Share thoughts, ideas and perspectives on how Private Banking can move forward and meet client expectations while still contributing to the bottom line at Golden Networking’s 2nd Banking Leaders Forum, “Private Banking on the Brink of Transformational Change”, November 18th, New York.
New York, NY, November 04, 2010 — “The last 18 months have been a period that most private bankers will never forget. Scared by plummeting asset prices and the surrender or near collapse of some of the world’s leading wealth management icons, clients have shifted their assets away from the large megabanks to smaller private or regional banks on a massive scale.” Leaders will comment on the state of the industry at Golden Networking’s 2nd Banking Leaders Forum, “Private Banking on the Brink of Transformational Change”, November 18th, New York.
Booz & Company has taken a closer look at the world’s leading wealth management markets to understand the core drivers of private banking: “While the wealth management industry has yet to find its new equilibrium, there are three fundamental characteristics across all surveyed wealth management markets that remain unscathed by the recent financial turmoil: First, private banking is an industry fundamentally geared for growth driven by sociodemographic factors, entrepreneurship, and the increasing concentration of wealth. Second, revenue pools in private banking are cyclical in nature, strongly tied to the underlying equity market across all markets. Third, private banks have once again proven highly resilient, being able to generate profits even in difficult times.”
“Apart from the core drivers, significant changes will affect the private banking industry going forward. The tectonic shift in global wealth distribution toward the East will further accelerate, and given the growing regulatory pressure, wealth will increasingly be kept onshore. High-net-worth individuals globally will behave more pragmatically as they have a more astute understanding of financial products. Widespread mistrust of state and financial institutions will increase the role of the client relationship manager as a trusted advisor. Pressure on margins is here to stay. Finally, new private banking business models will take shape as it becomes increasingly challenging for a private bank to be everything to everybody.”
According to the Booz & Company report, private banks must adapt to these new imperatives. “The long-term business prospects for the private banking industry are positive, but in response to the changes ahead, private banks need to make a number of strategic choices to adapt their business models to the new realities. First, private banks with growth ambitions need to seriously commit to emerging markets, where having a full multi-shoring value proposition will be critical to success. Private banks also need new client service models to restore client trust while ensuring compliance and cost-efficient servicing. The enduring pressure on margins will make further cost reduction measures unavoidable. Finally, the need to more clearly separate distribution, production, and operations—in response to regulatory and client demands and cost pressures—will prompt an industry consolidation along these boundaries. We do not yet know whether the worst of this storm is over or is yet to come. But what is clear today is that private banking offers plenty of opportunities for those who are strategically prepared.”
2nd Banking Leaders Forum, “Private Banking on the Brink of Transformational Change”, is produced by GoldenNetworking.net (goldennetworking.net), the premier networking community for business executives, entrepreneurs, investors and diplomats, founded by former McKinsey consultant and Columbia Business School MBA Edgar Perez. Upcoming Golden Networking’s Forums and Business Receptions include:
•High-Frequency Trading Happy Hour, (HFTHappyHour.com), November 9th, New York City
•2nd Banking Leaders Forum, “Private Banking on the Brink of Transformational Change” (BankingLeadersForum.com), November 18th, New York City
•High-Frequency Trading Experts Workshop 2010, “Practical Implementation of High-Frequency Trading Strategies” (HFTExpertsWorkshop.com), November 22 & 23, Hong Kong
•Public Finance Leaders Forum 2010, “How Private Funds Can Invest in Government-Owned Property and Public Projects” (PublicFinanceLeadersForum.com), December 2nd, New York City
•High-Frequency Trading Happy Hour, (HFTHappyHour.com), December 7th, New York City
•2nd Private Equity Leaders Forum, “Setting the Stage for Radical Transformation in 2011 and Beyond” (PrivateEquityLeadersForum.com), December 9th, New York City
•High-Frequency Trading Experts Workshop 2010, “Practical Implementation of High-Frequency Trading Strategies” (HFTExpertsWorkshop.com), December 9 & 10, New York
Golden Networking has compiled the insights of top experts and industry practitioners and produced DVD Video Packages for its Leaders and Experts Forums, including:
•2nd China Leaders Forum DVD Video Package, “Is the Chinese Dragon Poised for Global Dominance or Economic Implosion?”, ChinaLeadersForum.com
•Distressed Investing Experts Forum 2010 DVD Video Package, “Analyzing and Valuing Distressed Companies, Securities and Real Estate”, DistressedInvestingExpertsForum.com
•Derivatives Leaders Forum 2010 DVD Video Package, “Strategies for Increasing Profits under an Evolving Regulatory Framework”, DerivativesLeadersForum.com
•High-Frequency Trading Leaders Forum 2010 DVD Video Package, “Innovating and Profiting from High-Frequency Trading in 2010 and Beyond”, HFTLeadersForum.com
•Hedge Funds Leaders Forum 2010 DVD Video Package, “Generating Alpha in Challenging Times”, HedgeFundsLeadersForum.com
•High-Frequency Trading Experts Forum 2010 DVD Video Package, “Starting and Running a High-Frequency Trading Operation”, HFTExpertsForum.com
•Distressed Investing Leaders Forum 2010 DVD Video Package, “Extraordinary Opportunities Investors Cannot Afford to Pass”, DistressedInvestingLeadersForum.com
•China Leaders Forum 2009 DVD Video Package, “Addressing the Challenges Posed by the Present Wave of Chinese Globalization”, ChinaLeadersForum.com
•Distressed Investing Leaders Forum 2009 DVD Video Package, “The Most Comprehensive Guide for Any Investor in Distressed Assets”, DistressedInvestingLeadersForum.com
Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to [email protected]. Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, “Happy Hour for High-Frequency Trading”, The New York Times, “Golden Networking Helps Job Seekers Make Overseas Connections”, Los Angeles Times, “Speed-addicted traders dominate today’s stock market”, Reuters, “Revamp looms as trading experts huddle at SEC” and Columbia Business School’s Hermes Alumni Magazine, “10 Under 10”.
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Contact:
Edgar Perez
Golden Networking
New York, NY
516-761-4712
[email protected]
http://www.bankingleadersforum.com
