Evaluation of Financial Products in Private Banking

Publisher Name :
Date: 17-Oct-2012
No. of pages: 59
  • Financial institutions need to design new financial products to cater to the emerging new segment of wealthy individuals, particularly within the Asia-Pacific region. Retail banks need to identify new products and services to improve the revenues, assess needs and offer convenient, effective service to targeted, high yield accounts
  • This report assesses the emerging opportunities available to both senior strategic staff and those at regional and branch level, looking to attract wealthy individuals with personalized financial products
  • It covers various emerging financial products targeted to new emerging segments in the banking industry
  • Key issues in segmentation and the various approaches for handling the issues are thoroughly discussed
  • It also provides in-depth knowledge on key trends of various segments such as HNWI and UHNWI

Summary

The private banking industry is experiencing increased demand for various financial products from the growing number of high net worth individuals (HNWIs), particularly in the Asia Pacific region. The emergence of a new segment of wealthy individuals has spurred the interest of many leading competitors in the industry. In addition, the growing diversification of wealthy clientele has attracted considerable attention among key competitors, and new opportunities are beginning to emerge. The private banking and wealth management industry is starting to focus more on client service and value delivery for this segment.

Scope

This report will allow you:

  • To assess the new opportunities for business development based on the investment and wealth allocation practices of HNWIs
  • To understand the major challenges faced by the financial services industry such as trust and examine investment opportunities in various emerging markets
  • To analyze the impact of future product and service trends in private banking, as well as the competition between private banks on product offerings
  • Understand the practices followed by various global financial institutions

Reasons To Buy

  • The report provides descriptive information regarding the investment and wealth allocation practices of HNWIs, and the challenges that wealth management advisers and firms encounter in serving the affluent
  • There is a special emphasis on offshore private banking and offshore opportunities, plus an examination of the pitfalls of offshore assets and investments
  • The report also focuses on major private banks in three key regions: the Americas, Europe-Middle East-Africa (EMEA) and Asia-Pacific
  • The report provides in-depth analysis of the key issues in the private banking industry such as trust and examines investment opportunities in emerging markets

Key Highlights

  • Financial institutions are using technology to optimize products and services to gain HNWI customers.
  • The HNW population in the Asia-Pacific region posted remarkable growth during 2009−2011.
  • Wealth management advisors and firms endorsed a new range of products such as financial and investment advisory services, lifestyle and management services, wealth management services, banking and credit products, and cross border capital allocation services.
  • The financial services industry is focusing on new emerging segments such as HNWI and UHNWI.

Evaluation of Financial Products in Private Banking

Table of Contents

1 Executive Summary

2 Financial Product Evolution: An Overview of Currency Financial Product Offerings in Private Banking
2.1 Issues and Concerns Faced by the Industry: Practices of the Financial Banking Industry
2.2 Growing Optimism in Emerging Markets: Asia-Pacific’s Financial Market on the Rise
2.3 Business Model Modifications: Regulatory Requirements and Client Needs Adjustments
2.4 Tax Issues in Offshore Private Banking
2.5 Future Wealth Distribution and Segmentation
2.6 Financial Wealth of HNWIs
2.7 Population Growth of HNWI
2.8 Financial Characteristics of HNWIs: Segmentation and Categorizing the Rich
2.9 Financial Capacities of HNWIs: Where Does the Money Come From?
2.1 Asset Management and Investment Behavior of HNWIs and UHNWIs
2.11 Asset Management Behavior of HNWIs: Changing Behavior and Investment Inclination of the Affluent
2.12 Investment Behavior: HNWI Population’s Inclination to Invest in Diversified Passion Safe Havens
2.13 Art: An Increasingly Attractive Investment for HNWIs
2.14 Jewellery, Gems and Watches: Shining Investment Strategies for the Middle Eastern Affluent
2.15 Luxury Collectibles: Investments of Choice for HNWIs
2.16 Sports Investments: Sports Franchising and Holdings of HNWIs
2.17 Wine, Coins and Antiques: Showing Potential for Financial Gains
2.18 Effects of Financial Turmoil

3 Regulatory Trends and Challenges in Private Banking
3.1 Trends in Private Banking: Various Changes in the HNWI Market
3.2 Diversified Clientele
3.3 Expanding Asia-Pacific HNWI Clientele
3.4 Continuous Effort to Rebuild and Obtain the Trust of Clients
3.5 Private Banking: Challenges and Issues
3.6 Private Banking in the Middle East: Adjusting to the Cultural and Economic Requirements in Gulf Cooperation Council Countries
3.7 Asian Private Banks: Challenges in Business Cycle and Talent Management
3.8 Changes in Wealth Allocation and Management Practices of HNWIS
3.9 Risks vs Returns: Cautious Investments

4 Diversity in Financial Product Offerings
4.1 Products and Services: Development of Private Products
4.2 Recent Product Developments
4.3 Wealth Management Services
4.4 Financial and Investment Advisory
4.5 Cross-Border Capital Allocation Services
4.6 Banking and Credit Products
4.7 HNW Clientele’s Banking and Product Preferences

