«Despite any sort of trade war, clients from China still want to learn from Western companies known in their country like Starbucks, Apple and other entities,» Rahul Malhotra, Managing Director at J.P. Morgan Private Bank, says in an interview with finews.asia.
Word goes that J.P. Morgan Private Bank is only taking clients with 25 million dollars or more. True?
Families and individuals with at least $10 million in investable assets – or $25 million in net worth – generally make the best use of the service we offer, as they have a certain level of complexity in their financial affairs. But there is no hard and fast line. Our objective is to grow relationships with clients who have complex wealth issues across generations.
Why?
People in that wealth bracket tend to be multi-jurisdictional and often have «enterprise wealth,» or wealth associated with a business. Often those businesses need to be grown, sold, or passed on to the next generation.
«Besides China, I think that Indonesia is a big opportunity»
They have family governance issues associated with that business, and oftentimes a concentrated position that results from the sale of a business to a public company in exchange for stock.
How has the industry emerged over the last twenty years?
I think the wealth management industry twenty years ago was perceived to be more oriented towards concierge types of services. But as clients, markets and solutions have evolved, the dialogue and the scope of our work have evolved. Some of this was reinforced through events like the global financial crisis. During that time, our industry saw much more granular focus from clients and a greater desire to understand what they were invested in, how and why.
Where are your opportunities to grow in the wealth management industry?
Besides China, I think that Indonesia is a big opportunity. It’s a vast country with a population of roughly 260 million people. There is more stability now after the incumbent gets his second term, the population is young and the demographics stack up well. We see a lot of growth.
«Today clients tend to focus on 3 to 4 private banks»
The other area is India with the growth you see again in the country. So you can see, our whole strategy is not only in China. For us, the world is a lot more global.
Consolidation in wealth management is a big issue in Asia. What is the role of J.P. Morgan in this business?
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