A wider customer base now has access to the same services.
Private banking has proven to be one of the most challenging business sectors for banks in Africa. According to Henley & Partners’ Africa Wealth Report 2023, there are 138,000 high net worth individuals (HNWIs) on the continent, of whom 23 have assets of at least $1 billion and 328 have at least $1 billion. He has a personal fortune of $1 billion.
Competition for a limited number of ultra-high-net-worth clients is no longer viable, with 56% of them concentrated in just five countries: South Africa, Egypt, Nigeria, Kenya, and Morocco. As a result, some banks have significantly lowered their wealth standards.
However, devising strategies to attract and retain high-net-worth customers requires a high degree of adaptability. Remarkably, of the $2.4 trillion in investable assets held by the ultra-rich, only about $150 billion was available to banks and asset managers. These funds have primarily been directed toward real estate and publicly traded company holdings.
Idowu Thompson, Group Executive, Private Banking and Wealth Management at First Bank of Nigeria, emphasizes the need to go beyond the obvious to serve the wealthy. ”
Best Private Bank in Africa: Standard Bank
In 2022, Standard Bank achieved an impressive customer retention rate of 99% and welcomed a 7% increase in customer numbers, gaining 105,290 new private banking customers and increasing total customer numbers to over 1.5 million. did. This achievement is highlighted by the bank’s strong financial performance, with the Private Banking division’s overall revenue increasing by 37% to $228.2 million.
Additionally, Standard Bank has $13.6 billion in assets under management. These achievements are particularly noteworthy for a bank that operates in his 20 markets in Africa and provides private banking services in 17 countries.
One example of this innovation is the wealth management app My360. It provides an integrated view of your personal financial situation, including both onshore and offshore allocations.
Best private bank for sustainable investing: First Bank of Nigeria
Earlier this year, First Bank of Nigeria launched a major overhaul in a bid to replicate the success it had achieved in its home market across the continent. The bank, which has doubled its number of customers to 4,000, sees wealth services as a promising growth vehicle. “Our strategy is driven by our goals of sustainability, inclusivity, accountability and responsibility to enable exponential growth,” said FirstBank’s Thompson.
This commitment is evidenced by the bank increasing lending to women totaling more than $43 million and training more than 18,300 employees in sustainable investing. These strategies have delivered impressive results, with net profit increasing by 159.2% to $299 million in the nine months to September, up from $115.3 million in the same period last year.
Best Private Bank Digital Solutions for Clients: Zenith Bank
Africa’s banking industry is currently in the midst of a fierce digital transformation race, and Zenith Bank has consistently been at the forefront.
The bank has wholeheartedly embraced cutting-edge technologies such as robotics, artificial intelligence, and blockchain and has invested in cutting-edge products and services, including the unique Zenith Bank mobile app, which bundles mobile banking with eaZymoney. So is ZiVA, the Zenith intelligent virtual assistant.
Our overarching goal is to revolutionize the customer experience and deliver value, especially to high-net-worth individuals who seek efficiency above all else. Zenith Bank’s investments in technology have paid off handsomely, with the bank posting a staggering profit of $457.8 million in the first half of this year.
Furthermore, the value and volume of electronic transactions increased by 9.1% year-on-year. Online banking, the foundation of wealthy banking, in his first six months he recorded a transaction volume of $ 28.9 million. Meanwhile, the mobile banking transaction amount was $27.3 million.