of South African entrepre-neurs’ balance sheets are very much rand based and we are seeing a lot of clients look-ing to diversify those balance sheets from a currency risk perspective.”

Emodi, UBS, also suggests that a lack of exposure to global investments is hampering the potential growth of African HNWIs. He tells PBI:“On average I would say Africans are not

investing using a global investing capability to the degree they should in terms of opti-mising their portfolios.“Particularly I'd say outside of South Afri-

ca, there's still a strong bias to the country where they're from. With the Nigerian cli-ents we're dealing with, typically the one challenge we have to address is that they have a strong home bias and carry a lot of local risk.”

Emodi suggests that this investment trend is due to a significant amount of wealthy

Africans having local investment in busi-nesses. He adds that the wealthy favour pri-vate equity holdings instead of putting away money with banks.

Key wealth areasIn 2015, Nigeria’s GDP ($594.3bn) over-took South Africa’s ($341.2bn) presenting a growing hub of wealthy individuals for the private banking sector.

Although there is significant growth in Nigeria, Emodi, UBS, feels that the two economic giants in Africa are very different from each other. He suggests that South Africa, with its more developed banking space, is “more like a European market”.

Emodi tells PBI that the population size and economic growth make it the country that UBS are most strategically interested in.

The primary source of African wealth is derived form oil and gas. However, plung-ing oil prices and strengthening of the dollar towards the end of 2014 will have affected natural resource exporters such as Nigeria and Angola.

Economic growth in the Sub-Saharan region is being fuelled by foreign investment. Peter Welborn, partner at Knight Frank, tells PBI that “capital flows are coming out of the Gulf and China, investing in real estate projects in a wide range of coun-tries.”

Welborn adds that Ethiopia is of particular interest to Middle Eastern investors, with an influx of equity due to similarity in religious understandings.

On the whole, the private banking market in Sub-Saharan Africa is relatively modest in comparison to other more developed regions across the globe. However, UBS’ Emodi says the correct approach towards the African market is to focus on the long term goal.“We look at this as a phase of investing and

building up. It is clear that Africa will be a very important market at some stage in the future, but it will take time, and we have to be there early,” he says. <

n UHNW POPULATIONS

2004 2013 2014 2024 (forecast)

South Africa 300 594 616 903

Nigeria 63 200 210 399

Kenya 56 110 115 209

Tanzania 40 75 78 156

Angola 12 70 72 112

Ghana 7 30 31 62

Ivory Coast 16 25 26 57

Source: WealthInsight

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HAMPDEN & CO. Private Banker International

New entrants into the UK private banking industry are certainly not commonplace. In fact, Hampden & Co. is the first new entrant into the

UK private banking space in over 30 years.The Edinburgh-headquartered bank is

backed by 250 shareholders with nearly £50m in capital raised for its launch. The bank has been founded by Ray Entwisle, for-mer chairman of wealth management firm Adam & Company.

The private bank is entering the market at a rather challenging time for the indus-try. Private banks' profit margins are being continuously squeezed by an ever-more strict regulatory environment and the threat of digital disruption are many - particularly coming from automated-advisory-services such as Nutmeg. As a result, some private banks have streamlined their client focus, revaluated their business models, and some have also tried to combat the issues in the industry via mergers and acquisitions.

However, Graeme Hartop, chief executive of Hampden & Co., believes that, despite adversities facing the industry, there is space and opportunity for a new player in the UK private banking market. He says:"The high net worth (HNW) segment in

the UK has performed very well, even over the credit crunch period. The numbers are growing and the amount of people using private banks is still relatively small in the scheme of the overall UK population."

A traditional challengerThe original name for Hampden & Co. was Scoban. The firm's name was changed after insurance advisory group, Hampden Holdings, became one of the bank's largest shareholders. Hartop was headhunted by Entwisle to take on his current CEO posi-tion. Previously a professional rugby player, Hartop has had a 26-year career in banking, beginning at Adam & Co. and moving to Scottish Widows where he spent 19 years and served as managing director since 2003.

The Hampden & Co. business model is purely traditional in its approach to private banking. With two offices - in Edinburgh and London - the private bank aims at fos-

tering personal relationships with its clients.The bank offers a selection of prod-

ucts aimed at wealthy individuals. Hartop informs:"The products set includes a current account, full lending capabilities including regulated mortgages, overdrafts, loans and full depositing capabilities."

In terms of client growth, Hartop says the aim is to grow "gradually" and forecasts 1,000 clients by the end of the first year of its operations. He adds the private bank is

"all about the client and providing the right service to that client". This client centricity is supported by a team of high quality, pro-fessionally accredited private bankers. The experienced staff will bring an associated cli-ent base to the new private bank to form a portion of its initial clientele, which will also include the bank's 250 shareholders.

The bank's shareholders are intrinsic to its marketing strategy, which is based upon word of mouth, rather than an external advertising push. Hartop says: "Essentially a lot of the strategy revolves around the exist-ing shareholder base and the contacts that we have in the banking team. We've also got a number of connections in the professional market in terms of businesses such as law-yers and accountants."

According to Hartop, Hampden & Co. has numerous advantages over incumbent private banks in the UK. "We're coming into the market with a completely blank sheet of paper in that we're a new start-up. We've got none of the legacy issues of the past. That will be an attraction for clients."

Wealth in the cloudHampden & Co. have partnered with Oracle for its technology infrastructure and is using Flexcube, Oracle's cloud based core banking platform. Hartop says that launching with a cloud based system gives the private bank "a lot of future proofing" for its IT systems. "I think we've all seen a number of incidents in the UK where some of the more established banks have had big IT issues, so having the modern technology is a really significant benefit for us," adds Hartop. Additional benefits of the cloud, for a new private bank, include flexibility and scalability.

Currently, the main challengers to the pri-vate banking model - more often than not

- come in the form of digital start-ups where costs can be cut drastically in comparison to traditional private banks. However, Hartop says that Hampden & Co. is not in direct competition with the automated-advisory market, where the concentration is purely on investments. The new bank is looking to cater to the wider issues around wealth."We're upfront that if cost is the key

driver, then probably our service is not for you. What we're looking to do is to provide that holistic private banking service from a trusted advisor who is professionally quali-fied, and present a good service around that. We're competing in a different market place."

Although Hampden is not entering the market as a digital disrupter, the bank is cer-tainly not digitally agnostic. However, Har-top says that digital channels such as online and mobile banking platforms are currently not available, upon the bank's launch.

"We're going to gradually roll out our digital channels. We will launch our internet bank-ing in the near future but we'll do so on a progressive basis, starting with look-up-only facilities, and then we'll move onto fuller transactional and digital capabilities."

The mobilised bankHampden & Co. has been a trailblazer in its approach to receiving a banking licence in the UK, being one of the first institutions to be approved by the FCA's Mobilisation process. This allows the bank to receive a licence without its complete infrastructure being in place. Instead, a financial institution can apply for a license with a business plan and its senior members appointed.

