Covering non-traditional investment themes like direct lending and alternative investments requires significant effort for small banks and independent wealth managers. It involves research specialists filtering the investment universe, performing on-site due diligence, and selecting the appropriate investment managers. These steps increase headcount and operational costs without directly boosting the financial institutionโs income.
An HNWI/UHNWI client of a financial institution remains a client either because they appreciate the private bankโs iconic brand or because of the relationship manager. This client loyalty could pave the way for a shared economy in the pricey investment know-how sector. For example, with Uber, both the company and the driver earn something when transporting clients, and both are part of the same platform. This economic opportunity exists in our industry as well. Both parties could lower costs and increase revenue by sharing investment knowledge and platform resources.
Covering non-traditional investment themes like direct lending and alternative investments requires significant effort for small banks and independent wealth managers. It involves research specialists filtering the investment universe, performing on-site due diligence, and selecting the appropriate investment managers. These steps increase headcount and operational costs without directly boosting the financial institutionโs income. ๐ผ๐ก
An HNWI/UHNWI client of a financial institution remains a client either because they appreciate the private bankโs iconic brand or because of the relationship manager. This client loyalty could pave the way for a shared economy in the pricey investment know-how sector. For example, with Uber, both the company and the driver earn something when transporting clients, and both are part of the same platform. This economic opportunity exists in our industry as well. Both parties could lower costs and increase revenue by sharing investment knowledge and platform resources. ๐ธ๐
Additionally, this collaborative approach fosters innovation and efficiency. By pooling resources, small banks and wealth managers can compete with larger institutions, offering bespoke services and leveraging shared expertise. Ultimately, this model benefits clients by providing diverse, high-quality investment options while maintaining personalised service. ๐๐
Source: LinkedIn (SEO adjusted)
