These are challenging times. Client trust levels are at an all time low and Private Bankers are faced with a market environment that is unparalleled in modern history. Previously highly profitable hedge funds and other exotic products have plummeted in value and in some cases disappeared altogether! The instinct reaction from most clients has been to withdraw and lick their wounds. Risk aversion is their primary/only strategy moving forward. Some discretionary clients have gone on the offensive and pursued their bankers who they feel have failed them by exposing them to unacceptable risks. Risks that were either kept hidden from them or were taken without their express permission. Many bought "AAA" investments that were so opaque or complex that even the rating agencies were unable to assess them accurately. Is it any wonder that the clients are looking at their bankers and questioning their expertise and added value? In a long-term bull market it is easy to build relationships and delight clients because it's easy to make money. In 2013, the biggest challenges for the Private Banker continue to be to retain clients and rebuild trust and confidence in their capability.
Given a colleague acting as a client, the Private Banker will be able to conduct a series of client interactions, whether by written correspondence, the phone or face to face, and gain commitment to a positive course of action that meets required criteria within an appropriate time frame.