5 IT Trends in Private Banking
5.1 Early Involvement of the Younger HNW Generation and Preference for Technology-Based Wealth Management
5.2 Optimizing the Wealth Management Industry via Technology

6 Development of Offshore Private Banking
6.1 Tax, Regulations and Expertise
6.2 Post-Crisis Realities in Offshore Private Banking
6.3 Alternative Client Behavior to Risk Aversion
6.4 Offshore Banking Brings De-Concentration and the Global Distribution of Wealth
6.5 Pitfalls, Risks, and Challenges in Offshore Private Banking

7 Private Banking in The Americas – Existing Conditions and Financial Product Offerings
7.1 North America’s HNWIs Remain on Top
7.2 Latin Americas’ Support for Onshore Private Banking Prompts International Banks to Move to the Region
7.3 The US
7.4 Bank of America Merrill Lynch – US
7.4.1 Investment management
7.4.2 Banking and lending
7.4.3 Concentrated stock management
7.4.4 Tax minimization strategies
7.4.5 Other services
7.4.6 Merrill Edge
7.5 Brazil
7.6 Itaú Unibanco
7.6.1 Treasury products
7.6.2 Investment funds
7.6.3 Brokerage
7.6.4 Pension plan
7.6.5 Social products
7.6.6 Alternative Products
7.6.7 Escrow

8 Private Banking in Europe, Middle East and Africa (EMEA) – Existing Conditions and Financial Product Offerings
8.1 EMEA Eclipsed by Asia-Pacific in 2011
8.2 Challenges and Threats to the EMEA Private Banking Industry
8.3 Switzerland
8.4 UBS AG – Switzerland
8.4.1 Equities
8.4.2 Bonds
8.4.3 Gold
8.4.4 Equities
8.4.5 Fixed Income
8.4.6 Alternative and quantitative investments
8.4.7 Global real estate
8.4.8 Global fund solutions
8.4.9 Infrastructure
8.4.10 Fund services
8.5 Middle East
8.6 Hong Kong Shanghai Banking Corporation (HSBC) – Middle East
8.6.1 Liquidity
8.6.2 Structured and Alternative
8.6.3 Equity
8.7 South Africa
8.8 Deutsche Bank AG – South Africa
8.8.1 Global markets
8.8.2 Global debt markets

9 Private Banking in Asia-Pacific – Existing Conditions and Financial Product Offerings
9.1 The Growth in Asia-Pacific Wealth Management Market
9.2 Threats and Challenges in Asia-Pacific Growth
9.3 China
9.4 Hong Kong Shanghai Banking Corporation (HSBC) – China
9.4.1 Structured investment
9.4.2 Dual currency investment
9.5 Hong Kong
9.6 Credit Suisse Group – Hong Kong
9.6.1 Foreign exchange and commodities
9.6.2 Fixed income
9.6.3 Equities
9.6.4 Alternative investments
9.6.5 Fund products
9.6.6 Structured derivatives
9.6.7 Singapore
9.7 The Citi Private Bank – Singapore
9.7.1 Short-term assets
9.7.2 Liquid assets
9.7.3 Long-term assets

10 Risk Management and Changing Private Banking Relations
10.1 Risk Management: The Game Changer for Private Banking
10.2 Managing Risks and Transforming Operations
10.3 Information Technology: Shaping the Future of Private Banking

11 Appendix
11.1 Methodology
11.2 Contact Us
11.3 About Timetric
11.4 Disclaimer

List of Tables

Table 1: Behavior of UHNWIs in Various Market Conditions
Table 2: Financial Products Preference of HNW clientele

List of Figures

Figure 1: Impact of Downturn on Personal Net Worth by Region
Figure 2: Survey Results Showing the Categorizing Criteria Used by Wealth Managers in Classifying Their HNW Clientele
Figure 3: Comparison of Age Distribution of UHNWIs in Different Countries
Figure 4: Distribution of HNWIs Around the World (millions)
Figure 5: Comparison of Investments of Passion Amongst HNWIs from 2008-2010
Figure 6: Various Challenges and Concerns in Private Banking
Figure 7: Banking Preferences and Characteristics of HNWIs in Gulf Cooperation Council Countries
Figure 8: Breakdown of HNWIs’ Financial Asset Allocations, 2006-2012
Figure 9: Private Banking Product Range
Figure 10: Financial Product Preference of HNW Clientele
Figure 11: Characteristics that HNW Clientele seek in a Private Bank
Figure 12: Transfer of HNW Market Share in the US
Figure 13: Financial Information Sources of HNWIs (Based on Age)
Figure 14: Percentage Share of Wealthy US Investors Interested in using Technology to Interact with Financial Advisers or Investment Firms (by Age)
Figure 15: GDP Performances of Developed and Emerging Markets
Figure 16: Return on Investment in Emerging Markets by Sector
Figure 17: Emerging Markets’ Performance in Private Equity Deals
Figure 18: Global Average Projected Level Growth
Figure 19: 2007–2010 Distribution of HNWIs by Region (US$ Trillion)
Figure 20: Earlier Forecasts of HNWI Population Distribution by Region
Figure 21: Principal Areas of Risks, According to Private Banking Practitioners
Figure 22: Private Banking Standards for Client Segmentation

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