September 18, 2009

Even as the global economic downturn continues to ease, there will be further consolidation in the private banking industry amid cost-cutting efforts and falling revenues, says Pierre-Francois Baer, SG Private Banking’s CEO for Singapore & South Asia.Indeed, the model of private banking is set to change following tremendous growth in the industry over the past five years, which has led many banks to pursue the brokerage sales model to drive revenue growth.

In Baer’s view, the industry needs to “take a step back” to rethink its business strategy as banks grow and consolidate their client base. “It’s not just the clients that decide which banks they choose,” says Baer. “But it’s also a time where the banks have to decide which clients they want to have as clients.”