Often challenger banks are restricted by costs involved in an authorisation process and this process has allowed Hampden to enter the market without a huge initial investment in personnel and infrastructure, with the investment being developed after license approval. Hampden & Co.'s core strategy, Hartop reiterates, is all about "get-ting back to traditional private banking with long term continuity of personnel and speedy decision making". <

An analogue bank in a digital worldIn an industry that is inundated by digital disruption alongside the tradition of sticky client relationships, private banks can often suffer from an existential crisis. Hampden & Co., a new entrant into the UK market, has adopted a traditional model based upon client relationships. John Schaffer speaks with Graeme Hartop, the bank's chief executive, to find out more

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METRO BANKPrivate Banker International

At its launch in 2010, executives at Metro Bank had not intended on promptly offering any private banking services. However, in 2011,

it was purely due to the wealthy customers’ demand that the UK-headquartered lender forayed into private banking.

Currently, the private banking division accounts for approximately 20% of the bank. Metro Bank does not provide invest-ment advice or sell investments, but focuses, instead, on providing simple and transparent banking solutions for wealthy customers.

Paul Riseborough, managing director - customer propositions and private banking at Metro Bank, explains that there is a real demand for straightforward private banking. “We found that a lot of our wealthier

customers – not mass affluent but high net worths (HNWs) and ultra-high net worths (UHNWs) – were in need of a really good private bank. Some clients were in fear of being moved to the retail operations of cer-tain banks, or the charges were too high. Also, wealthy clients were particularly tired of being sold to – in wealth management, investment management, and insurance.”

Metro Bank aims to provide “excellent banking, lending, and exceptional relation-ship management”, says Riseborough. The private banking division has grown robustly and rapidly. Between June 2012 and Decem-ber 2014, the division experienced a deposit growth of over 600% and an increase in lending by over 2669%.

Growth of the unit, however, does not seem to be Metro Bank’s problem. “For us it’s about quality of the service. We set lim-its on how many clients our private banking directors can really manage,” he says. “Some banks have thousands of clients, but

how can you provide great service to eve-ryone on that basis? We want sustainable growth, and that means we are not out to market ourselves. In time, though, we have to take the differentiating factors of our brand to more people,” Riseborough adds.

A key differentiating factor is the way the bank has created specialist teams to cater to certain categories of wealthy clients. “We have teams for sports & entertainment,

entrepreneurs, boards & partners, and com-mercial private clients. “Their core skills are defined. You get a

dedicated private banking director and truly personalised services,” says Riseborough.

Metro Bank also takes a flexible approach towards lending and that’s where it “comes into its own”. Riseborough explains: “It seems like a small point but the wealthy have complex financial lives, and to be able to talk to relationship managers (RMs) who have a rounded view of the clients and their assets, and can discuss commercial as well as private banking needs, is a rare thing. “A footballer, for instance, might have a

lumpy income profile. We are good at man-ually underwriting and taking more of a pragmatic view to different types of lending, which has been successful for us.”

Earlier in 2015, Metro Bank also partnered with British wealth manager, St James’s Place, to offer a Money Manage-ment account. The new, co-branded account is available to customers with more than £500,000 invested with St James’s Place.

The customer demographic at Metro Bank’s private banking unit is diverse. “We attract entrepreneurs, people who have gained wealth recently, but we also have cli-ents with multigenerational, ‘old money’. It’s a broad spectrum.“The entrepreneurs and Next Gen clients

want to talk to people who share their sense of ambition. Some private banks think, ‘how can I get this person to a balanced invest-ment portfolio’. We keep things simple. If you need a mortgage, come to us,” says Riseborough. Metro Bank doesn’t have a differentiated UHNW offering, but it has UHNW clients.

HNWI and UHNWIs alike are hungry for high quality information and the RMs “real-ly need to know their clients’ situations and needs”, stresses Riseborough. Wealthy cli-ents are also demanding in the way that they interact with their banks, and uncompromis-ing on their need for good digital channels.

Metro Bank has a three to five-year invest-ment plan to enhance its mobile and online banking platforms. Using Switzerland-headquartered software vendor Temenos’

systems across the board, Metro Bank has the advantage and flexibility of state-of-the-art technology platforms, based on cloud computing. “We have a great CRM system, and a sin-

gle customer-view of all the client’s holdings. Other banks have old legacy systems to deal with but we don’t, and digital is key for us. We can develop a new product in three days, basically, while other banks can take up to a year. It’s a completely different playing field,” Riseborough says. The advantage of invest-ing in sophisticated technology systems fur-ther allows for a smooth client on-boarding process. “In some cases, you can walk out with an account and a private banking debit card within 15 minutes,” he says.

As Metro Bank private banking does not advertise, approximately 80% of the divi-sion’s clients come from referrals whereas 10%-20% come up through the stores. “We focus on the experience – it’s the core of our business. The RM is at the heart of it”, says Riseborough. There is a strong focus on training bankers holistically – “hired for attitude, and trained for skill”, he adds.

According to Riseborough, the automat-ed-advisory service players are “refreshing” as they help keep the advice side honest.

“The robo-advisory business model is easy to understand, and some HNWIs like that. It’s about choice.”

Plans ahead include adding more special-ist teams within a couple of years. “There is a case for building a team that looks at hedge funds and private equity. We are also deepening our sports team’s relationships and increasing that product set, as each sport brings in different dynamics. “It’s also a lot about technology in the next few years,” informs Riseborough.

Metro Bank plans to develop a HNWI card proposition in the next 12-24 months, as well as allow more flexibility to its depos-its range to give clients options. “We are not about having a large product set with bells and whistles on it. Features such as a flex-ible underwriting process really matters to wealthy people. We want to provide solid, quick, good banking experiences. That’s what the clients want,” he sums up. <

Direct approach and robust growthBeing a relatively new bank on the UK high street, and having launched its private banking unit only four years ago, Metro Bank is operating in a crowded wealth management market. However, Paul Riseborough, MD - customer propositions and private banking at Metro Bank, tells Meghna Mukerjee there’s always space and demand for straightforward and transparent private banking services

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S#CXFSASIA AWARDS Private Banker International

United Overseas Bank Malaysia (UOB) has collected the award for the Best Customer Experience Busi-ness Model at Timetric’s Customer

Experience in Financial Services Asia (#CXF-SAsia) Awards 2015 while DBS enjoyed a phenomenal evening collecting five awards.

UOB’s “Raising CX Through People” ini-tiative introduced its people-centric business model, a competitive differentiator for the bank.

Ruben Kempeneer, regional director of Timetric, said that the judges recognised that

“UOB’s CX was incorporated in the bank's Mission Statement, Business and Corporate Strategy, and Service Charter, and created a Service Excellence Council kick-started with a customer centricity self-assessment with the council members, and a customer survey to create customer benchmarks to customer loyalty and elasticity of pricing strategy.“The bank also effected an employee strat-

egy to increase motivation and drive a ser-vice culture throughout the organisation, along with customer-focused initiatives for service quality and customer loyalty and retention.”

