Private banks branch out to serve other financial intermediaries

PRIVATE banks' core business undoubtedly centres around the servicing of wealthy clients. But a number of banks are branching out to offer a range of platform services to other financial intermediaries as well, such as independent asset managers, smaller banks and family offices.

UBS managing director Karin Oertli Kung, who is also head of the global financial intermediaries (FIM) business, says the FIM market will grow. But she also expects consolidation or a trend towards larger firms.

"We believe that growth will happen and we will capture a decent share . . . But you can't afford to run a very small company. There is a big trend globally towards larger set-ups which can afford to invest in a decent set-up to respond to regulatory requirements."