Tradition and art: set to be thrown to the wayside?
Private bankers love to tell me that their sector is more of an art than a science. However, the traditional methods of wealth management are seemingly on the way out.
As discussed at length in this very magazine over the last year, Covid-19 has changed the sector. The face-to-face relationship strategy is no longer the only way to do things. Putting on your best suit and taking a train to the big city to discuss your wealth can now be done from the comfort of your own drawing room in jeans.
There are other changes incoming.
In this issue, we cover the way inclusion can bring better returns in the market.
LGBT Great - in partnership with Equality Group and the Bisi Alimi Foundation – has highlighted the opportunities for firms in appealing to a $23trn market through effective inclusion. This alongside younger generations gaining wealth is set to change the industry. However, it will also bring high returns. There is no downside to this.
Similarly, firms are getting out of “lottery ticket investments”. Not worth the hassle and returns are not being seen. The days of getting lucky and being on the ground floor of Google are over. People need their return now.
Looking at wealth and wellbeing, in the preamble for the Knight Frank Wealth Report 2020, Rory Penn, head of private office at Knight Frank, wrote excitedly of the approaching decade – the roaring twenties - and the implications of such for UHNWIs around the world. Through no fault of his own, the report’s predictions were, let’s say, a little off.
Consumers and clients are increasingly looking for brands and companies with values that align with their own. This applies to private banking as well. This means only one thing: sustainability.
All of this covered in the issue (and more) and see you next month when the industry has likely made even more seismic changes.
Patrick Brusnahan, Editor