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How network banks organize themselves to invest in the private banking niche

Private banking is not the prerogative of specialized establishments. All banking groups with a retail network also offer private banking and wealth management services. And by their brand and their territorial network, they weigh heavily! Another advantage to their credit: the possibility of issuing bank credit and thus of financing real estate projects and businesses. But not all are organized the same way. “In banking groups, there are integrated models or pure player formats backed by a banking group, such as Natixis Wealth Management”decrypts Audrey Koenig, the director of this entity belonging to the BPCE group (Banque Populaire and Caisse d’Epargne).

Other houses have opted for this organization, such as Crédit Agricole, with its subsidiary Indosuez Wealth Management, “the Crédit Agricole Group’s global wealth management brand”, underlines its managing director, Jacques Prost. Or the Transatlantic Bank, which is none other than a subsidiary of Crédit Mutuel Alliance Fédérale (Crédit Mutuel and CIC).

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Alongside these brands, which are more positioned in wealth management (count at least 1 million euros at Natixis Wealth Management), the network manages wealthy customers within private banking departments. Despite this organization, wealth management can bring its know-how to retail banking. “We provide services for network banking customers with our subsidiary VEGA IM, which offers discretionary management for Caisse d’Épargne and Banque Populaire customers, or with Teora, our life insurance brokerage in open architecture”, cites Audrey Koenig as an example.

Customer segmentation

Other banks favor more integrated organisations, like BNP Paribas. “BNP Paribas Wealth Management covers the group’s private banking system at the international level in synergy with the commercial bank, the business centers and the group’s investment bank”, exhibits Anne Pointet, its deputy general manager. In practice, the private banking teams are integrated into the regional departments, where they provide their expertise. Synergies that allow the entity to recruit around a third of its customers from the network and another third from the corporate network.

This organization also gives access to private banking from 250,000 euros in cash. But then, a segmentation of the clientele is implemented: wealth management is offered from 5 million euros. With 25 million, you join the club of large private clients then, from 100 million euros, that of strategic clients. ” We we are deploying a specific value proposition for each type of customer with a common DNA, but also cross-functional approaches, especially for entrepreneurs”, says Anne Pointet.

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