Strategic acquisitions stimulate competition in regional US markets.
While U.S. regional banks may not match the pedigree or global reach of private banking titans like JP Morgan and Citi, an ongoing consolidation process is expected to make regional banks more competitive. Last year alone, PNC Financial acquired BBVA USA, including the US wealth management business of Spanish bank, BBVA Compass; SVB Financial Group, the parent company of Silicon Valley Bank, bought Boston Private; and Canadian giant Scotiabank has announced that it is seeking an acquisition in the United States to strengthen its wealth management activities.
Fifth Third Avenue Private Bank
Digitization and sustainable investing are two of the main global trends among private banks in 2021; and Fifth Third has helped lead the charge for digitization among U.S. regions, as evidenced by its transformed private banking client onboarding process.
By coordinating and integrating an operation that included the introduction of an electronic signature offering, a cost-based reporting service, an automated customer account transfer service and, more recently, a Delta Data’s process that simplifies the transfer of assets between bank trusts and other offerings, private banking has reduced customer onboarding from weeks to days and sometimes even within 24 hours.
The institution, with a history dating back 160 years, provides tailored wealth management offerings to HNWIs in the Midwest and Mid-Atlantic regions. There was no reversal in 2020, with the private bank’s total assets under management (AUM) reaching $ 54 billion.
Private Bank Key
Key Private Bank, a provider of wealth management and advisory solutions for HNWIs and High net worth individuals (UHNWIs), has become a major driver of commission income at KeyBank of Ohio. Key Private had $ 47.7 billion in assets under management as of June 30, 2021, up sharply from $ 39.7 billion a year earlier.
The private bank offers wealth advisory, investment management, trust administration, personalized credit and family office services, combining market knowledge of local advisers with a national team of wealth and investment strategists. investment to provide personalized advice to clients. It operates in 15 US states.
Parent KeyCorp dates back 190 years to Albany, New York; but most know it best today as a Midwestern institution headquartered in Cleveland. However, Key Private has recently expanded its operations to locations closer to its 19th century origins, such as New England.
âNew England is a critical market for Key Private Bank, and we continue to hire and invest in talent,â said Tony DiSotto, Key Private Bank’s New England market leader. This move is consistent with the fact that other major US banks are expanding their private banking workforce to take advantage of the favorable macroeconomic climate, supported by a booming stock market, stimulus measures and other factors.
Private field point
Fieldpoint Private is one of the nation’s fastest growing wealth advisory and private banking boutiques. Founded by 31 partners in Connecticut in 2008 with “a philosophy of exclusive membership and customer focus,” it has since expanded to New York, Georgia and Florida. It recently surpassed $ 5 billion in assets under management.
Speaking to âhighly successful individuals, families, businesses and institutions,â Fieldpoint offers advice on wealth transfer, tax planning, aggregation and performance reporting, risk management, investment strategies. goal-based investment, investment selection, personalized banking services, personalized credit solutions, bespoke custody and trusted solutions, as well as concierge services.
In August, Fieldpoint announced that it recorded 21% annual growth in loans, 24% in bank deposits and 25% in wealth management assets, and for the first time surpassed $ 1 billion in balance sheet assets.
Synovus Bank has been a family business since 1947 and is dedicated to serving UHNWIs and families across the United States, especially multigenerational families. The unit has 40 employees, some $ 10 billion in assets under administration and an award-winning specialty in philanthropic services.
Although Georgia-based Synovus is a regional institution with 285 branches in Georgia, Alabama, South Carolina, Florida and Tennessee, its family office is more outward-looking, offering management services. investment, wealth transfer planning, family business management and trust services to families in North and South America, Europe and the Middle East.
With a strong contribution from the family office unit, Bank Synovus’ fiduciary and asset management fees increased by $ 6.6 million (22%) for the six-month period ended June 30, 2021. This increase is due to the growth in total assets under management, which increased from 28% on June 30, 2020 to $ 21.23 billion as of June 30, 2021.
PNC Private Bank
PNC Financial’s purchase of BBVA USA Bancshares in June transformed PNC Bank into a rising star in the regional private banking scene.
The bank recently merged its heritage activities PNC and BBVA USA and renamed it PNC Private Bank. Private banking is still part of PNC’s asset management division and focuses on wealthy emerging, established and multigenerational segments.
The high net worth client segment is increasingly attracting many US banks. “It’s an attractive industry,” Carole Brown, who heads PNC’s asset management segment, told Bloomberg in an interview in August, noting that her company offers the highest returns of the three reportable segments of PNC, even if it is the smallest. “The opportunity that I think we are all trying to seize is this multibillion dollar transfer of wealth that is happening and will continue to happen over the next decade.”
As noted, many US banks have recently expanded their private banking units, which creates their own challenges. âThe biggest challenge I see in 2022 is talent,â says Don Heberle, who heads PNC Private Bank. âThis is one of the most competitive environments I have experienced, in terms of hiring new talent and developing our current employees. “
City National Bank’s assets under management have skyrocketed in recent times, thanks to the expansion of its private banking business. It’s no surprise, then, that the Los Angeles-based bank is repossessing the role it played two years ago as Global Finance’s best private bank in the West.
A subsidiary of Canadian banking giant Royal Bank of Canada, City National provides banking, trust and investment services through its 75 offices, including 19 full-service regional centers, in Southern California; the San Francisco Bay Area; Nevada; New York City; Nashville; Atlanta; Washington DC; Minneapolis and Miami.
In May, the bank hired a new cross-border banking team in New York. In June, City National announced the hiring of a new team of private bankers to serve the greater Philadelphia area, specializing “in the unique financial needs and challenges of high net worth clients.” This follows the bank’s appointment of Abel MontaÃ±ez as head of its private banking division.
Like most private banks serving UHNWIs, City National’s services are broad and highly personalized. The Philadelphia team, for example, offers advice and services in investment management, personalized credit, deposit and cash management, wealth planning and trust services to business owners, entrepreneurs, business executives, real estate professionals, owners of professional sports teams, family offices, family foundations and major and funds of hedge funds and private equity.
City National is forecasting further growth in its wealth segment in 2022, as many expect interest rates to rise. âUS wealth management is well positioned to benefit from rising interest rates, given the asset sensitive nature of City National Bank’s balance sheet,â said Dave McKay, CEO of RBC, during ‘a second quarter earnings conference call. City National’s assets under management stood at $ 70.3 billion as of July 31, 2021, up from $ 58.6 billion a year earlier.