Barclays Private Bank has conducted a study on the transfer of Fortune in Family Offices. Could you tell us more about the terms of this study (how many people were interviewed, profile of the people, etc...) and above all why did you carry out this type of study?
The research is based upon a survey of over 400 global HNW individuals with at least £5 million in assets each, in-depth interviews with 20 HNW families and their bankers and intermediaries, supported by independent behavioural analysis.
The main reasons why we decided to carry out this study is that passing on of wealth is high on the agenda of many wealthy families. Around 25,000 high net worth individuals in Europe, Africa, Asia and the Middle East are estimated to transfer US$15 trillion to the next generation by 2030. Therefore, building trust and understanding between generations will become more and more important in the success of wealth transfer over the years to come, an area in which private banks also play a key role.
Which of the study's conclusions were the most surprising, and which are fundamental for the Private Banking business?
The majority of findings were in line with our expectations but one statistic that might surprise some is that 69 per cent of Millennials stated that they feel a sense of duty to continue the family legacy. This goes against the common assumption that the younger generation are more interested in spending money for their own enjoyment and shows that, in general, they are committed to developing their experience, skill set and advisory network in order to take the family and its business interests through the next phase of development.
Is Monaco a land of Family Offices? Why are they setting up in Monaco, and which countries are in competition with the Principality?
UHNWIs have a tendency to regroup themselves in single or multi-family offices. Monaco houses over 100 billionaires (whose wealth global reach is around $2 trillion) and one out of three of its 38,000 residents is a millionaire, so we can confidently say that there is a strong and growing domestic market. In the past years, we’ve also seen more and more family offices move to Monaco. Just like Switzerland, its political and financial stability as well as its wealth-friendly regulation and policies and long-standing tradition and good reputation in the private banking area are attractive for both domestic and international clients.
In your opinion, what could be done to further strengthen the image of the Principality with Family Offices?
In addition to having a good reputation, being a good advisor, and serving clients in Monaco, today banks need to able to provide clients with bespoke solutions wherever and whenever they need it. Family offices want to access the same banking capabilities and level of sophistication in Monaco as they would when banking in the US, UK or Switzerland. Clients expect to have a global discussion, not just talk about the bank account they have in Monaco. Barclays Private Bank is well prepared to serve this kind of client. Thanks to the strong links between the private bank and our corporate and investment businesses, we are able to bring the full banking capabilities of the Barclays Group to our clients in Monaco.
