Private banks see opportunity in aging society

By Reed Stevenson

GENEVA (Reuters) - With an aging global population seeking to get old in comfort, private banks are tapping into the growing needs of the wealthy who expect to live longer and leave money behind for their children.

"People are living much longer -- so the reality is wealth management is an attractive segment to be in," Chris Meares, who takes over as Chief Executive of HSBC Group Private Banking at the start of next month, said at the Reuters Wealth Management Summit.

"Because people are living longer they do need to make better choices," Meares said.

Around $41 trillion will be transferred to a new generation over the next five decades, beginning with Western economies, according to consultancy Capgemini.

The post-war baby boomer populations in North America and Europe are seeking to secure their wealth, while new fortunes are being made in Asia and other emerging areas. As a result, private banking is the fastest-growing segment of the financial services industry.

"There are a wealth of opportunities," said Arthur Vayloyan, head of Private Banking Investment Services and Products at Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz).

Last year, the number of individuals with more than $1 million in assets, excluding their primary residence, rose 8.5 percent and held $33.3 trillion in assets, according to Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and Capgemini's World Wealth Report.

The number of people with more than $30 million grew 10.2 percent, to 85,400 individuals.  Continued...