DBS enjoyed a high profile win in the category for CXFSAsia Leadership Award (Institution). Kempeneer said that the judges noted DBS’ drive to put the customer at the heart of all of its initiatives, from its R.E.D. principles for ensuring ultimate customer experience – being Respectful, Easy to deal with, and Dependable, to its Human-Cen-tered Design methodology guiding all of its systems and process enhancements.

Maybank was a deserved winner of the category for Best Use of Social Media. May-bank maintains its social media presence across five social media channels: Facebook, Twitter, YouTube, Google+, and LinkedIn.

Other highlights included PT Bank ANZ Indonesia receiving the award for Best Cus-tomer Experience (Banking).

Andrew Tinney, CEO Management Con-sulting for KPMG in ASEAN, who also heads up the Financial Services Advisory Practice for KPMG in Singapore, said: “Cre-ating the ultimate customer experience can be an important differentiator in a crowded

marketplace and it is thus fitting that Timet-ric has created a platform to recognise finan-cial institutions that have successfully incor-porated this into their business strategy.”

The #CXFSAsia Awards 2015, that took place on 25 June in Singapore, identify

industry leaders that are setting new stand-ards in customer experience and engagement for the financial services sector. They are the only one of its kind focusing on initiatives in customer experience within Asia’s competi-tive financial services sector. <

Timetric announces the winners for #CXFSAsia Awards 2015Timetric has announced the winners for its Customer Experience in Financial Services Asia (#CXFSAsia) Awards 2015. They are the premier regional awards that commend outstanding financial institutions for their innovative and superior customer experience and service standards, reports Douglas Blakey

Customer Experience In Financial Services Asia Awards 2015 Winners

#CXFSAsia STRATEGY AWARDS

Best Customer Experience Business ModelWINNER: UNITED OVERSEAS BANK MALAYSIAHighly Commended: DBS BANKHighly Commended: MAYBANK

Best Service InnovationWINNER: DBS BANKHighly Commended: MAYBANK

Best Brand EngagementWINNER: KRUNGSRIAYUDHYA CARD COMPANY LIM-ITEDHighly Commended: E.SUN BANK

#CXFSAsia CHANNEL AWARDS

Best Customer Experience (Branch)WINNER: BANK SIMPANAN NASIONALHighly Commended: CitibankHighly Commended: E.SUN Bank

Best Customer Experience (Mobile)WINNER: DBS BANKHighly Commended: Bank Danamon IndonesiaHighly Commended: CB Bank

Best Customer Experience (Website)WINNER: CITIBANKHighly Commended: CB BankHighly Commended: Maybank

Best Customer Experience(Contact Centre)WINNER: OCBC BANK – COLLECTIONSHighly Commended: PT Bank ANZ Indonesia

Best Use of Social MediaWINNER: MAYBANKHighly Commended: Siam Commercial Bank

Best Omni-Channel Customer ExperienceWINNER: WESTPACHighly Commended: DBS Bank

Best Customer Experience (Banking)WINNER: PT BANK ANZ INDONESIA

Highly Commended: Security Banking Corporation

Best Customer Experience (Insurance)WINNER: SUN LIFE OF CANADA (PHILIPPINES) INC

Best Customer Experience(Wealth Management)WINNER: TAISHIN BANKHighly Commended: DBS Bank

Best Customer Experience (Cards)WINNER: DBS BANKHighly Commended: Krungsriayudhya Card Com-pany Limited#CXFSAsia TECHNOLOGY AWARDS

Best Technology Implementation(Front End)WINNER: BANGKOK BANKHighly Commended: DBS Bank

Best Technology Implementation(Back Office)WINNER: TAISHIN BANKHighly Commended: Alliance Bank Malaysia BerhadHighly Commended: Bank Simpanan Nasional

Best Use of PersonalizationWINNER: TAISHIN BANKHighly Commended: Krungsriayudhya Card Com-pany Limited

#CXFSAsia LEADERSHIP AWARDS

#CXFSAsia Leadership Award (Individual)WINNER: DAVID LYNCH, HEAD OF TECHNOLOGY & OPERATIONS – HONG KONG AND MAINLAND CHINA, DBS BANKHighly Commended: Alain Boey, Head of Transfor-mation Management Department, Bank Simpanan Nasional

#CXFSAsia Leadership Award (Institution)WINNER: DBS BANKHighly Commended: Maybank

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WEALTHINSIGHTPrivate Banker International

Welcome to the monthly instalment of news and views from PBI’s sister company, WealthInsight – the leading provider of business intelligence for the wealth sector

Small-time oligarchs shun EuropeIt could be claimed that, were it not for Russia’s oligarchs, central London would

not be the place it is today. From the basements undermining Knightsbridge to

the courtrooms of the City, where Oligarchs file suits against one-another with

increasing frequency, Russia’s wealthy rule the roost.

Or so has been the case. However, new research from WealthInsight reveals that

the wealth of Russia’s HNWIs (those with $1m plus) will increasingly find a home

in Asia.

A total of $382 billion in Russian private wealth is currently held outside Russia,

8% more than the worldwide average. Of that, most is held in Europe, but between

now and 2019, WealthInsight predicts that Europe will see its share of Russia’s

overseas wealth drop from 50.5% to 40.3%. Asia, on the other-hand, will increase

from 22% to 26% in 2019.

Why, at a time when Russia’s wealthy are leaving in their droves would they shun

Europe? Some may be bitter about the EU imposed sanctions affecting the Russian

economy, though they are probably in the minority. The real cause is likely to be

down to Russian HNWI’s main concern – their wealth.

The UK, and more precisely London, is the largest home of Russian HNWIs out-

side Russia. So when the UK doubled the cost of its Tier 1 investment visa – the type

most sought after by Chinese and Russian applicants – to £2m and ruled out the

ability to tie into the cost investments in residential property, as was previously

the case, the cost of moving to the UK suddenly shot up.

Of course, a potential £3.4m resettlement fee (£2m for the visa plus another

£1.6m for the average 2 bedroom properties in central London) would be small

change to a true oligarch, but most of them already have a passport and a home in

the UK, if they aren’t living here outright. It is therefore not the billionaires that

are shunning Europe for the Asia, but the mere millionaires. The UK is simply pric-

ing Russia’s millionaires out of the country and it is Asia that is picking up the slack.

Aside from geo-politics and litigation, there is one other factor that we at

WealthInsight look at when predicting the movement of wealth – economic

opportunity. Just as today’s aging oligarchs sought economic prosperity in Europe

during the 1990s, today’s Russian millionaires are shunning Europe for the same

reason. While Europe mires in economic stagnation there are fortunes to be made

in rising Asia, not least in economies more friendly to the Russian state.

