Private banking is falling to demographic change. The global economy may be minting millionaires at an unprecedented rate, but most fall into the “working rich” category. Those millionaires are more mindful about spending and investing than fiction would suggest. And that means that the stakes are ever-higher for those banks offering ultra-premium transaction and advisory services. Some institutions are turning away single-digit millionaires and focusing just on their largest accounts. Other banks are quietly abandoning the business. We suspect the true winners in this upheaval will be selected fintech players, including robo-advisors, as well as boutique wealth-management firms. In the internet era, transparency may be one of the few benefits to which millionaires, single-digit or otherwise, still respond. ■
Learn more at The Guardian.
© 2016 Cranganore Inc. All rights reserved. Image: Babar760 at Can Stock Photo Inc.