Private bankers should act as personal CFOs

Today’s modern private banks should offer their clients help and advice around their wealth and act as their personal chief financial officers by helping clients resolve their complex financial problems, NAB Private said.

Private banking should be focused on the individuals, their families and aspirations rather than providing a wealth strategy, according to NAB Private’s customer executive, Jason Murray.

Data from Investment Trends showed an estimated number of high net worth (HNW) individuals in Australia at 435,000, defined as those who had over $1 million in investable assets.

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“Our high net worth customers are focused on two things: preserving their wealth and building income,” Murray said.

According to Investment Trends, 36 per cent quoted building a sustainable income stream as one of their primary investment goals, while another 34 per cent said it was achieving a balance of capital growth and managing risk.

Additionally, wealthy Australians remained chronically under-diversified with around 95 per cent of their assets being invested in cash, Australian equities and Australian properties, Murray said.

NAB set up a global investment desk only for its clients, where they could choose whether they needed an advice or whether they wanted to become more proactive with their money.

“We are not about selling, we are not about selling products – it’s about customers asking for help with their wealth. If they wanted advice they get advice,” Murray said.

According to Murray, in the next 10 to 20 years, Australia is going to see the single biggest generational wealth transfer and businesses changing hands, therefore interest around wealth and asset management that existed now would increase going forward.

“Private banking, at its heart, is not just about banking,” Murray said.

“It’s not about a HNWI’s loan structure, deposit rate or even wealth strategy. It’s actually about the individual, their family and their aspirations. Facilitating that journey is what private banking is really about.”

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Just one - any Journo (not another reporter) please see what they (the Banks) are doing here? Reporting must pay better than being a Journo.

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