Russia's lesser wealthy HNWIs - normally younger than the aging oligarchs

parked in European capitals - are finding it easier, cheaper and, at the same time,

more profitable to invest in cities such Dubai, Hong Kong and Singapore. Further

afield, China's 'silk road' policy is opening doors to the East while Israel maintains

a large Russian-speaking population to the West.

While these movements of Russian wealth to Asia are as yet very minor, they

are certainly something to watch. Wealth in today’s world is much freer and global

than ever before, therefore predicting its ebb and flow has become ever more trou-

blesome. Russia’s small time oligarchs may be parking a portion of their wealth in

Asia now, but as the tide of geo-politics and economic opportunities is played out

in the next decade, the flow of wealth and wealthy individuals from Moscow to

Dubai, Hong Kong and elsewhere could be much more significant.

The real worry for London, though, is not the rise of Asia, but if the Russians

start to shun our shores who will replace them in London’s court rooms and cafes?

As wealth becomes more mobile, predicting the next movement of millionaires is

the ultimate million-dollar question.

Oliver Williams: Head, WealthInsightowilliams@wealthinsight.com

n RUSSIAN HNWIS – GLOBAL DISTRIBUTION OF FOREIGN INVESTMENTS (%), 2010–2019

20102014

2019 0

20

40

60

80

100

EuropeAsia PacificNorth America

unit

Middle EastLatin AmericaAfrica

Source: WealthInsight

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SRESULTS Private Banker International

UBSUBS wealth arm Q2 pre-tax profit surges 113%

The wealth management arm of UBS has registered profit before tax of CHF756m in the second quarter of 2015, up 113% com-pared to CHF355m a year ago.

For the quarter ended 30 June 2015, the unit's adjusted profit before tax was CHF769m.

The bank said the unit's adjusted net new money was robust at CHF8.4bn, driven by inflows from all regions and segments, most notably its Asia Pacific franchise, as well as from ultra-high-net-worth clients.

The unit's total operat-ing income increased 8% to CHF2.08bn from CHF1.92bn in the corresponding quarter of 2014. Total operating expenses were CHF1.34bn compared with CHF1.56bn a year earlier.

Net new money for the wealth-management business was CHF1.8bn in the quarter.

Wealth Management Ameri-cas delivered an adjusted profit before tax of US$231m. Net new money was slightly nega-tive at $0.7bn, reflecting sea-sonal outflows of approximately $3.9bn associated with income tax payments.

CITIGROUPCitigroup profit soars in Q2; Private Bank revenues up 13%

American banking giant Citi-group's second-quarter net income jumped to $4.84bn, or $1.51 per share, from $181m, or $0.03 per share a year ago, when the bank had $3.7bn in costs from settling a mortgage-bond probe.

Total revenues for the quarter were $19.47bn compared to $19.42bn in the second-quarter of 2014.

The group's Private Bank revenues increased 13% from the prior year period to $746m, driven by increased loan and deposit balances and growth in investments and capital markets products.

The group's operating expens-es were $10.9bn in the second quarter 2015, down 30% versus the prior year period.

Commenting on the perfor-mance, Citigroup CEO Michael Corbat said: "Our results for the quarter show very balanced performance across our business lines."As we increased our capital

return, we still continued to grow our regulatory capital, raising our Common Equity Tier 1 Capital ratio to 11.4%. Through active expense and balance sheet discipline, we are on track to reach our financial targets for the year."

JULIUS BAERJulius Baer H1 profit drops following US charge; to buy stake in Mexican advisory firmSwiss wealth manager Julius Baer has posted a net profit of CHF39.7m for the first half of 2015, a dip of 78% compared to CHF178.9m a year ago.

Net profit was impacted by the provision of CHF326m ($350m) to settle a tax dispute with the US. Excluding the pro-vision, profit increased by 34% to CHF384m.

Julius Baer CEO Boris Col-lardi said: "The financial results were impacted by the recently announced US provision, and Julius Baer will continue to work toward closing this regrettable legacy issue as soon as possible."

The group's operating income rose by 14% to CHF1.41bn from CHF1.24bn in the first half of 2014.

Assets under management (AuM) ended the first six months at CHF284bn, down CHF7bn, or 2% since the end of 2014."This included CHF56bn of

AuM attributable to clients and relationship managers of the former Merrill Lynch Inter-national Wealth Management (IWM) business outside the US," the company said in a statement.

Also, Julius Baer announced that it has agreed to acquire 40% of NSC Asesores, an inde-

pendent financial advisory firm in Mexico, for an undisclosed amount.

NSC, which is based in Mexi-co City, manages assets of close to $3bn and has enjoyed strong growth in the past years.

STATE STREETState Street records 34% fall in Q2 net income as legal costs riseState Street has posted a net income available to common shareholders of $393m for the second quarter of 2015, down 34% compared to $602m in the corresponding quarter of 2014.

Revenue for the second quar-ter ended 30 June 2015 slightly rose to $2.61bn from $2.60bn in the second quarter of 2014.

Net interest revenue stood at $535m, a decline of 4.6% from $561m in the second quarter of 2014. Expenses soared 15% to $2.13bn as against $1.85bn a year ago.

The firm's return on average common shareholders' equity (ROE) decreased to 8.3% from 11.9% a year earlier. State Street's assets under manage-ment declined 4.3% to $2.37trn from $2.48trn the same period last year. Assets under custody and administration increased 0.9% to $28.65trn.

The company has increased the money set aside for legal costs associated with indirect foreign exchange business to $585m from $335m as of 30 June 2015. State Street chair-man and CEO Joseph Hooley said: "Net interest revenue in the second-quarter of 2015 con-tinued to experience pressure as a result of the ongoing low inter-est rate environment."

ARBUTHNOT LATHAMArbuthnot Latham H1 pre-tax profit rises to £3.7m

Arbuthnot Latham H1 pre-tax profit rises to £3.7m. The pri-vate banking unit of Arbuth-not Banking Group has posted pre-tax profit of £3.7m for the

first half of 2015, a surge of 111% compared to £1.7m a year ago.

The bank attributed the rise in pre-tax profit to hiring of addi-tional private bankers over the past two years, which led to a substantial increase in new cli-ents opening accounts.

The unit's assets under man-agement on 30 June 2015 stood at £701m, a rise of 23.8% from £566m a year ago. Customer deposits soared 30.7% to £770m from £589m in the pre-vious year.

Overall, Arbuthnot Banking Group reported a pre-tax profit of £15.7m, an increase of 65% compared to £9.5m in the same period last year.

The group's overall operating income was £79m, an increase of 38% compared with £57m in 2013.

CREDIT SUISSECredit Suisse's private banking, wealth arm swings to profit in Q2

Credit Suisse's private bank and wealth management unit has posted a pre-tax income of CHF937m for the second quarter of 2015, compared to a loss of CHF749m a year ago. Net revenues were CHF3.15bn, an increase of 3% from CHF3.05bn in the second quar-ter of 2014.

