Private bankers on call for wealthiest clientele

Wealthy migrants and people selling businesses are driving demand for private banking services, the country’s banks say.

The main banks all offer private bank services to their wealthiest clients. That means they have a banker on call when they need one, and sometimes receive access to exclusive investment opportunities or events.

Private bankers come to a client’s home when required.

Most of the banks require clients to have personal income of at least $250,000 a year to qualify, or significant sums to invest or borrow.

BNZ is believed to deal with clients with $500,000 to invest – although it would not confirm that publicly.

ANZ and ASB like private wealth clients to have $1 million and Westpac says its services are most valuable to those with $2m.

Donna Nicolof, BNZ’S head of wealth and private bank, said demand for private banking was increasing nationwide.

BNZ’S wealth and private bank team had almost tripled the size of its funds under management in three years from $1.5 billion to $4.3b.

‘‘For private bank alone, our funds under advice have grown 30 per cent in the last two years to June 30, 2017 and 13 per cent in the last 12 months to June 30, 2017,’’ she said.

‘‘The growth is driven by people with increased wealth predominantly from business sales, New Zealanders returning home and new migrants.’’

She said the demand was likely to continue as the population aged and more business owners wanted to sell and retire.

BNZ had launched a Family Office due to the demand for help with succession planning and the sale of businesses for many millions of dollars.

‘‘We’re ensuring they have structures in place to not only achieve their lifestyle goals in retirement, but to leave a positive legacy, educate and look after their children and future generations to protect and grow their wealth.’’

ASB said there was a particularly strong increase in demand for private bank services in Queenstown and Wanaka.

A spokeswoman said that was driven by wealthy international customers keen to move to New Zealand, and settling in Queenstown, as well as baby boomers returning to New Zealand after long periods overseas.

ASB opened a Queenstown office about eight years ago and now has two full teams of private bankers for the Central Otago region.