Merrill, for example, will undertake an international search for a client wanting to place his or her child in a top overseas school. The next level is a deeper pool but it is hardly an ocean. Bankers say privately they are not sure who's doing well in Australia and several said last week they did not think anyone was generating satisfactory returns. But nobody shows any sign of retreating, because the raw returns understate the strategic importance of the market. First, demographics point to a big expansion of the high net worth market as baby boomers begin the final push for their retirement kitty.
Banks also see private banking as a way to capture more of a client's total wealth for life.
ANZ, for example, knows it has many credit card clients who do no other business with it. The wealth management division will be bidding for their business. And private banking has a relatively high value, despite its high cost base. This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited.