Private banking enjoys further growth
Forecasts for the high-end consumer business, so-called private banking, and investment consulting are also positive. According to the World Wealth Report from Merrill Lynch and Capgemini that is published every year, net financial assets of wealthy private individuals reached a level of US$ 40.7 trillion worldwide in 2007. In Germany alone, some 826,000 wealthy private individuals were recorded – a further 3.5 % increase over the previous year. This is associated with a growing need for consulting services.
The private banking business segment has been a profiling field for the entire sector for many years, as looking after wealthy clients brings good growth opportunities.
Loss of confidence in banks
Set against the background of turbulent stock market activities and the banking crises of the last few months, the opportunities for providers of wealth management consulting services on the German market have again improved. We have observed that wealthy clients are increasingly withdrawing their investments from North America in light of the financial crisis and are now more interested in investing in local markets and comparably safe options. Yet the international financial crisis has also significantly shaken up the traditional role structure in the sector. Market research indicates that German investors have become considerably more critical of the banking and insurance industry since the financial crisis and are increasingly questioning the quality of the financial advice they receive.
Both of these developments favour growth opportunities for MLP. Around 40 % of the 730,000 MLP clients are today over 40 and therefore have greater investment consulting requirements. And the proportion of classic private banking clientele is also on the up in our client base. More and more academics and discerning clients are moving over to the private banking segment as their investments develop. And MLP’s wealth management competency is increasingly establishing itself on the market – our clients are recommending us to others.