The European changing environment has challenged the Private Banking industry to its foundation. Hence, a weak global economy, strong inflation regulation and low interest rate policy set by the ECB, threaten to lower profit over the next three years causing a graduate margin erosion in Private Banking. In that context, Private Banks new business model will have to be laid down by 2020.
Imagining the financial sector of tomorrow, it is both impossible and essential, but standing still is clearly not an option. Private Banks need to choose a clear strategy in order to adapt their business model.
Some questions need to be answered: Who will be the customers in 2020? What are their expectations? Does the private banker role need to be redefined to satisfy them? Is the role changing enough? Does the organization need to be adapted too? Do new services need to be developed and launched? Let’s find out.