Adapt or die-out in a new world of private banking

I appreciate Michael's take on the need for change in Private Banking. however the technological innovation, cost cutting, outsourcing are bandage solutions. the real solution is to build non-correlated, real business exposures in a product manner which offers the experience of co owning a business with a down side protection and upside PE like returns and to top it all create secondary market for interim liquidity. The time has come to look cross borders Private Equity deals and incorporate them in to " Principal Guaranteed Private Equity Funds across various sectors and geographies. The world we live in today is no longer is constrained by the geographic borders of economic barriers. The Private Banking Clients will find home in banks who are most capable to address their clients needs of non correlated higher returns and proactively manage the risk to loose capital. The need for product diversification and improving the knowledge of the RM's is the key for future success.

Interesting and very insightful article. I agree with many parts of the article. Just to add, not only product, middle and back office jobs will go, but also a lot of RM jobs will be going soon as well. Only RMs in the very top level with an established UHNW clients or the ones who has entreprenuerial and networking skills will be able to survive... I strongly belive that this transformation is a great opportunity to private banks and bankers to re-invest themselves.