WEALTH MANAGEMENT & PRIVATE BANKING
Purpose in Prosperity Naushid Mithani Head of GSAC West and Private Bank Head, UAE at Standard Chartered Bank, notes that while the digitalisation of wealth management is gathering pace, the availability of the human touch remains a preferred option, and that today’s HNWIs are becoming more demanding, more involved, and seek purpose in their investments
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he demographics and demand exist, but are all the services in place to support a mature private banking and wealth management sector in the region? Over the last few years, we have seen regional banks invest significantly in creating a robust wealth management offering, in response to customer needs. We are increasingly seeing a more sophisticated wealth management approach taken by players in the region; one that is built on relationships, digital solutions and unique product offerings. There is also a growing appetite in the market to go beyond conventional asset classes, that is seeing a rapid interest in exploring new investments around ESG, venture capital, private equity and specific tailored products – with a strong desire to explore diverse forms of investment. At Standard Chartered, our investment philosophy hinges on the art and science of human behaviour, supported by high-end digital offerings. One of the
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Naushid Mithani, Head of GSAC West and Private Bank Head, UAE
personalised advisory services we offer our private banking clients entails running different scenarios to give a historical statistical perspective of asset class returns under each of these scenarios,
Banking and Finance news in the MEA market
offering customers the right information to ensure the best decision is made for their portfolio.
Have events in the past two years affected the demand for optionality in client’s portfolios? The Covid-19 pandemic has required changes in behaviour from both clients and their advisors and placed greater emphasis on digital solutions enabling remote engagement rather than face to face interactions. Looking specifically in the Middle East, a change in the trajectory of the wealth management model has been evident for quite some time. According to a study1 conducted by EY, 25 per cent of wealth management clients in the region receive financial advice through mobile applications. Similarly, 53 per cent of clients placed more importance on wealth managers that are digitally savvy, signifying an increased prominence on technological ability. It is becoming clearer that firms that can provide an automated platform with periodic access to a human advisor is the most preferred scenario across a range of investor profiles, combining the best of both worlds for clients. The adoption rate for digital wealth management solutions has increased dramatically. Standard Chartered launched a mobile fixed income platform in selected African markets at the beginning of 2020. By July, up to 50% of fixed income transactions were completed using the mobile app. The diversification of digital product offerings in investments has given clients the option to choose where to invest based on market volatility. However, customers still care for an
