The coronavirus crisis is bringing old-fashioned hand-holding of UBS' wealthy clientele wealthy back into focus, over snazzy digital tools.
The Swiss bank’s two top private bankers signaled they are emphasizing traditional advice-giving over sleek digital tools in the wake of the coronavirus crisis, in comments to «PWM». The specialty publication spoke to both Iqbal Khan as well as Tom Naratil (pictured below), who have jointly helmed UBS' $2.6 trillion private bank since October.
The coronavirus pandemic put renewed emphasis on the need for intensive care of clients by private bankers. At the same time, big wealth managers hope to cash in on demand for private market opportunities among their rich clientele, the outlet noted.
Traditional Vs Futuristic
Ironically, this means more of a personal touch by bankers. Meanwhile, tools like Cornerstone, an automatic screener UBS built more than a decade ago that helps alert advisers when portfolios need rebalancing according to an agreed set of criteria, are proving less important than expected, «PWM» reported.
Both Khan and Naratil emphasize the prime opportunity to snap up clients who aren't being adequately catered to during the crisis. The thinking results in a traditional private banking model, as opposed to a futuristic, digital-centered one, the outlet reports. It doesn't elaborate on how wide-ranging travel restrictions could complicate this school of thought.
Awaiting «Digital» CEO
The comments from Khan and Naratil are among the first since the two took over together 10 months ago. Since then, the duo has reworked an ultra-rich unit and dispersed a product factory into UBS’ investment bank. The changes come several months ahead of an eagerly-awaited handover by CEO Sergio Ermotti.
In November, ex-ING boss Ralph Hamers, who has spoken vividly of digital channels, takes over the top spot. Hamers, who has no experience in is expected to give UBS’ slowed stagnant innovation efforts a kickstart.
