In such unstable times, European private banking has shown itself to be a strong model. Despite many challenges such as geopolitical instabilities, evolving regulations and COVID-19 economical consequences, European private banks have managed to adjust and maintain the trust of their clientele.
The key factor of this resistance is the ability of private banks to offer a wider range of services beyond the usual investment management strategies. Providing clients with expert advice in areas such as tax planning, wealth transfer and asset management is among those services, as well as the ability to manage their assets in a more efficient manner. By offering a different approach, private banks can strengthen their relationships with their clients and better answer their needs.
Another trend in European private banking is the growing use of technology to improve the relationship with their clients. This includes offering digital solutions and account management tools. These banks are also investing heavily in data analytics to provide accurate and better investment advice. However, it’s important to note that technology should not be considered the solution of every need. It’s only in place to help in the financial advice, not for replacing the human touch that clients value in their private banking relationships.
Private banks are also paying closer attention to the changing interests of their clients. Among the younger generation, for example, there is greater interest in impact investing and sustainable finance, and private banks are constantly adapting their offerings to meet these demands. Similarly, there is growing interest in alternative investments such as private equity and real estate.
Overall, the strength of private banking in Europe can be attributed to its flexibility to changing circumstances while maintaining a sharp focus on its relationships with the clients. By offering a variety of services, embracing technology, and responding to changing client preferences, private banks are in an excellent position for long-term success.