In the complex world of private banking and independent wealth management, the perception of value cements the bond between a relationship manager and their client. Everyone knows relationship management time is a finite resource.
Before granting discounts, a relationship manager must meticulously evaluate their earnings with a particular client. While flaunting large Assets under Management can impress, real revenue matters most in the end. 💼
Discounts can be a strategic approach to securing competitive clients. Yet, this form of client acquisition is no easy task. Discounts often tailor pricing for diverse and discerning clientele, but this comes with unique challenges.
Relationship managers often lack insights into revenue and pricing KPIs across various fee layers, including revenue sharing on in-house products. They need software tools to analyse the economic implications of discounts and the internally set targets for Return on Assets. Discounts are often granted without prior knowledge of the ensuing revenue loss. While workflow solutions are standard in many domains, discount approvals often rely on unstructured, manual processes, which can lead to potential errors and inconsistencies. 📊
Given these challenges, relationship managers should exercise caution when offering discounts to ensure each client’s profitability. Their client book could be reallocated at any time.
Private Banking transcends fee discussions and performance comparisons. It’s about cultivating relationships and delivering value without sacrificing the bottom line. At its core, private banking focuses on understanding clients’ unique needs, preferences, and goals. This personalised approach builds trust and loyalty, ensuring clients feel valued and understood.
Please reach out if you’re interested in a straightforward and transparent fee model and aim to be at the forefront of the value chain. 📩
Source: LinkedIn (SEO adjusted)
