Thirdly, and perhaps most importantly, private banks are increasingly focused on achieving greater and more diversified mind share in an effort to be a client’s «trusted advisor» and to have a wider range of revenue lines to withstand increasing market volatility, now often hitting specific sectors in the region directly due to the United State's foreign trade policy actions.
Greater focus applied by relationship managers to diversify their efforts beyond a small universe of asset classes or markets could not only strengthen resilience but also obtain greater market share directly in the form of client assets.
Win-Win Environment
In its nascency, DAC businesses are experiencing a decent start. Regional private banking arms at UBS and BNP Paribas, for example, reportedly posted double-digit year-on-year growth in the first quarter of 2019 with a strong focus on FX, albeit from a low base.
In the long run, the growth of DAC business is a potentially welcome development that could create a win-win environment for clients and banks. Clients are likely to be beneficiaries of improved quality from sophisticated and experienced specialists. Banks could enhance sustainability through stronger margins and volumes, risk management and, most importantly, relationships.
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