An estimated 1.4m affluent individuals across
Central and Eastern Europe hold an estimated $55bn of offshore
wealth, presenting good opportunities for international private
banks and emerging local onshore banks.
Research from Datamonitor found affluent
investors, defined as those with more than $50,000 in onshore
liquid assets, lacked knowledge of international financial
services.
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The report estimated that clients in
Kazakhstan, Russia and Ukraine, held a minimum of $55bn offshore in
Guernsey, Jersey, the Isle of Man and Switzerland, by the end of
2009.
The study suggested local investors were
distrustful of their own banking system, providing opportunities
for international private banks to step in and provide high-level
services.
It highlighted Coutts’ international arm,
Société Générale Private and Citi Private Bank as international
private banks with strong East European wealth businesses.
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By GlobalDataRussian HNWI to rise 30% by
2014
Datamonitor analyst Michele Gorman said
international banks will need to work hard to make their products
more attractive, particularly as the number of wealthy individuals
in Russia is predicted to increase by nearly 30% by 2014.
The report found that Kazakhs, like Russians
and Ukrainians, are risk-averse investors with more than 95% of
their liquid wealth in deposits held onshore.
The average threshold to become a wealth
management client is around $500,000, although some banks have
lower deposit requirements of $100,000 or even $50,000.
The report said Russia has the best-developed
local wealth management market with Halyk Bank and BTA Bank,
providing private banking services through retail banking
platforms.
