Wealth management incorporates both financial planning and specialized financial services, comprising personal retail banking services, estate planning, legal and tax advice, and investment management services. The goal of wealth management is to sustain and grow long-term wealth in the financial revolutionary arena and to manage wealth, and for that purpose, the span of services available is highly customizable to meet the specific needs of the client. Keeping wealth and solutions in mind, Hauck & Aufhäuser Privatbankiers was established in 1996 with the merger of two private banks; one founded by Friedrich Michael Hauck (1796) and the other by Heinrich Aufhäuser (1870). Though, Hauck & Aufhäuser’s history dates back 220 years back, it still holds the same vision – providing banking services (asset management, asset servicing, and investment banking) of the highest quality for private, corporate and institutional clients as well as independent asset managers, by using the latest scientific methods and technological means.
For Hauck & Aufhäuser Privatbankiers, wealth management is more than just management and investment of assets, as it has to do with the responsibility that wealth brings with it, for its clients, branch, and society as a whole. Hauck & Aufhäuser Privatbankiers became more efficient in techno-domain of wealth management with its acquisition by the Fosun Group in 2016. Hauck & Aufhäuser is also increasingly growing its influence by moving in the international arena and acting as a bridge for Chinese investors to Germany and vice-versa.
Managerial Decisions by CEO
Michael Bentlage became CEO of Hauck & Aufhäuser Privatbankiers during early 2017. Prior to Hauck & Aufhäuser Privatbankiers, Michael Bentlage served for many managerial positions including Allianz KAG, Bayerische, Hypotheken-und Wechsel-Bank, Activest Investment, as well as BayernInvest Kapitalanlagegesellschaft. He was appointed as the partner in the company with the aim for core business areas of Financial Markets and Assets Servicing in 2009. He took responsibility for bank strategy together with his colleagues in the Management Board Stephan Rupprecht and Wolfgang Strobel. While pursuing his vision, he particularly focused on the areas of digitization, internationalization and business growth.
Industry Scenario & Barriers in Asset Management
According to Michael, the current hurdles for all banks are the apparent rise in regulations, which is accompanied by the cost pressure due to increasing need for financial and human capital. Furthermore, cut-throat competition makes it even more challenging. Although, there is a reduction in the number of private banks in the past decades but with time and evolution in technology, the new business models are also evolving and enabling customers to access banking products more efficiently and easily.
Another challenge that the entire wealth management industry will have or partially might be facing is digitization. On one side, it provides digital access to banking and on another side it is increasing the efficiency of internal processes through the use of customized technology. All these factors result in increased cost pressure and simultaneously reduces the margin in business, which can only be counteracted with efficient and qualitative works in wealth management areas.
According to the current industrial scenario, banking landscape will continue to consolidate, due to which quality and cost will absolutely remain in limelight. However, at this point in time, Michael standing with his esteemed counterpart Michael Hauck, once said: “The private banker will hopefully keep his place as an advisor if one follows the rules of the game and at the same time pays attention to the changes in the economy.”
Clients Benefit along with Competition Tackling
Hauck & Aufhäuser Privatbankiers strategize precisely over tradition, expertise, and internationalization. Hauck & Aufhäuser Privatbankiers is strongly convinced that it can save itself in competition with a blend of exceptional quality and a high level of external and internal efficiency. Its acquisition by Fosun Group has further strengthened the company by providing necessary resources for continuous growth in future. The acquisition of ‘Sal. Oppenheim Company’ in Luxembourg, announced in early 2017, was a symbol of its growth in international market.
After all, Hauck & Aufhäuser Privatbankiers have more than two hundred years of experience that firmly anchored the company, and at the same time, it employs excellent technical experts at necessary key positions. It also pays close attention to solid academic records when selecting the junior staff. Its clients, therefore, get benefited from its high-quality standards.
In addition, the cooperation with Fosun gives it access to a huge network of organizations, investors, and experts. In concrete terms, this means that its customers not only have access to its range of products and services but also to a worldwide network – throughout the industry.
In reference to its future plan, Hauck & Aufhäuser Privatbankiers agenda is pretty clear i.e. more internationalization presence of its bank. To achieve this, it is growing with dual nature – organically and inorganically. It is committed in making its business more efficient in the right direction with the help of digital technology, and at the same time, making smart acquisitions will help in making and maintaining long-term profitable position in the market.