It is very easy for the everyday person to see why Spain would be a country of importance in the wealth management market.
Great food, beautiful weather, and picturesque landscape – what more could you want.
But the private banking sector does not think like the average Joe – and there are other strategic reasons for a Spanish expansion.
In December, Barclays Private Bank grew its presence in Spain by hiring Juan Vilarrasa as head of private bank coverage.
Then a month later – Julius Baer set up an operation in Madrid to serve Spanish intermediary clients and Banque J Safra Sarasin (Luxembourg) unveiled a newly established branch in Madrid to serve private banking and institutional clients.
But Spain hasn’t been a positive for every private bank, as UBS and BNP Paribas have both recently sold their operations in the European country.
So, why have some private banks seen Spain as a growth area in the European market?
Latam and Iberia
Barclays PB’s Vilarrasa told International Adviser: “Spain has historically been a gateway to Latin America markets and an excellent entry point for Latin American clients looking for investment opportunities across the Spanish and European markets.
“Another advantage of the Spanish market is its growing tech ecosystem, with a relevant number of start-ups reaching the milestone of becoming ‘unicorns’ and a significant number of short-term candidates that should acquire that status in the coming months.”
Philipp Rickenbacher, chief executive of Julius Baer, said at its 2021 full results presentation on 2 February 2022: “Julius Baer is building an exceptionally strong position in continental Europe. Iberia is an example of the way how we generate high-quality growth in these important markets.
“Iberia is an important area of development, with our offices in Madrid and Barcelona and their outreach to the Portuguese market. Following the positive dynamics in 2021, we have upgraded our local operations in Madrid with a dedicated team for the intermediaries market, headed by a senior manager transferring from Switzerland to Spain.”
“We are determined to fully capitalise on the market opportunities arising from the wealth management needs of local entrepreneurs and ultra-high net worth individuals.”
Wealth in Spain
Spain does not always get the recognition that it has wealthy individuals in the country to give them financial advice.
But Vilarrasa says that Barclays PB believes Spain is a “very attractive country” for the group and it sees “a lot of investment opportunities for clients in the region”.
He added: “Our clients in Spain are family offices, UHNWIs, corporate clients, charities and foundations with a minimum of €20m (£16.7m, $22.7m) of assets invested with Barclays, although our target are clients who have investable assets well in excess of €100m.
“We would of course open accounts for clients with smaller amounts relying on the support of our European headquarters in Dublin.
“We have a wide spectrum of clients from different generations and with different needs. Our job is to fully understand our clients´ requirements and offer them the products and services that meet their needs, often remaining with our clients and their descendants throughout their lives.
“Many of them come to us seeking access to sophisticated investment opportunities across different geographies and asset classes, whilst others are more interested in our wealth advisory and management services, such as succession planning.”
