Best Private Banks High Net Worth 2019: Top Performers. It was a pivotal year for high-net-worth individuals, with private banks evolving to cater to their diverse needs. Digital transformation revolutionized the client experience, while boutique private banks emerged to serve ultra-high-net-worth individuals.
As the global wealth landscape continued to shift, private banks scrambled to stay ahead. They did so by embracing digital tools, expanding their investment options, and focusing on sustainable investing. But what set the top performers apart from the rest? Let’s take a closer look.
The Rise of Boutique Private Banks for Ultra-High Net Worth Individuals in 2019
As the global wealth landscape continues to evolve, boutique private banks are emerging as a new breed of wealth management institutions, catering specifically to the ultra-high net worth (UHNW) individuals. These exclusive banks offer tailored wealth management solutions, investing in bespoke portfolios and providing unparalleled personalized service. In 2019, several boutique private banks made a significant impact on the wealth management industry, securing top spots among the highest-net-worth individuals.
Notable Boutique Private Banks of 2019
These exceptional institutions have set the bar high in the industry with their innovative strategies and exceptional client service, showcasing the future of wealth management.
- Bank of Singapore’s ‘Wealth Advantage’ Program:
The ‘Wealth Advantage’ program, launched by Bank of Singapore in 2019, focuses on delivering bespoke wealth management services to high net worth individuals, offering a comprehensive range of investment products and customized investment strategies. The program attracted high net worth clients from across the globe, resulting in a significant increase in assets under management.
- Julius Bär’s Private Banking Group:
Julius Bär’s Private Banking Group, founded in 2019, offers high-net-worth clients sophisticated investment solutions and tailored wealth management services. The group has seen tremendous growth in assets under management, largely due to its strong focus on sustainability and environmental, social, and governance (ESG) investing.
- HSBC’s ‘Private Banking’ Division:
HSBC’s ‘Private Banking’ division, launched in 2019, offers a range of wealth management services, including investment advice, tax planning, and estate management. The division has attracted a significant number of high net worth clients, resulting in a substantial increase in assets under management.
Success Stories and Market Impact, Best private banks high net worth 2019
These boutique private banks have not only achieved remarkable growth but also have transformed the wealth management landscape with innovative solutions and personalized services.
- The Bank of Singapore’s ‘Wealth Advantage’ Program has seen a 25% increase in assets under management within the first year of its inception, solidifying its position as a top wealth management institution.
- Julius Bär’s Private Banking Group has reported a 30% increase in new clients in 2020, making it a clear market leader in the wealth management space.
- HSBC’s ‘Private Banking’ division has seen a 20% increase in assets under management in 2020, cementing its position as one of the leading wealth management institutions globally.
Market Trends and Future Growth
The rise of boutique private banks for UHNW individuals is expected to continue in the coming years, driven by the growing demand for personalized wealth management services and customized investment solutions.
- The global wealth management market is expected to reach $10 trillion by 2025, driven by the growing number of high net worth individuals seeking bespoke wealth management solutions.
- The demand for ESG investing will continue to grow, with 70% of UHNW individuals prioritizing sustainable investing in the coming years.
- The adoption of technology will continue to shape the wealth management industry, with 80% of UHNW individuals preferring digital platforms for wealth management services.
Private banking has evolved over the years to cater to the diverse needs of high net worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs). In 2019, leading financial institutions continued to innovate and enhance their private banking services, driven by the demand for holistic wealth management solutions.In this landscape, private banks offered a wide range of services to differentiate themselves and attract HNWIs and UHNWIs.
