RE­VI­TAL­IS­ING BOE

Finweek English Edition - - Business strategy cars - BRUCE WHIT­FIELD

NED­BANK IS SEEK­ING to broaden the reach of its private bank la­bel by util­is­ing the BoE brand to ser­vice its high net worth clients. It means Ned­bank will lower the bar­ri­ers to en­try at its private bank and make it more ac­ces­si­ble, just as Absa and Stan­dard Bank have done over the past 18 months.

It’s now con­sid­er­ably eas­ier to gain ac­cess to so-called “private banks” that pro­vide a higher level of ser­vice to cus­tomers than the branch net­work does. How­ever, they’re light years away from the tra­di­tional Swiss model of private banks – de­signed to ser­vice the su­per wealthy. All you cur­rently need is in­come of R400 000/year, a de­gree and a whis­per of prom­ise to gain ac­cess to the ser­vices once pre­served for those on twice that salary.

While the pool of mid­dle-class wealth has grown, the num­ber of high net worth in­di­vid­u­als isn’t sig­nif­i­cant enough to jus­tify stand-alone private bank of­fer­ings be­yond those pro­vided to those at the up­per end of the wealth spec­trum. But Ned­bank will be of­fer­ing a top-end ser­vice to around 2 000 clients through its BoE brand.

Since the demise of BoE as a listed en­tity, the brand has been re­tained to ser­vice the group’s top-end clients in the wealth man­age­ment sphere.

BoE MD Vince Boulle says the new ser­vice is by in­vi­ta­tion only and is aimed at clients with in­vestible as­sets of around R5m. Ned­bank be­lieves up to 12 000 clients fit its profile in the private client space.

Clients who have ei­ther bor­row­ings or in­vest­ments of R5m with the new en­tity won’t pay trans­ac­tion fees on their re­tail bank­ing.

If you’re se­ri­ously rich/If you’re se­ri­ous about money. Vince Boulle

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