July turned out to be a dramatic month in the UK wealth management sector following the “de-banking” of a politician and the reasons that came to light as to why. Elsewhere, the rising stock market profile of Japan, the role of AI in wealth management, and the rise of interest rates, remained significant themes.
Since I last updated
readers at the start of July, it is fair to say that the
banking industry – not just in the UK – has been slammed by what
is sometimes called “cancel culture.” The term “de-banking”
threatens to become ubiquitous. Revelations that NatWest’s CEO
had breached client confidentiality by telling the BBC
that Nigel Farage had lost
his Coutts account because he had insufficient funds was bad
enough. (See a story here.)
But the saga became a bigger scandal when it turned out that the
NatWest group had compiled a dossier about the former UKIP
leader, claiming that his views on topics such as Brexit, global
warming, LGBTQ and other matters did not align with those of
the bank. The story dominated the mainstream news for a
fortnight.
This news service carried detailed reports, and we also delved
into unmatched analysis of what this all means for “politically
exposed persons” (PEPs). All along, we have sought to give a
balanced view of the situation, giving the banks in question
plenty of chance to explain what happened.
The editorial team will continue to track this story, as well as
intersecting topics such as central
bank digital currencies, privacy, disclosure of beneficial
ownership, KYC, AML controls, and much more. As well as
giving my own views on the situation, I also was able to take a
more positive tack by writing about the rising stock market
appeal of Japan,
and the status of “challenger
banks.”
My colleague Amanda Cheesley has continued to keep a close watch
on investment trends and, besides the Japanese
story, we also look at the topical issues of agriculture and
food security, as well as the asset allocation pressures wrought
by rising central bank interest rates.
Crossing the Atlantic, our US correspondent Charles Paikert has
chronicled the
M&A and business strategies of firms building through
acquisitions, pondering the impact of the macroeconomic
environment. And we are keeping an eye on the ongoing interest in
artificial intelligence and how that affects the wealth
management value chain.
During the past few weeks major banks have reported their
quarterly and first-half 2023 results. In most cases, the figures
are positive, reflecting the effect of higher interest rates on
margins. We focus laser-like on the wealth and private banking
aspects of these results.
I’d also like to draw readers’ attention to our guest feature
slots on the websites. We have been ramping up our collection of
expert views and contributors, and I think we are making a strong
impact in setting a high standard for commentary and analysis.
Into the final quarter of this year, we will look again at the
asset allocation strategies of firms that have had to adjust to a
changed interest rate environment. Another theme, under the
general title of “protecting the client,” examines how
private banks/advisors help HNW people avoid problems of physical
and cybersecurity; how they guard clients’ reputations by
managing their physical and online presence; how they
handle conditions such as cognitive decline in older family
members – touching on the intersection of health and wealth
management – and deal with the complexities caused by
divorce and separation. There’s plenty to ponder.
As we get deeper into the month of August, I am going to take a
break from the news for a spot of annual leave. A break from
the 24/7 news cycle is necessary. I hope all of you manage to do
the same and recharge your batteries.
Email me at [email protected]
