SEI, a leading global provider of asset management, investment processing and investment operations solutions, further developed their view that private banks need to focus their limited resources on areas of market differentiation, allowing them to keep pace with a highly competitive wealth management market. This view was delivered in a presentation entitled “Bolstering your reputation as a competent asset manager vs. allocator” to the Private Banking Middle East Conference in Dubai last week.
In the presentation, SEI’s Jahangir Aka, Director of the Middle East Region, discussed the opportunities and challenges faced by private banks in the region as they look to offer products and solutions beyond the Middle East and helped key decision makers to understand the different options available to them.
“We believe the Middle East wealth market dynamics and an emerging wealthy end investor segment are presenting private banks with significant opportunities. However, in order to take advantage of these opportunities, banks will need to transform their business model,” said Mr. Aka. “A key element of the transformation is the development of a business model that is less product-driven and more advice-oriented, leveraging on their strong regional presence.”
Mr. Aka identified several factors that are integral to building a successful private banking business, including:
• Defining a clear value proposition, which differentiates the bank from its competitors
• Aligning limited corporate resources, be it people or capital, on delivering the value proposition
• Identifying areas that are non-core, and seeking more efficient alternatives
• Focusing on the recruitment and training of talent. The war for talent has just begun.
Mr. Aka’s speech was given as part of SEI’s thought leadership program to voice their opinions on a range of topics affecting the private banking industry. This is particularly illustrated in a number of research studies undertaken by SEI, with the most recent focused on wealth managers identifying that banks are rapidly moving towards open architecture investment solutions as a means of delivering on a wealth advice-based positioning. To discuss SEI’s views further, or to obtain more information on recent research, please visit SEI’s website at www.seic.com/pwi.
The Private Banking Middle East annual Conference was held November 19-21 at The Shangri-La Hotel, Dubai.
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About SEI
SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of the period ending September 30, 2006, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $344.9 billion in mutual fund and pooled assets and manages $168.9 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from more than 20 offices in over a dozen countries. For more information, visit www.seic.com.
