Private Client Services in Australia 2005: Industry Report

Private Client Services in Australia 2005

Product Type: Market Research Report
Published by: Datamonitor
Published: August 2005
Product Code: R313-11751

Description

Introduction
Private Client Services in Australia 2005 is Datamonitor's definitive guide to private client services in Australia. Building on the resources and expertise of Datamonitor's Global Wealth Service team, the report is rich in analysis and provides in-depth and impartial market assessment, competitor intelligence and market forecasts.

Scope
The report sizes and segments the Australian HNW sector and investigates the major competitive trends and issues affecting the market.
Examines the products and services provided to HNW individuals such as private banking, private wealth management and private client stockbroking.
Provides market forecasts to 2008, allowing the reader to understand both the current state, and future potential, of the HNW sector in Australia.
Highlights
Datamonitor believes that there is an opportunity for the domestic banks to leverage their internal resources in order to provide both current and potential clients with a better experience.

In particular, it is the domestic competitors that will need to change the way they do business. There are three main ways Datamonitor believes that this can be done, namely through differentiation, through leverage of existing resources and through tight segmentation.

n a market that is becoming increasingly wealthy it is likely that individuals will begin to demand more from their private client service providers. This presents the domestic players with an opportunity to differentiate themselves through the provision of more specialist services. Two areas that stand out are philanthropy and art banking.

Reasons to Purchase
The report sizes the affluent population of Australia, enabling private wealth managers to determine their market share versus their competitors.
The report provides the most comprehensive competitor information on the Australian private client market ever conducted.
The report enables strategic managers to determine the direction of the market and their position in its development.

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION 10

What is this report about? 10

Who is the target reader? 10

How to use this report 11

CHAPTER 2 MARKET OVERVIEW 12

The Australian wealth market has been buoyed in recent years by four factors 12

GDP growth has been robust 12

Interest rates have been low 12

The ASX has remained robust 13

Retail wealth has grown strongly 13

Wealthy Australian clients are an attractive niche for four reasons 15

Affluent individuals are abundant 15

Affluent individuals own a large share of retail wealth 16

As well as owning large amounts of assets, affluent individuals tend to have high incomes 18

Affluent individuals are located in ‘easy to reach’ areas 19

Data 22

CHAPTER 3 COMPETITIVE DYNAMICS 26

The national banks offer a range of different quality services 27

National Private Bank 27

Westpac Private Bank 32

ANZ Private Bank 35

Commonwealth Private Bank 37

St.George Private Bank 41

Macquarie Private Bank 45

Four of the six regional banks focus on private client services 48

BankWest Private Bank 48

Bank of Queensland Private Bank 50

BankSA Private Bank 51

Adelaide Bank Money Market Private Clients 53

A wealth of other mainstream private client service providers 54

UBS Wealth Management 54

Deutsche Bank Private Wealth Management 56

Citigroup Private Bank and Smith Barney Private Clients 57

Myer Family Office 59

Perpetual Private Clients 61

Goldman Sachs JBWere Private Wealth Management 62

First Samuel is a niche Melbourne-based player 64

Data 65

CHAPTER 4 FUTURE DECODED 66

The outlook for Australian private client service providers is positive for three reasons 66

Underlying macro-economic factors are positive 66

The value of liquid assets is growing 67

Wealthy individuals are set to increase in number 69

The future will mean three key changes for the domestic competitors 70

Competitors must seek differentiation 71

Competitors need to leverage their existing resources 73

Competitors must look for segmentation 74

Data 77

CHAPTER 5 APPENDIX 79

Definitions 79

AAGR 79

CAGR 79

Gini index 79

Liquid assets 80

Liquid asset bands 80

Premier banking population 80

Research methodology 80

The Global Wealth Model 81

The UK sub model 81

Asia-Pacific sub model 81

Forecasting methodology 82

Datamonitor’s wealth numbers compared with others’ numbers 82

Bespoke Wealth Market Sizing 83

Further reading 84

Datamonitor Asia-Pacific Wealth Reports 84

Datamonitor Asia-Pacific Insight Reports 84

Datamonitor Global Wealth Service: Competitor Tracking 85

Datamonitor Financial Services Consulting 85

Asia-Pacific contacts 85

LIST OF TABLES

Table 1: Macroeconomic factors, 1999-2004 22

Table 2: Liquid wealth of individuals with liquid assets of more than USD400,000, 1999-2004 22

Table 3: Number of individuals with liquid assets of more than USD400,000, 1999-2004 23

Table 4: Share of wealthy individuals and liquid wealth in each liquid asset band, 2004 23

Table 5: The number of taxpayers in each high income bracket, 1998-2004e 24

Table 6: Percentage of households owning direct shares, 2002-2004 24

Table 7: Proportion of high income individuals and direct share owners by state, 2004 25

Table 8: Interest rates paid on the Commonwealth Private Bank Account 38

Table 9: Key data for selected private client service providers 65

Table 10: Key macroeconomic factors, 2004-2009f 77

Table 11: Retail liquid savings and investments, 2004-2009f 77

Table 12: Forecast liquid assets of individuals with more than USD400,000 in onshore liquid assets, 2004-2009f 78

Table 13: Forecast number of individuals with more than USD400,000 in onshore liquid assets, 2004-2009f 78

Table 14: Wealth markets that have been modeled using the Global Wealth Model 83

LIST OF FIGURES

Figure 1: Research methodology and report structure 11

Figure 2: The factors influencing wealth creation have been positive in recent years 14

Figure 3: Individuals with more than USD400,000 in liquid assets have grown in number at a rate of 12.8% over the last six years 16

Figure 4: The total value of liquid assets owned by Australian individuals with liquid assets of more than USD400,000 has increased by 59.5% over the 1999-2004 period 17

Figure 5: The wealthiest individuals in Australia enjoy a large share of liquid wealth 17

Figure 6: The number of high income individuals has increased by 114.7% over the last 5 tax years 18

Figure 7: The propensity to own direct shares increases markedly with household assets in Australia 19

Figure 8: NSW/ACT has the highest number of high income individuals, the highest proportion of high income individuals and one of the highest proportion of direct share owners, 2004 20

Figure 9: There is considerable diversity among private client service propositions in Australia 26

Figure 10: National Private Bank’s range of products and services 29

Figure 11: The identical websites of St. George Private Bank and BankSA Private Bank 44

Figure 12: Macroeconomic conditions are forecast to remain positive over the 2005-2009 period 67

Figure 13: Macroeconomic conditions will drive strong growth of retail savings and investments over the 2004-2009 period 68

Figure 14: The value of liquid assets owned by those with more than USD400,000 is set to grow at a rate of 8.8% over the 2004-2009f period 69

Figure 15: The number of individuals with more than USD400,000 in liquid assets will grow at a rate of 9.4% averaged annually, 2004-2009f 70

Figure 16: There are three ways in which a private bank can leverage group resources to attract and retain clients 73

Figure 17: The ‘Customer Value Framework’ 75

Figure 18: A possible segmentation scenario for the domestic banks 76

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