Submitted by: Submitted by eliesaab
Views: 382
Words: 8895
Pages: 36
Category: Business and Industry
Date Submitted: 06/01/2012 10:59 AM
PRIVATE BANKING IN EUROPE – Getting Clients & Keeping Them!
Philip MOLYNEUX
SBARD, University of Wales Bangor, Hen Goleg, College Road, Bangor, Gwynedd LL57 2DG, United
Kingdom, p.molyneux@bangor.ac.uk
Anna OMARINI
Department of Business Administration, Institute of Financial Markets and Institutions "G. dell´Amore",
Università Bocconi, via Sarfatti 25, 20136 Milano, anna.omarini@unibocconi.it
Abstract
The paper examines the features of private banking business in Europe and focuses on the key roles of client
segmentation, retention and acquisition. There has been substantial growth in private banking business over
the last decade or so as commercial banks have targeted both the 'mass-affluent' and more upmarket high net
worth individuals (HNWI’s). The combined amount of investable assets at the disposal of these two groups
amounts to around Euro 6 trillion and a wide range of banks, investment firms and other operators have
focused on devising strategies aimed at grabbing a share of this potentially lucrative market. The private
client wealth management industry in Europe remains relatively fragmented although a few major players
have emerged and consolidation is an ongoing theme in the sector. Given the commercial opportunities
afforded by this business area the increased complexity of clients needs continues to be a critical strategic
issue for industry participants. This paper illustrates important themes relating to the wealth management
service proposition and focuses on client segmentation, retention and acquisition strategies. Overall we find
that private banks will have to adopt a more systematic approach to these areas and in particular also have to
pay greater qualitative and quantitative attention to client satisfaction, trust and loyalty issues if their client
retention and acquisition strategies are to be a success.
Keywords
Private banking, wealth management, segmentation,
1
Introduction
Private banking...