The unit's total operat-ing expenses at the end of the second quarter stood at CHF2.17bn, down 42% com-pared to CHF3.77bn in the corresponding quarter of 2014. The private bank and wealth management units' provision for credit losses were CHF44m, a 91% surge versus CHF23m a year earlier.

Overa l l , Cred i t Su i s se Group reported a net profit of CHF1.05bn for the second quarter, bouncing back from a CHF700m loss in the year ago quarter. Net revenue rose 8% to CHF6.94bn from CHF6.43bn a year ago. "Asia Pacific con-tinues to be a significant driver of our performance," the bank said. <

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July 2015 y 11

JAPANPrivate Banker International

Japan is certainly one of the largest hubs for wealth globally. According to Julius Baer’s Wealth Report: Japan 2014, the country is home to half of

all high net worth individuals (HNWIs) across Asia.

According to WealthInsight's Japan Wealth Report 2015, there were over 2m HNWIs in Japan in 2014, holding $2.9trn in total wealth. The total growth rate of HNWIs increased to 1.4%, up from a 0.8% growth in 2013. The high concentration of wealthy in Japan is no surprise as the coun-try is the world’s third largest economy.

Japan’s GDP was worth $4.6trn in 2014, representing 7.42% of the world economy. This follows record highs in the country’s GDP in 2012 of $5.9trn.

Although growth figures for 2014 had been particularly gloomy, the Japanese economy grew at an annualised rate of 3.9% dur-ing the first quarter of 2015, significantly beating market expectations of 2.8%. The growth can be attributed to an increase in inventory investment, accounting for 2.2% of annualised growth. Even when invento-ries are taken out of the equation, the Japa-nese economy is growing above the Bank of Japan’s estimate of 0.5% per year – suggest-ing a recovery after Prime Minister Shinzo Abe’s imposed sales tax rise, which caused a recession in the middle of 2014.

However, a significant threat in the long term, to the Japanese economy, could be the country’s ever ageing population. One in four Japanese are over 65-years, rising by 1.1m in 2014 to 33m and outnumbering those aged 14 or under by two to one. The total popu-lation has also shrunk for the fourth con-secutive year – resulting in a population that equals figures from 2000. The birth rate in Japan is particularly low, with 1.4 children for every woman.

The issue arises over how the ever-dwin-dling number of workers will be able to provide for the mass elderly population. The population situation could have a severe effect on Japan’s GDP and economic growth.

Tokyo has one of the most significant glob-al populations of ultra high net worth individ-uals (UHNWIs) at 3,575. The ultra wealthy

population is only second to London’s 4,364 individuals. During WealthInsight’s review period (2010 – 14), Japan’s UHNW popula-tion increased by 20.9% from 13,814 in 2010 to 16,703 in 2014.

Other significant populations of UHNWIs include Osaka, Japan’s second largest city with 1,471 wealthy individuals.

The richest individual in Japan is Tadashi Yanai, with a net worth of $25.6bn. Yanai is the founder and president of Fast Retailing, a retail holding company of which Uniqlo is a subsidiary. Other notable ultra wealthy Japanese include Masayoshi Son ($13.3bn), CEO of the mobile internet powerhouse Soft-bank. Nobutada Saji ($10.9bn), former CEO of drinks company Suntory Holdings, is also one of the country’s wealthiest individuals.

Japanese wealth comes from a variety of industries. Financial services were the pri-mary source of wealth for 19.1% of local HNWIs in 2014. Technology and telecom-munications was the second-largest source of wealth at 14.7%, followed by manufacturing with 11.3%, media with 9.8% and retail and fashion and luxury goods with 8.0% in 2014.With such a large population of HNWIs, there is significant potential for wealth man-agement and private banking in Japan.

The largest players in the domestic pri-vate banking market include Sumitomo Mitsui Trust Group, Mitsubishi UFJ Finan-cial Group, Nomura Wealth Management, Mizuho Financial Group, Resona Holdings, and Bank of Yokohama.

Although the market looks favourable for Japanese private banks, The WealthInsight

report says that “many Japanese people are suspicious for opting for private banking for their intangible services”. The services that domestic private banks offer revolve around investment planning, tax planning, and trus-tee advisory services.

International banks have a far smaller share of the market. However, institutions such as UBS, Credit Suisse, Union Ban-caire Privee, Unicredit Bank, HSBC Private Bank, Deutsche Bank, Citibank and Société Générale are prominent in the private bank-ing market. International private banks in Japan concentrate on offering products like equities, bonds and derivatives.

According to the WealthInsight database, Japanese HNWIs assigned a significant amount of their asset allocations towards Business interests at 29.8% in 2014. Total allocations to equities were 25.6% in 2014 and are forecast to rise to 31.2% in 2019. Other allocations included real-estate (19.7%), fixed income (9.8%), cash (7.9%) and alternatives (7.1%)

During the review period between 2010-14, significant growth was indicated in equi-ties (90.3%) and business interests (34.0%). However, growth is expected to decrease over the forecast period due to increasing volatility in the world economy and a growing interest in other asset classes.

Alternatives, in particular, are set to have strong growth levels in WealthInsight’s fore-cast period, with a greater allocation towards Hedge Funds, real estate investment funds, private equity, structured products and deriv-atives. <

Wealth in an ageing nationJapan stands out as the most significant area for wealth across Asia, with a significant population of billionaires and a highly developed economy. However, the country’s ageing population may pose difficulties in the future. John Schaffer delves into WealthInsight’s findings to access the growth and trends of the wealthy population in the country

n JAPANESE HNWI ASSET ALLOCATIONS 2010 - 2019

Asset Class 2010 2014 2019

Business Interests 28.40% 29.80% 29.90%

Total Equities 17.20% 25.60% 31.20%

Total Real Estate 27.20% 19.70% 15.50%

Total Fixed-Income 11.10% 9.80% 8.40%

Total Cash 9.10% 7.90% 6.90%

Total Real Estate 27.20% 19.70% 15.50%

Total Alternatives 7.00% 7.10% 8.00%

Source: WealthInsight

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12 y July 2015

Nippon Wealth impale-ments Temenos' core banking solution T24Nippon Wealth Limited, a restricted licence bank, has deployed Temenos' core bank-ing solution, T24, to better serve its affluent customer base across Japan and Asia.

The deployment is expected to enable NWB to capitalise on the growing demand for wealth management services and sup-port the bank's expansion plans in Japan and Asia.

T24 is touted as a highly-scal-able banking solution that offers end-to-end processing within a single, centralised system.

The platform enables stream-lining and optimisation of trans-actions across deposits, bonds, mutual funds, insurance and loans.

The platform will also serve as a bank-wide general ledger, and facilitate NWB's compliance and reporting with regulatory bodies and industry institutions, Temenos said.

