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PRIVATE BANKING IN EUROPE - Getting Clients & Keeping Them!

Author

Listed:
  • Anna Omarini

    (Università Luigi Bocconi - Milan - Italy)

  • Philip Molineux

    (SBARD, University of Wales Bangor)

Abstract

The paper examines the features of private banking business in Europe and focuses on the key roles of client segmentation, retention and acquisition. There has been substantial growth in private banking business over the last decade or so as commercial banks have targeted both the 'mass-affluent' and more upmarket high net worth individuals (HNWI's). The combined amount of investable assets at the disposal of these two groups amounts to around Euro 6 trillion and a wide range of banks, investment firms and other operators have focused on devising strategies aimed at grabbing a share of this potentially lucrative market. The private client wealth management industry in Europe remains relatively fragmented although a few major players have emerged and consolidation is an ongoing theme in the sector. Given the commercial opportunities afforded by this business area the increased complexity of clients needs continues to be a critical strategic issue for industry participants. This paper illustrates important themes relating to the wealth management service proposition and focuses on client segmentation, retention and acquisition strategies. Overall we find that private banks will have to adopt a more systematic approach to these areas and in particular also have to pay greater qualitative and quantitative attention to client satisfaction, trust and loyalty issues if their client retention and acquisition strategies are to be a success.

Suggested Citation

  • Anna Omarini & Philip Molineux, 2005. "PRIVATE BANKING IN EUROPE - Getting Clients & Keeping Them!," Finance 0509011, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpfi:0509011
    Note: Type of Document - pdf; pages: 26
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0509/0509011.pdf
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    References listed on IDEAS

    as
    1. Anna Omarini, 2015. "Retail Banking," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-1-137-39255-8, February.
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    Cited by:

    1. Omarini, Anna, 2017. "Private Banking: New Frontiers In Getting Customers And Keeping Them," MPRA Paper 85226, University Library of Munich, Germany.
    2. Imola Drigă & Dorina Niţă & Ioan Cucu, 2009. "Private Banking and Wealth Management Services Offered by Banks," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(1), pages 231-240.
    3. Philipp Nussbaumer & Inu Matter & Gian Reto à Porta & Gerhard Schwabe, 2012. "Designing for Cost Transparency in Investment Advisory Service Encounters," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(6), pages 347-361, December.

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    More about this item

    Keywords

    Private banking; wealth management; segmentation;
    All these keywords.

    JEL classification:

    • G - Financial Economics

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