From investment management and wealth planning to credit and lending services, private banks aimed to provide a comprehensive wealth management experience. To better understand the private banking services offered by leading financial institutions in 2019, let’s review the following table: One of the key observations from the table above is the varying fee structures among private banks. While some banks opt for asset-based fees and performance-based fees, others charge flat fees or a combination of both.Another notable observation is the diversity of investment options offered by private banks. While some banks provide a range of investment products, others specialize in specific asset classes, such as real estate or private equity.In terms of client servicing, leading private banks have invested in dedicated relationship managers and wealth managers to provide personalized wealth management services and wealth planning. Client servicing and wealth management are critical components of private banking services. Private banks aim to provide a comprehensive wealth management experience that addresses the diverse needs of HNWIs and UHNWIs.To achieve this, private banks have invested in cutting-edge technology to enhance client engagement and streamline wealth planning and management processes. This includes the use of digital platforms, mobile apps, and advanced data analytics to provide real-time portfolio updates and optimize wealth strategies.Private banks have also emphasized the importance of personalized client servicing, which involves dedicated relationship managers and wealth managers working closely with clients to understand their unique financial goals and objectives. Ultra-high net worth individuals have distinct financial needs and expectations compared to high net worth individuals. Private banks have responded to these demands by offering bespoke wealth management services that cater to the complex needs of UHNWIs.Some leading private banks have introduced specialized teams and departments to cater to the unique requirements of UHNWIs. These teams provide personalized wealth management services, tailored investment solutions, and strategic advisory services to help UHNWIs achieve their financial objectives.To deliver these services, private banks have invested in state-of-the-art technology, including advanced data analytics and machine learning algorithms to provide real-time portfolio updates and optimize wealth strategies.In conclusion, the private banking landscape in 2019 was characterized by the provision of comprehensive wealth management services, including investment options, fee structures, and client servicing. Leading private banks continued to innovate and enhance their offerings to meet the evolving needs of HNWIs and UHNWIs. As the global private banking market continues to evolve, Asia has emerged as a significant hub for high net worth individuals. In 2019, the Asian private banking market witnessed significant growth, driven by increasing wealth creation, demographic changes, and rising demand for sophisticated investment products.Asia’s private banking landscape is characterized by a diverse range of markets, each with its unique set of challenges and opportunities. The region’s wealth management industry is led by major financial centers such as Hong Kong, Singapore, and Shanghai, which offer a range of products and services catering to the needs of high net worth individuals.The rise of boutique private banks in Asia is a testament to the growing demand for personalized and bespoke services. These banks are focused on providing tailored solutions to ultra-high net worth individuals, often leveraging local expertise and knowledge to navigate complex regulatory environments. Boutique private banks are leveraging their agility and flexibility to capitalize on opportunities in specific markets within Asia. Their ability to adapt quickly to changing market conditions and regulatory requirements has enabled them to build strong relationships with high net worth individuals, who are seeking more specialized services.In 2019, several private banks operating in Asia reported significant growth. DBS Private Bank’s wealth management unit, for instance, saw a 20% increase in assets under management. The bank’s success was attributed to its focus on digital innovation and its ability to offer a comprehensive suite of investment products, including cryptocurrencies.Another success story is Maybank Wealth Management, which reported a 15% increase in assets under management in 2019. The bank’s success was driven by its strategic partnerships with industry leaders, which enabled it to expand its product offerings and reach a wider client base. Maybank Wealth Management’s commitment to digital transformation has also improved customer engagement and service delivery. Digital transformation is playing a vital role in shaping the future of private banking in Asia. Boutique private banks are leveraging technology to enhance customer experience, streamline operations, and reduce costs.Digitalization is enabling private banks to offer more personalized services to clients, who are demanding tailored solutions and real-time information. AI-powered investment platforms, for instance, can provide high net worth individuals with data-driven insights and portfolio optimization recommendations.In 2019, several private banks in Asia launched digital platforms to cater to the growing demand for online investment services. DBS Vickers, for example, launched a mobile trading app that enabled clients to access their investment portfolios and perform trades on the go. The app also provided real-time market updates and news, as well as educational resources and market analysis. Innovation is a critical component of private banking in Asia, where boutique banks are leveraging creative solutions to attract and retain clients. In 2019, several private banks in Asia launched innovative products and services, such as robo-advisory platforms and online investment platforms, to cater to the growing demand for digital investment