NWB chief technology officer Ryutaro Uehara said: "Our oper-ations in Hong Kong have taken off successfully after going live with T24. With the best infra-structure in place to deliver qual-ity banking services to our clients, we are confident that our growth in the market will continue on its upward trajectory."We are pleased to partner with

an industry leader like Temenos and deliver results within a short time period. We look forward to achieving greater heights and strong growth in this strategic market with T24."

Wells Fargo to imple-ment SEI’ next-genera-tion wealth platformWells Fargo has decided to adopt SEI's next-generation, wealth management technology solu-tion, SEI Wealth Platform, to meet future needs of clients.

Wells Fargo will migrate to the new platform from SEI's TRUST 3000 solution, which currently supports its wealth management, retirement, and corporate trust groups' fiduciary and custodial businesses.

SEI Wealth Platform is an

integrated solution designed to support client relationship man-agement including front, middle, and back-office fiduciary invest-ment and account administration processing services.

Wells Fargo senior execu-tive vice president and head of wealth, brokerage and retire-ment group David Carroll said:

"We look forward to continuing our 40-year relationship with SEI and using recent technology advancements to enable Wells Fargo team members to continue serving the expectations of our clients into the future."The capabilities and features

of the Platform are a good fit for our business, helping Wells Fargo give our clients efficient and exceptional service."

Wealth Help selects eWise platform to launch personal finan-cial management toolUK-based Wealth Help has selected eWise's money manager solution in the Cloud to launch an advanced personal financial management tool.

Wealth Help will launch the money manager service as its pri-mary digital engagement chan-nel, which will enable clients to access their portfolio and gain greater insight into their finances.

The solution will also enable Wealth Help clients to analyse their spending, set and manage budgets and understand their future cash-flow needs.

With this tool, Wealth Help cli-ents can aggregate accounts from all of their financial services pro-viders into a private and secure Personal Data Vault, a feature powered by the eWise patented Client-Side account aggregation technology.

Wealth Help co-founder Stuart Bailey said: "The marketplace has forced many lower income earners to essentially be priced out of advice in general. We want to redress the balance and use technology to help reduce the costs associated with advis-ing clients.""For us to be able to clearly

state to our users that they never need to disclose their online credentials to a third-party and that their financial information

is secure and private is brilliant."eWise president & CEO David

Hamilton said: "While we have seen strong evidence in the UK that people are taking a more active role in managing their financial well being, there are millions of Britons not saving adequately for retirement. We are excited to be working with the team at Wealth Help to ensure that people get organised with their finances and to take the guess work out of their finan-cial future."

DST Systems to buy Wealth Management Systems for $64mDST Systems has agreed to acquire Wealth Management Systems, a New York-based employee benefit and technology services company, for $64m.

WMSI offers rollover and advisor solutions, along with financial planning and education tools and communications.

Clients of WMSI range from large to small businesses in the financial services and employee benefit arenas.

On completion of the deal, WMSI and its employees will become part of the DST Retire-ment Solutions business unit.

DST Retirement Solutions president, Jude Metcalfe, says:

"This acquisition of an estab-lished leader in the rollover busi-ness places us squarely at that point of intersection. I think DST is uniquely positioned now to help asset managers and broker-dealers grow and retain assets in the retirement space."

The deal is expected to close by 2015 end.

NAB Wealth to pay A$25m to clients over platform errorNAB Wealth, the wealth man-agement business of National Australia Bank, has decided to pay A$25m ($18.38m) to nearly 62,000 clients affected by error in its Navigator Wrap wealth management platform.

The problems dated back to 2001 and affected clients when they were closing accounts.

The compensation follows an independent review by

PricewaterhouseCoopers at the request of the Australian Securi-ties & Investments Commission (ASIC).

The review identified errors in the way income and tax was allo-cated on the platform, which led to customers receiving less than they should have.

NAB Wealth expects to pay each customer A$400, includ-ing interest. But half of them will receive less than A$100, the bank said.

Group executive, NAB Wealth and chief executive of MLC, Andrew Hagger said NAB would write to customers and advisers over the coming weeks to explain this legacy issue and what NAB has done to fix the problem.

Andrew Hagger, group execu-tive of NAB Wealth, in a state-ment said: "NAB Wealth has applied significant focus to our breach identification and report-ing processes, which is what led to NAB originally reporting this legacy issue to ASIC."Our teams have worked exten-

sively, with oversight by PwC and ASIC, to ensure the right processes, systems and controls are now in place."These errors are in no way

related to the quality of NAB Wealth's advice to its customers."

ASIC commissioner Greg Tanzer said: "ASIC expects banks to vigilantly monitor their platforms for issues such as this. Any issues identified should be swiftly and pro-actively reported to ASIC, with a view to promptly compensating customers."

TECHNOLOGY Private Banker International

Let’s talk technology: monthly update

Other tech headlines

eVestment launches retail investment solution for advi-sors

Brewin Dolphin unveils new D2C offering

Accudelta launches new regu-latory reporting solution for asset managers

Fieldpoint Private selects Wolters Kluwer’ platform for risk analysis

Thomson Reuters, Solvency II Wire launch regulatory diag-nostic tool for asset managers

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July 2015 y 13

REGULATIONPrivate Banker International

The latest in regulation

A monthly round-up of the big regulatory announcements that impacted the private banking and wealth management industry across the globe

Two more Swiss banks reach deal with US to settle possible tax evasion casesSwiss private banks SB Saanen

Bank and Privatbank Bellerive have

reached resolutions with the US

Department of Justice (DoJ) over

the tax evasion cases under the

department's Swiss bank programme.

The programme requires Swiss firms

to reveal how they helped wealthy

American citizens evade taxes.

Under the deal, SB Saanen Bank

will pay $1.365m and Privatbank

Bellerive will pay $57,000 in penalties

to the US to avoid prosecution over

allegations accusing them of helping

Americans evade taxes.

As per the terms of the non-

prosecution agreements, both the

banks have agreed to cooperate

in any related criminal or civil

proceedings and demonstrate

implementation of controls to

prevent misconduct.

The department said that SB

Saanen had maintained 110 US

related accounts with a maximum

aggregate value of approximately

$62m since 2008.

The US DoJ revealed that SB Saanen

provided a variety of traditional

Swiss banking services which could

assist US clients in concealing assets

and income from IRS, including

numbered or pseudonym accounts

and holding mail at the bank.

FINRA orders Wells Fargo, Raymond James, LPL Financial to pay $30m to clients

The Financial Industry Regulatory

Authority (FINRA) has ordered the

wealth-management units of Wells

Fargo, Raymond James Financial

and LPL Financial to pay over $30m

in restitution to clients allegedly

overcharged on mutual-fund sales.

According to a news release from

FINRA, Wells Fargo will have to pay

about $15m, Raymond James $8.7m

and LPL Financial $6.3m and other

fees.

The regulator said that these firms

failed to adequately supervise the

sale of mutual funds that offered

sales charge waivers.

"The firms unreasonably relied

on financial advisors to waive

charges for retirement and eligible

charitable organization accounts,

without providing them with critical

information and training," Wall

Street's self-regulator said.

