The private banking industry moves 610,000 million Euros per annum, of which only 36% is in the hands of specialised financial service providers, according to a survey conducted by Accenture, IE Business School, and Morgan Stanley: â??Trends and strategies in the private banking sector in Spain II: The clientâ?.
The report was prepared in collaboration with 21 specialised financial services providers that hold 81% of private banking assets in Spain. The Spanish client has a sceptical and adventurous profile, follows markets closely and has global vision. Madrid and Catalonia account for 50% of the total assets managed by the sector.
While clientsâ?? choice of bank is based on prestige and solvency, banks have to systematize the relation with the client, establishing guidelines with regard to contact time and format in order to achieve greater commercial efficiency ratios.
On a regional level, 43.1% and 21.6% of the total assets handled by the private banking sector is from Madrid and Catalonia respectively. They are followed by the Basque Country, Andalusia and the Valencia region (7.7%, 6.5% y 6.2%, respectively). These ratios are similar when it comes to amounts of wealth managed for each client in the different regions: the average assets of families handled in Madrid and Catalonia is 1,000,000 Euros, followed by the Navarre region, the Valencia region, Andalusia and the Canary Islands (averaging between 600,000 and 800,000 Euros).
The private banking business model must be client centric and the bankâ??s revenue will be determined by the capacity to forecast how much advisory service it will be required to give. This basic theory must be born in mind in all four phases of the client life cycle: capture; planning and implementation; follow up; and transmission of assets. The management of individual objectives and a motivational retribution system are key for success, as is retaining talent and motivating managers. To round off, banks have to seek formulae that reduce costs while maintaining levels of personalised attention and a quality advisory service.
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