Growing CRITICAL
MASS
16
international private banking
What's NewS Issue 2 February 1996
In 1994, international private banking (IPB) was
designated as one of the bank's spearheads for growth.
Early last year, a strategie, structured approach to growing
these activities was launched. How effective has that
strategy been? IPB chief Thomas van Rijckevorsel explains
this and what ongoing expansion means for his
"O
organization worldwide. j
The structured approach to international
private banking was developed by Van
Rijckevorsel in conjunction with then-
consultant Heinz Zimmer, now head of
the bank's Swiss-based IPB operation. It
utilized the know-how of account
managers in the field to build a
prospective cliënt base among existing
food and agribusiness corporate clients.
Account managers around the world
responded enthusiastically because they
understood the aim was not only to bring
in private-banking clients, but also to
provide account managers themselves with
an additional product in their range.
PRODUCT DEVELOPMENT
A top quality range of private banking
products was seen as crucial to the success
of the new strategy. 'But we also wanted
that range to be backed with real know
how,' says Van Rijckevorsel. 'Our team
put in place a solid basic package and
since last year we have been continually
developing it. Private-banking clients often
have very individual needs and you have
to be able to accommodate their
investment aims and goals. So we have
been working hard to ensure our product
range is flexible and that our existing
distribution channels through the
international network can be utilized to
the full.'
REGIONAL TARGETS
However, utilizing existing contacts and
channels was only one aspect in the IPB
strategy. 'The other was to build critical
mass,' Van Rijckevorsel confirms. 'There
are a number of ways to do that. But
before I go into our expansion, let me first
say something about how we are
structured. We have opted for a regional
approach. That means, for example, that
some of our European and all Latin
American target markets are worked from
Zurich, which has private bankers located
in both Brazil and Argentina. The Far
Eastern market will be targeted from
Singapore and Hong Kong, while
Luxembourg will take care of specific
types of European clients, and Guernsey
will focus on Trust activities.'
The bank has recruited 'IPB heavy-
weights' to complete the senior
management team for the regional offices.
They also comprise the policy group in
which Heinz Zimmer and new man in
Singapore, Christopher Hayes (see box)
join Luxembourg's Jean-Pierre van
Keymeulen.
FOCUSSED
MARKETING
The reason why IPB is regionally
structured is because markets around the
world are very different. 'In Latin
America, for example, most customers are
looking for very safe investments,' Van
Rijckevorsel explains. 'In contrast, Asian
clients tend to take more risk. If we offer a
Taiwanese the kind of basic product -
perhaps a three-month, fixed interest
deposit - an Argentinian would be looking
for, he or she would immediately say:
What else have you got? So our product
package for specific markets has to be
developed where the expertise and know
how is located. Once you've done that,
you can see if they are "exportable" to
other markets.'
SHARING IT COMPETENCE
Within this regional structure,
Luxembourg also has an additional role to
play. Is has been designated as IPB's m
international IT centre. Luxembourg was™
selected as centre because it is a hub for
many private banking activities. 'Alvaro
Gonzalez and his team have built up real
expertise in working with the state-of-the-