Future of Private Banking – financial advisory wealth management, funds, investment. Banking speaker

so what’s the future private banking well I’ve worked with a lot of private banks in the world and also lecture to a lot of ultra high net worth individuals I mean people have got maybe 800 million euros and the bank or more and the lessons are clear the trends are clear yes private banking has always been about wealth management or rather about wealth protection of wealth enhancement but there’s a big crash and it’s increasingly being raised by high net worth individuals and it’s this what is it all for you see often I talk to high-net-worth family and that they tell me the same story now they tell me and well they’re worried about the children you see the wealth was originally for the children in a way but actually they’re worried that the world they’ve created is actually wrecking their children they’ve no wide that they don’t want to put any more money into the into their son’s business ventures because the first three collapsed and they don’t think he’s ever learnt the real value of money and they’re worried about his future actually they’re also worried about the grandchildren because they seemed the same problems being repeated they were they worried about character issues they’re worried about the kind of life choices I’m making so you’ve got these ultra high net worth individuals many of them with deep concerns which are also compounded by another worry which is what has the effect been on their families the children of the lifestyle that they’ve had to follow in order to make the world you know they’ve not been around at critical times they weren’t at the school play they didn’t watch the children playing football there that they were out the country they just weren’t available and then mum wasn’t available dad wasn’t available because actually they were sorting out their own conflicts and then the marriage bill to bits and now there’s a stepmother stepdad was new children by another relationship life can get very complicated when relationships have been under pressure for a very long time and ultra high net worth individuals often have been under huge unimaginable pressures for a very long time running a huge business preparing it to be floated acquiring other companies and so on this irresistible force for economic growth for extra wealth generation to achieve more to make it all happen often as a terrible price in terms of personal relationships now okay maybe I’m exaggerating to make the point but it raises a question in many of the high net worth families I’ve talked to about what it’s all for because here’s a family and let’s say this torment Susan and their private banker tells them that every year that getting wealthier that’s true they are despite the fact that they bought three new homes and a yacht lekar and even gambled a big hundred have gambled a bit and drank some more and spend a whole other than holidays and goodness there’s work they’re not managing to burn through their income as rapidly than making new world new wealth in the company may be that they found it and new world thanks to the advisors that they’ve got in terms of wealth management so and the other problem is is that many of the decisions they’re making to spend money are actually creating more money that’s compounding their problems so they spend money on another another big home in an area which is up-and-coming they do it up it’s already worth twice what it was when they first bought it 15 years ago and so on so it’s a challenge so what is it for they get well through every year they’re not able to keep pace with the accumulation of our wealth and that private bankers are making their problems worse by making them even Roth here they don’t want to give any more particularly to that children at the moment they are worried about too much going down to the grandchildren they’ve put some in trust for the answer is philanthropy because what else can they spend it on they running out of things are spending down for themselves me I can’t spend any more on their family they’ve given a lavish parties for their friends and whatever it has to be I’m make you different somewhere beneath something back connecting with passions to make a difference in the world and that’s why advice on philanthropy has become a number one growth in private banking and every smart private banker is becoming an expert on altruism on connecting with the passions of his his or her clients understanding where they’re at and helping them to set up their own foundations to do something quite amazing that they and their children and their grandchildren will be proud of and yet it’s an area that many private bankers have not been particularly comfortable in because it’s so well it’s not quite the same skills they’ve had when they’re setting up trusts or doing this or doing that in terms of traditional wealth management and because of that we’ve seen new edges of set up outside of private banking which are competing with the turret of private bankers by offering specialist philanthropic advice for a fee and with management charges and so on and these people are getting very close to the family offices of very large plans very high net worth clients so what’s the space it’s an interesting time and it’s an encouraging time if you’re interested as I am in that in in what these kinds of foundations can do in terms of improving the lots of humankind then you can expect to see a huge amount of new wealth over the next 10 to 15 years channeled into non-government organizations into voluntary sector groups are looking to relieve poverty sickness of distress in many parts of the world and that has to be a good thing

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