PricewaterhouseCoopers (PwC) believes cross-border mergers and acquisitions of private banks and wea...
PricewaterhouseCoopers (PwC) believes cross-border mergers and acquisitions of private banks and wealth managers will grow over the next few years.
Steve Cater, PwC director, said: "There has been increasing M&A activity in the private banking and wealth management industry in the UK and on a cross-border basis. The latter is not surprising given the fact that private banking and wealth management is an international business."
He attributed the growth in M&A to the fragmented nature of the private banking and wealth management industry. Another factor, according to Cater, is the need for scale to generate profits and be able to attract a greater number of clients.
Cater added: "We see the larger private banks and wealth managers being successful as they have the scale and can provide a more holistic service to clients. The smaller private banks with a strong niche in a particular product area can also succeed but the ones which may struggle are the mid-sized wealth managers. We have seen this trend over the past 12 to 18 months and it can take a long time to play out."
PwC identified the key areas of M&A activity as being the UK, Germany, Switzerland, the Middle East and Far East. Cater added that there are more joint ventures among wealth managers and private banks than acquisitions in the Far East.
To benefit from this corporate action, PwC has appointed Frank Canosa as a non-executive director of its Corporate Finance Advisory Board.
PwC predicts an increase in M&A activity for wealth managers.
Frank Canosa has joined PwC to advise wealth managers on M&A activity.
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