The current semiconductor shortage is significantly impacting the automotive industry, leading to a reduction in available comfort options for new car orders. Car manufacturers are cautious about disclosing specifics regarding the unavailability of certain components, as the situation is subject to change.
This scenario has parallels in private banking, where banks may suddenly decide to reduce the number of client markets they serve. This decision can lead to relationship managers resigning and wealthy clients being forced to close their accounts. For relationship managers, finding new employment at another bank carries the risk of encountering similar issues. In contrast, transitioning to a client-domicile-focused independent wealth management firm can be a safer option.
In such wealth management firms, if a custodian bank chosen for clients decides to stop servicing a specific client domicile, the relationship managers can maintain their employment. They simply guide their wealthy clients to a new bank that focuses on the relevant client domicile, minimising disruption.
Drawing a conclusion from the semiconductor issue: While some conveniences like the hands-free boot release or a powerful hi-fi system might not be available, these are minor sacrifices in the broader context of adapting to current market realities and client needs.
Source: LinkedIn