In concluding these settlements,

the three brokerage firms neither

admitted nor denied the charges, but

consented to the entry of FINRA's

findings.

FINRA chief of enforcement, Brad

Bennett, said: "In this case, FINRA

is ordering meaningful restitution

to adversely affected investors

consistent with our commitment to

ensure that mutual fund investors get

the full benefit of available fee and

expense reductions.

"While Wells Fargo, Raymond

James and LPL failed to ensure that

customers received these discounts,

FINRA's sanctions acknowledge that

the firms detected and self-reported

these errors, and will provide full

restitution to customers."

India signs FATCA deal with US to curb tax evasionIndia has signed the Foreign

Account Tax Compliance Act (FATCA)

agreement with the US to fight

offshore tax evasion.

The pact will include automatic

sharing of information on bank

accounts as well as financial products

like equities, mutual funds and

insurance and is aimed at combating

the menace of black money stashed

abroad.

The agreement will allow automatic

exchange of financial information

between the two nations about tax

evaders from 30 September.

Indian financial institutions

will have to provide their central

authority with details of US account-

holders, which will be passed on to

the US Internal Revenue Service

(IRS).

The US will also provide similar

information about Indian account

holders in the US as part of the deal.

FATCA requires financial institutions

to share information about US

accounts worth over $50,000.

India has already signed a

multilateral agreement on automatic

information exchange under which it

will start receiving information from

other countries from 2017 onwards.

British banks face £40bn extra tax bill after Osborne's leviesUK's banks will have to pay £40bn

in extra taxes over a decade after

being hit with industry specific

levies imposed by Chancellor George

Osborne.

According to estimates by the

British Bankers' Association (BBA),

from 2010-2020 banks will have to

pay an extra tax of £4bn per year

in addition to the tens of billions

of other existing taxes including

corporation tax, employment taxes,

irrecoverable VAT as well as business

rates.

The calculations by BBA come

after Osborne announced a new 8%

surcharge on bank's profits in the

summer budget.

The surcharge, which will be

effective from 1 January 2016, is the

fifth new bank-specific tax measure

launched.

The BBA said that the bank levy was

paid by 30 banks, but the surcharge

will be levied on hundreds of banks

and building societies.

Although the Chancellor has also

announced reductions in the bank

levy over the next six years, the

summer budget will add a further

£1.7bn of tax to the sector over the

same period.

BBA chief executive Anthony

Browne said: "Banks expect to pay

their fair share of tax. But they do

not expect to be se singled out by

Chancellor for repeated raids which

make it harder to lend to businesses

and create jobs.”

Burr Pilger Mayer opens office in Cayman IslandsBurr Pilger Mayer (BPM), a California-

based accounting and consulting firm,

has opened an office in the Cayman

Islands to grow its alternative

investment practice.

Brian Finnegan, leader of the

firm's assurance practice group and

financial services industry group,

said: "We opened the Cayman Islands

Office to meet the demands of our

growing Hedge Fund and Alternative

Investment Group.

"The Cayman Islands is the world

leader as a domicile for hedge fund

managers, institutional sponsors,

financial service firms and private

equity investors," Finnegan said.

The firm helps clients manage

the full range of issues that affect

global businesses and investors,

including: annual audits of financial

statements, examination reports of

investment performance, statistics,

internal control reviews, FINRA & SEC

regulation and compliance, periodic

agreed upon procedure (AUP) reports

for verification of assets, service

organization reports (SSAE 16),

structuring and tax planning, and

US tax reporting and compliance for

funds and investors.

Inna Merzheritsky, partner in BPM's

international tax practice group

and a member of its hedge fund and

alternative investment group, said:

"One of the advantages of working

with BPM is our interdisciplinary

approach to advising clients. We

possess in-depth knowledge of the

financial services industry - key

processes, challenges surrounding

growth and performance, as well as

planning and compliance issues."

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www.privatebankerinternational.com 14 y July 2015

ANAL

YSIS

LIQUIDITY PROFILES: YEALANDS / SALATA Private Banker International

Liquidity profilesPBI has teamed up with sister company WealthInsight to provide monthly liquidity events that have piqued the interest of its analysts. This month, owner of Yealands Estate Limited, Peter Yealands, and founding Partner and Chief Executive Officer of Baring Private Equity Asia, Jean Eric Salata

Peter Yealands

Peter Yealands has agreed to sell an 80% stake in Yealands Estate Winery

and Vineyard Limited, a producer and distributor of wines, to Marl-

borough Lines Limited, an owner and operator of electricity networks

involved in providing electrical contracting services, installation and

connection of distributed generation equipment and design services for

overhead and underground power supplies, for proceeds of NZD89m

($60.28m). Both Yealands Estate Winery and Vineyard and Marlborough

Lines are based in New Zealand.

Peter Yealands is an owner of Yealands Estate Winery and Vineyard.

Yealands' stake in Yealands Estate Winery and Vineyard was reduced

from 75% to 15%, with Jason Judkins keeping the remaining 5% stake.

Profile:

Peter Yealands, born in 1948, is the founder and owner of Yealands Estate

Limited. He dropped out of school at the age of 14. He is married to Vai

Yealands and his son Aaron Yealands is now involved in the companies'

management. He likes spending time with his family and travelling.

Full Name: Mr. Peter Yealands

Known As: Peter Yealands

Gender: Male

Citizenship: New Zealand

Languages: English

Liquidity Event: 2 Jul 2015, Peter Yealands sells 80% stake in Yealands

Estate Winery and Vineyard Limited to Marlborough Lines Limited.

Profile:Jean Salata is a Founding Partner and Chief Executive

Officer of Baring Private Equity Asia. He is also a

Director at Bolero International Limited. Born in 1968,

he currently lives in Hong Kong. Jean received a B.S.

in Finance and Economics from Wharton School at the

University of Pennsylvania. In addition, Jean is affiliated

with Emerging Markets Private Equity Association,

holding the position of Director.

Full Name: Mr. Jean Eric Salata

Gender: Male

Citizenship: Hong Kong

Languages: Mandarin, English

Liquidity Event: 7 Jul 2015, Baring Private Equity Asia

has entered into an agreement to acquire Orangefield

Group.

Jean Eric SalataBaring Private Equity Asia, an independent private equity firm based in Hong Kong, has entered into an agreement to acquire Orange-field Group, a global full service provider of administrative, fund, corporate and manage-ment services, from AAC Capital Partners Hold-ing BV. Orangefield and AAC are based in the Netherlands.

AAC is an investment management company.The transaction is expected to be completed in the fourth quarter of 2015 and is subject to regulatory approvals and other customary clos-ing conditions.

