A global pandemic has put the kibosh on glitzy events and leisurely meals where private bankers woo potential clients. finews.asia looks at how wealth managers are schmoozing in times of corona.
Little to no travel, no long lunches, no sporting or cultural events designed to press the flesh, no golf games with big-ticket clients, nor even deep conversations while strolling through in-house art collections – life has changed dramatically for private bankers. They are faced with dramatically reinventing their «personal touch» services in a world where up-close and personal is banned for the foreseeable future.
With most of the industry now in its seventh week of sheltering at home, how are private bankers schmoozing in the pandemic? For most, the crisis has sped up an intimacy that was long sought by bankers, but often only granted reluctantly and slowly by the wealthy – the formality of meetings is out.
Sudden Intimacy
«Eight weeks ago, would I have thought of video-conferencing one of our larger clients spontaneously in their home? Probably not,» Tiedemann Constantia CEO Robert Weeber (pictured below) told finews.asia. The pandemic is leveling what is socially acceptable in dealing with the wealthy and super-rich.
Almost everything has moved to video-conferencing, either via Zoom, proprietary video tools, or encrypted messaging and video apps – kids or a cat/dog darting through the background included.
«There is a much stronger human aspect to how we interact: you'd typically start by asking 'how are you, how is your family, what are your circumstances?',» said Laurence Mandrile-Aguirre, who runs Citi Private Bank in Switzerland and Monaco. «The nature of engagement has become more intimate due to the circumstances.»
Video calls will never be as good as an in-person meeting, but enables seeing a person on screen and interpreting body in interaction, she notes.
2019 Pipelines Dwindling
The initial surge of intimacy notwithstanding, wealth managers have until now benefited from when they could still aggressively travel – many clients onboarded thus far during the crisis were last year's prospects. What happens now that the pipeline is trickling away, or for banks just heading for the starting line, like Quintet, which clinched a Swiss banking license last week?
The Luxembourg wealth manager is relying on personal connections and technology – and hoping the end is in sight, CEO Emmanuel Fievet told finews.asia on Monday. However, maintaining trust over digital channels is far easier than building it up, as a rival private banker notes.
Crisis as Decision-Maker
Wealth managers are now scrambling to replenish the pipeline and ensure they can keep new money flowing in. Citi’s Mandrile-Aguirre (pictured below) said the U.S. bank’s marketing teams are looking at ways to replicate client events.
«We felt March and April were too early because clients are still adjusting to the situation, but for May and June clients have more time to engage, have tested the technology, might have the next generation of their family at home and would be receptive.»
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