Private bankers exploit power of networking

By Andrew Hurst

GENEVA (Reuters) - Private bankers are using their networks of contacts to help rich clients strike business deals in countries they might never have imagined investing in, as the industry goes increasingly global.

Wealth management has traditionally focused on advising rich people how to increase their wealth during their working lives, then protect it in their declining years as they prepare to pass on their possessions to their descendants.

But as the industry grows and clients become more demanding, private bankers are devising new services beyond simply managing a portfolio of assets on clients' behalf.

Private bankers attending the Reuters Wealth Summit in Geneva said the power of networking could be used to give them an extra edge in the competitive business of managing the money of the wealthy.

"A lot of our clients look at us to help them to be introduced to the right people," said Samir Raslan, who heads Citi Global Wealth Management in central Europe, Middle East and Africa.

And meeting the right people often means enabling wealthy clients to connect with business entrepreneurs in parts of the world they are not familiar with, rather than have the private bank manage the whole investment process.

"Our clients are very global, whether they are Asian, Middle Eastern or European," Raslan added. "They look not only for wealth management but for networking and help for them to meet other people like them."

Citigroup recently held a client event in China, which the bank said had opened the eyes of many to the possibilities of pursuing their business interests there.  Continued...