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PEOPLE MOVESPrivate Banker International NEW

S

n PEOPLE MOVES

Name Moved from Moved to Old position New position

UK Ian Dewar Brewin Dolphin Arbuthnot Latham non-executive director non-executive director

UK

John McFarlane (interim replacement for Anthony Jenkins)

Barclays Barclays chairman chief executive

UK

Tracey McDermott (interim replacement for Martin Wheatley)

FCA FCA enforcement chief CEO

UK Andy Brodie Barclays W&IM Standard Life Wealth Wealth director head of operations

Switzerland William Kennedy UBS UBShead ofinvestment products and services, wealth management

global head of distribution for global asset management

Switzerland Barend Fruithof Credit Suisse Julius Baer head corporate clients manager of global custody business

Switzerland Adrien Pichoud SYZ GroupSYZ Asset Management

economist chief economist

Switzerland Yves Bonzon Pictet BTG Pactual chief investment officer partner at BSI

Canada Marcia Moffat Compasar Solutions BlackRock founder and principal operations head

USAFrancesca Boschini

RBC Wealth Management

Deutsche AWMdirector and head of U.S. and International Wealth Planning

wealth planning

Canada Doug Guzman RBC Capital MarketsRBC Wealth Management

head of global investment bankinggroup head wealth management and insurance

USA Paul Donofrio Bank of America Bank of AmericaCFO, consumer banking and global wealth and investment management

chief risk officer and chief financial officer

Hong Kong Guilherme Lima HSBC HSBC group head of strategyhead of Premier and wealth business for Asia Pacific

Hong Kong Simon Collier HSBC HSBCglobal head of wealth and insurance business services

global head of wealth solutions

Singapore Harjeet SinghJ.P. Morgan Private Bank

BNP Paribas executive directormanaging director, team head and senior banker for Non Res Indians (NRIs), Singapore and SE Asia

People movesThis month, William Kennedy became the global head of distribution for global asset management for UBS, based in Switzerland, and John McFarlane was made the interim replacement for Anthony Jenkins in the chief executive's position at Barclays. Here are the key people moves that recently made news

July 2015 y 15

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COM

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16 y July 2015

CHRISTIE'S Private Banker International

Editor: Meghna Mukerjee Email: meghna.mukerjee@uk.timetric.com

Tel: +44 (0)20 7406 6713

Correspondent: John SchafferEmail: john.schaffer@uk.timetric.com

Tel: +44 (0)20 7406 6703

Contibutor: Douglas Blakey

Group Publisher: Ameet Phadnis Tel: +44 (0)207 406 6561 Email: ameet.phadnis@timetric.com

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PRIVATE BANKER

Delivering innovative mobile & online financial services solutions to organisations that need to provide secure access

To find out more about us please visit: www.intelligentenvironments.com

We are an international provider of innovative mobile and online solutions for financial service organisations. Our mission is to enable our clients always to stay close to their customers.

We do this through Interact®, our single software platform, which enables secure financial applications, engagement, transaction and servicing across all digital channels. Today these are predominantly focused on mobile, PCs & tablets. However Interact® can and will support other form factors, as and when they proliferate (as seen by our work to develop digital banking for the Smartwatch).

We provide a ready alternative to internally developed solutions, enabling our clients with a faster route to market, expertise in managing the complexity of multiple devices and operating systems, and a constantly evolving solution.

IE-Advert-Dec-2014.indd 1 16/12/2014 12:25:21

The Business of ArtPaul Hewitt, head of client strategy for Christie’s in Europe, the Middle East, Russia and India, reflects on the similarities between the art market and private banking industries

The increasing number of ultra high net worth individuals (UHNWIs) living and working in a highly interconnected global market, operating with real time

information is just one of the opportunities cli-ent relationship management teams in private banking have in common with client teams in the fine art auction business. However, there are also some important differences.

Since the financial crisis of late 2008, art has become one of a number of alternative assets of choice for passion investors.

Over and above the security of holding a tangible asset, owning a unique and rare work of art has the added benefit of giving pleas-ure and access to circles of other like-minded patrons. The increase in values for selected 20th century arts such a Picasso, Warhol and Bacon has been eye watering and grabbed the headlines, however, their owners’ reluctance to sell suggests that, more than ever, enjoy-ment trumps pure financial return.

Christie's, like many of the leading private banks, has had to adjust both our style of busi-ness and the ways we organise sales to satisfy the demands of new collectors from Main-land China, Asia, Russia, and The Gulf. It is no longer about the next transaction, rather building a trusted advisor relationship with a team of specialists who work with clients to identify their long term collecting goals.

Auction sales are now more tightly curated. For instance, Christie’s held an innovative auc-tion entitled Looking Forward to The Past in New York in May 2015 where the very best works of the 20th century were offered. The subsequent headlines for the highest price for a single work were among the stellar results of a $1.726bn week at Christie’s.

In addition to our auction sales, art works are increasingly being bought and sold by ‘pri-vate sale’ brokered by Christie's. The increas-ing interest in private sales has provided another solution for those wishing to liquidate assets quickly or for clients seeking a bespoke service. Given Christie’s global reach along-side a magic combination of quality and rarity, this can lead to speedy transactions.

Art Fairs, such as Art Basel supported by UBS, Frieze’s partnership with Deutsche Bank and Masterpiece’s alliance with Royal Bank of Canada have become popular sponsorship opportunities for private banks and an illus-tration of the crossover of clients between the

two industries.Similar to the private banking industry,

Christie's is obliged to ask clients to comply with rigorous anti-money laundering laws when registering for the first time. As part of our duty of care to vendors, we are also obliged to ask for proof of credit worthiness. A referral or reference from a private banker can be very useful here. The impact of digi-talisation and the opportunities offered by the internet are another area of common interest.

Clients are able to manage their collections with sophisticated software systems such as Collectrium; browse the Christie's website for information about forthcoming sales; or indeed register to bid. The internet has also opened up new opportunities, allowing some clients to participate in select Christie’s auc-tions held online.

Christie’s is proud of its 250 years of lead-ing and innovating in the art world. The val-ues that inspired our founder, James Christie, when he started his business in Pall Mall in 1766, are as true today as they were then: put your clients long term interests first and give them quality advice. <

PBI 321-return.indd 16 05/08/2015 15:37:09

Delivering innovative mobile & online financial services solutions to organisations that need to provide secure access

To find out more about us please visit: www.intelligentenvironments.com

We are an international provider of innovative mobile and online solutions for financial service organisations. Our mission is to enable our clients always to stay close to their customers.

We do this through Interact®, our single software platform, which enables secure financial applications, engagement, transaction and servicing across all digital channels. Today these are predominantly focused on mobile, PCs & tablets. However Interact® can and will support other form factors, as and when they proliferate (as seen by our work to develop digital banking for the Smartwatch).

We provide a ready alternative to internally developed solutions, enabling our clients with a faster route to market, expertise in managing the complexity of multiple devices and operating systems, and a constantly evolving solution.

IE-Advert-Dec-2014.indd 1 16/12/2014 12:25:21

PBI 321-return.indd 29 05/08/2015 15:37:09

For further information please email:

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