資産管理業者が提供する資産家向け融資

Introduction

The report discusses why lending should form an important part of the wealth managers business before examining the three most suitable areas of lending for high net worths, including examples of wealth managers that are fulfilling this customer segments needs in each area. Finally, seven conclusions to help wealth managers decide how best to capitalize on this important segment are presented.

Scope of this report

• In-depth interviews were carried out with senior executives within wealth managers that currently make lending a key part of their business
• Extensive research on wealth managers, both in the US and Europe, to determine the extent to which lending products are marketed to high net worths

Research and analysis highlights

According to IRS data, in the US, individuals with more than USD600,000 in net worth accounted for 70% of debt and mortgage balances, compared to 20% of balances held by people with positive net worth of less than USD600,000.

Despite the fact that wealthy individuals borrow a disproportionate amount of money relative to their numbers and that they are less likely to default on their loans than less wealthy individuals, relatively few wealth managers are capitalizing on this opportunity.

Most retail banks that started with lending capability now have wealth management businesses, giving them two important points of initial contact with a prospective client. Wealth managers that dont offer to manage their clients liabilities are likely to lose clients to lending banks that can also manage their assets.

Key reasons to read this report

• Assesses a very lucrative and underserved business segment that you can exploit
• Identifies innovations in high net worth lending that can be adopted to fit your business model
• Presents the key conclusions to help you decide whether high net worth lending is right for you

CHAPTER 1 LENDING FOR THE WEALTHY

Introduction

A wealth management proposition should include credit products for four reasons

HNW loan products allow companies to target relatively few clients but make relatively big revenues

Wealthier individuals hold a disproportionate amount of Americas debt and mortgage obligations

And give wealth managers an excellent way to reach new customers

Where default is less likely than among mass market customers

And serious competition from wealth managers in this sector is still relatively sparse

Adam & Co. is one private bank that views lending as an integral part of its offering

Three areas of lending are particularly suitable for high net worth clients

Flexibility and vertical integration are the names of the game when it comes to offering loans to purchase assets such as houses, jets, yachts and art/collectibles

BOS Private Banking offers specialist mortgage services to account for lumpy salaries

HSBC Private Bank expanded into property search services to complement its high net worth mortgage business

Wachovias focus on jet financing has paid off since 9/11

UBS voted "Best Art Banking in the World"

Short-term lending products like credit cards and bridge loans cover gaps

High net worth credit cards are becoming more prevelant

Coutts launched its Coutts World super-premium card

Merrill Lynch Global Private Client (GPC) introduced a HNW credit card

Bridge loans provide flexibility for private clients

American banks are more explicit in offering bridge loans than their European counterparts

Merrill Lynchs Construction-To-Permanent lending program gives clients a smooth home-building financing option

UBS offers a short-term mortgage that clients can use as a bridge loan

Lending for liquidity, whether secured by investment portfolios or landholdings, allows clients to leverage their assets

Margin lending is a niche product, but is widely offered in some countries

Merrill has taken margin lending a step further

Unlocking illiquid assets

Coutts makes land liquid

Conclusions

Wealth managers risk losing asset management clients to banks that can meet their lending needs

Wealth managers that want to build a lending business must be prepared to stick with it

It is possible, but not desirable to outsource lending

There is no such thing as long-term product differentiation in high net worth lending

The key to successful takeup of lending products by high net worth clients is Relationship Manager training

Interest rates do matter

Dont forget the potential that SME lending offers

CHAPTER 2 APPENDIX

Research methodology

Definitions

Bridge Loan

Credit Card

Deferred Debit Card

A charge card that allows customers to defer the costs of purchases made on the card until the end of the payment cycle. At this point the cardholder has a fixed period during which to settle the bill in full.

High net worth (HNW)

Liquid assets

Margin Loan

Mass Market

Mortgage

A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower gives the lender a lien on the property as collateral for the loan.

Further Reading

Datamonitor Global Wealth Service SPP: Reports

Datamonitor Global Wealth Service SPP: Insight Reports

Datamonitor Wealth Management Competitor Tracker

Datamonitor Asia Pacific Wealth Management SPP: Reports

Datamonitor Savings & Investments SPP: Reports & Briefs

Asset Management and Funds

Offshore Financial Services

Retail Savings and Investments

Datamonitors Global Wealth Model

SPP writing team

List of Tables

Table 1: Countries that can be modeled using Datamonitors Global Wealth Model

List of Figures

Figure 1: High Net Worth individuals hold a significant portion of debt and mortgage balances in the US, 1998

Figure 2: UBSs Art Banking proposition, April 2005