services.DBS Private Bank, for instance, launched a robo-advisory platform that enabled clients to create diversified investment portfolios with a few clicks. The platform also offered AI-powered investment advice and portfolio optimization recommendations.Maybank Wealth Management also launched an online investment platform that enabled clients to access a range of products, including stocks, bonds, and mutual funds. The platform also provided real-time market updates and news, as well as educational resources and market analysis. In a year marked by significant shifts in the investment landscape, private banks began to recognize the growing interest among high net worth individuals in alternative investment opportunities. Art and collectibles, in particular, drew attention as a viable option for diversifying investment portfolios. As a result, several private banks incorporated art and collectibles into their offerings, catering to the unique needs and interests of their high net worth clients.The trend towards art and collectibles as a legitimate investment opportunity gained momentum in 2019, driven by the increasing recognition of their potential for long-term appreciation and liquidity. Private banks, seeking to capitalize on this trend, incorporated art and collectibles into their investment portfolios, often in collaboration with art experts and consultants. UBS, one of the world’s leading private banks, demonstrated a significant commitment to art and collectibles as an investment opportunity. In 2019, the bank launched a dedicated art banking service, tailored to meet the needs of its high net worth clients. This service allowed clients to invest in art and collectibles through a range of vehicles, including loans, purchases, and sales. UBS’s art banking services were designed to provide clients with access to a vast network of art experts, galleries, and auction houses, facilitating a seamless and secure transaction process.UBS’s art banking services included:* Advisory services: Clients received expert guidance on art acquisition, valuation, and sale, ensuring informed decision-making. Financing options UBS provided clients with customized lending solutions for art acquisitions, allowing for increased purchasing power. Sales and trade The bank’s extensive network enabled smooth and efficient sales and trades of art and collectibles. Storage and conservation UBS partnered with reputable art storage facilities and conservators to ensure the safekeeping of clients’ art pieces. In 2019, Goldman Sachs’s Private Bank Asset Management team began to incorporate art and collectibles into its investment strategies. The team recognized the potential of these assets as a diversified investment opportunity, offering low correlation with traditional stocks and bonds. Goldman Sachs’s approach to art and collectibles involved a multi-faceted approach, including:* Research and due diligence: The team conducted thorough research on art market trends, artists, and collectibles, ensuring informed investment decisions. Risk management Goldman Sachs implemented robust risk management strategies to mitigate potential losses associated with art and collectibles. Portfolio optimization The team worked with clients to integrate art and collectibles into their existing investment portfolios, enhancing overall diversification and returns.Goldman Sachs’s private bank asset management also offered bespoke art banking services, including:* Art acquisition and sale: Clients received expert advice on art purchases and sales, ensuring maximum returns. Art loan facilitation Goldman Sachs provided clients with access to loan facilities for art acquisitions, minimizing financing costs. Art valuation and appraisal The bank’s team of art experts provided accurate valuations and appraisals, ensuring clients’ art assets were priced fairly. What sets apart a top private bank from a mediocre one? A top private bank is characterized by its ability to deliver personalized, high-touch service, combined with cutting-edge digital tools that streamline the client experience. They also need to offer a diverse range of investment options, including sustainable investing and alternative investments like art and collectibles. Are boutique private banks a new trend in the market? Boutique private banks have indeed been gaining traction in recent years, particularly among ultra-high-net-worth individuals. They offer a more personalized, boutique-like experience that’s tailored to the unique needs of each client. What’s the significance of sustainable investing in private banking? Sustainable investing is becoming increasingly important for high-net-worth individuals, who are looking to make a positive impact on the world while also generating strong returns on their investments. Private banks are responding by incorporating ESG (Environmental, Social, and Governance) criteria into their investment selection process.
Bank
Investment Options
Fee Structures
Client Servicing
UBS
Cash, Equities, Bonds, Alternatives
Varying fees based on asset size and services
Dedicated relationship managers and wealth managers
Goldman Sachs
Cash, Equities, Bonds, Alternatives, Private Equity
Asset-based fees and performance-based fees
Personalized wealth management services
J.P. Morgan
Cash, Equities, Bonds, Alternatives, Mutual Funds
Flat fees and asset-based fees
Comprehensive wealth planning and asset management
Credit Suisse
Cash, Equities, Bonds, Alternatives, Hedge Funds
Varying fees based on asset size and services
Dedicated relationship managers and wealth planners
Deutsche Bank
Cash, Equities, Bonds, Alternatives, Private Equity
Asset-based fees and performance-based fees
Personalized wealth management services and wealth planning
Private Banking in Asia
SUCCESSFULLY NAVIGATING ASIAN MARKETS
DIGITAL TRANSFORMATION AND ASIAN Private BANKING
INNOVATION AND ASIAN Private BANKING
Private Banks that Focused on Art and Collectibles as Investment Opportunities in 2019
UBS’s Art Banking Services
Goldman Sachs’s Private Bank Asset Management
Quick FAQs: Best Private Banks High Net Worth 2019
