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By Coralie JEANTY, Consultant, Initio
The European changing environment has challenged the Private Banking industry to its foundation. Hence, a weak global economy, strong inflation regulation and low interest rate policy set by the ECB, threaten to lower profit over the next three years(1) causing a graduate margin erosion in Private Banking.(2) In that context, Private Banks new business model will have to be laid down by 2020.
Imagining the financial sector of tomorrow, it is both impossible and essential, but standing still is clearly not an option. Private Banks need to choose a clear strategy in order to adapt their business model. Some questions need to be answered: Who will be the customers in 2020? What are their expectations? Does the...
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