Private Banking and Wealth Management Models - No Magic Bullet by Timetric

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									Private Banking and Wealth
Management Models – ‘No Magic Bullet’
By Ian Orton                              Private Banking and Wealth Management Models – ‘No Magic Bullet’

© 2010 VRL Financial News Ltd

Published by VRL Financial News Ltd

Registered in the UK No. 02806152

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Private Banking and Wealth Management Models – ‘No Magic Bullet’

                                  Table of Contents

Figures                                                                                  iv

Executive Summary                                                                         v

Chapter 1: Sizing the Market                                                              1
  The global wealth management market                                                      2
  Definitional differences                                                                 3
  The geography of wealth                                                                  3
  Future growth                                                                            4
  Wealth management institutions                                                           4
  Conclusion                                                                               6

Chapter 2: Competition Issues                                                             7
  Low levels of competition                                                               7
  Monopolistic competition                                                                7
  Market penetration                                                                      8
  A global estimate                                                                       8
  Consolidation                                                                           9
  Market concentration in the UK                                                         10
  Market concentration in Switzerland                                                    10
  Margin and return on equity                                                            10
  Non-price competition                                                                  11
  Conclusion                                                                             11

Chapter 3: Size and Integrated Business Models                                          12
  Scale                                                                                  12
  Scope and synergy                                                                      12
  Quantitative evidence                                                                  13
  Scale effects                                                                          13
  Scope effects                                                                          14
  Cautionary tales                                                                       14
  Anecdotal evidence                                                                     14
  Conclusion                                                                             15

Chapter 4: Wealth Management Business Models                                            16
  Not mutually exclusive                                                                 16
  Exclusions                                                                             16
  Bank and Custodial Institutions                                                        17
   Private banks and private banking                                                     17
   Joint stock banks                                                                     18
   Trust banks                                                                           18
   Offshore private
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