Boutique houses seen as growth model for China
China is the 'last frontier' in the wealth management world but it is set to consolidate in the next two or three years, according to senior executives at Bank Sarasin-Rabo (Asia).
Demand for professional people is unlikely to be matched by supply in the short term, according to Hong Kong-based Kenneth Sit Yiu-sun, chief executive of the bank.
Fidelis Goetz, head of the international division at the bank, said: 'We see a lot of new players entering the market.
'[However], in the next two to three years, we think that there will be a consolidation in the market.
'There are large houses that try to be everything to everybody. And there is the boutique model with a dedicated client base.
'We are clearly a dedicated boutique private bank. We think this is the right way to go and this is where the market is heading.'
Mr Sit said: 'We think that the niche players will grow at the expense of the marginal players.'
Bank Sarasin takes a holistic approach towards its business and emphasises sustainability in its approach, which is now a growing trend in the wealth management industry.
The bank sources products from different providers to meet the needs of its clients and also has its own set of funds invested in environmentally conscious and socially responsible businesses worldwide.
Mr Goetz said: 'Companies that are managed on a sustainable basis usually have a positive spin on their share prices. We think we can make a difference here.'
Private banking is a people-centred business that is based on the faith and trust established between banker and client.
'Private bankers are among the few people you surround yourself with, in addition to your lawyer, your priest and your personal physician. [A private banker] is one of the few people you trust,' he said.
Mr Goetz joined the 166-year-old Swiss private bank at the start of this year and he told colleagues that his sole aim was for it to be the most client-focused private bank.
'It is all about asking the right questions,' he said.
'We need to listen. We need to ask what clients want. The answers come from the clients who usually give the solutions which we execute.
'Too often we assume too much.'
This ability to listen will stand private bankers in good stead as the creation of new wealth gathers momentum.
