The Luxembourg private banking business world at risk:
In the actual economic context with the crisis recovery and the suspension of banking confidentiality since January 1, 2015, the Luxembourg private banks are facing external pressures. The clients who are more and more demanding, especially the non-resident clients, treat to leave. The result, a more intense competitive environment with the local private banks and the online banks attracting more clients. The off-shore private banks (Hong Kong, Singapore) are taking advantage from this situation to conquer the Ultra High Net Worth Investors (UHNWI).
Beyond the suspension of the banking confidentiality, the Luxembourg private banks are subjected to the new regulatory texts produced by American, European and national regulators.
In this way, they are facing a scissor effect that is impairing their operating ratio:
- On the one side, the operating expenses are rising due to the costly compliance with the new regulations, obligations and the demand for a better quality/price ratio.
- On the other side, the NBI is likely to be reduced under the combined pressure of a volume effect (losing clients and/or asset decrease) and a marge effect (a more demanding clients regarding the quality/price ratio of the services).
The Luxembourg private banking actual concerns:
In order to adapt to those new constraints, the Luxembourg private banks main concerns are:
- securing risks and compliance functions: optimise the production of regulations cost (FINREP, COREP, FATCA …), adapt the organisation to risks and compliance needs, fasten the compliance projects implementation (2003/48/CE Directive, 2013/36/EU Directive (CRD IV), FATCA, MiFID 2, AML & KYC, LAB), reinforce credit risk management, set up the operational risks cartography.
- improving commercial relationships: structure new services (investment advisory, family office), improve the reporting addressed to the clients, promote Luxembourg products (life insurance, SOPARFI, SICAR, PSF), develop intra-group synergies and with the network, provide a CRM tool to the bank, review the pricing, develop the mobile bank credit offer.
- optimising the financial management: optimise asset-liability management (rate, solvency, change), better drive the interest margin, reinforce the equity capital management, sharpen the management control, assess the client cost-effectiveness, redefine the expenses and revenues distribution between the private bank and asset management.
Thanks to its experience in strategy, project management and IT, Akeance Consulting has the necessary know-how to help you with your transformation projects.
Zoom on our 6 thematic offers:
Akeance Consulting can work with you on all your business issues. However, we have developed 6 thematic offers, two in each business issue that we identified as the most topical in the current context.
The 6 offers represent a non-exhaustive list of the missions that we are operating as our offer is flexible depending on your needs and issues.