The private banking sector has changed a lot in recent years. While the prime focus used to be on maintaining client relationships, private bankers presently have to deal with an ever-increasing administrative burden that prevents them from building genuine relationships with their wealthy clients.
This cultural change is partly required due to regulatory necessities and internal reporting lines. However, it equally suits bank managers to avoid an intense bonding between the private banking client and the private banker.
In this environment, it can be bizarre for some bankers to call themselves genuine relationship managers. Yet, this presents an excellent opportunity for independent wealth managers who can focus on maintaining client relationships and offer a personalised approach. They can progressively develop a deeper understanding of their wealthy clientโs needs and goals by working collaboratively to provide better support. I like terming it Private Banking 2.0.
However, the fundamental question in the room will be: If banks stop cultivating relationship managers with traditional socialising skills, who will โproduceโ hunting relationship managers, who typically move into the independent wealth management industry? Does our modern and holistic wealth management sector have to become a โhunting relationship manager breederโ today, so we have a right to exist in the future?
Source: LinkedIn
