Barclays Ups The Stakes In Wealth Management Services

by Carla Johnson, Investors Offshore.com

29 June 2001

Barclays is one of the leading providers of wealth management services in the world, but with the market becoming increasingly competitive Barclays has realised that complacency just won't do and has unveiled this week a new strategic approach to managing the assets of the affluent. Intending to build on its existing strengths but also to introduce new initiatives, Barclays has hit on what it believes is a 'unique solution' (don't they all say that?) for the 'cash rich, time poor' customers, with the newly named Barclays Private Clients.

According to Barclays the new service will offer a single relationship across banking and investment for individuals across the UK, Europe and internationally, by sourcing the best products in the market. Already Barclays has a leading franchise in this market with over one million clients across 33 countries and £81bn of assets under management.

The new strategy will bring together existing operations (Premier, Europe, Offshore, Private Banking and Stockbrokers) into one business, Barclays Private Clients, with a new client proposition, which is the most comprehensive in Europe. The aim is by 2005 to increase client numbers to 1.4 million, and to more than double assets under management. Barclays expect that almost half of the client number growth (170,000) will come from Continental Europe where it has the top-ranked affluent banking brand.

In a statement released by Barclays, Matt Barrett, chief executive officer of Barclays Group, said: 'With one million affluent and high net worth clients, £81 billion of assets under management and operations in 33 countries Barclays Private Clients already has a head start on rivals who have recently announced start-up plans. Barclays Private Clients is in the midst of a major transformation programme, which will deliver a distinctive unified proposition: a single relationship across banking and investments; professional and pro-active financial planning advice; world class investment products; great value banking; a single picture of financial affairs; and a seamless multi-channel service.'

Bob Hunter, Chief Executive Officer of Barclays Private Clients, added: 'Barclays is uniquely positioned to offer this service. We are already the number one retail stockbroker in the UK, the number two IFA, the top arranger of "big ticket" mortgages and the provider of "Open Plan offset". We are now pulling together these market-leading products and services into a single offering for our clients.'

The entry level for the service will be an income of £60,000 or investible assets of £70,000 for Barclays Private Clients (Premier Banking). Clients with over £1 million of investible assets will be eligible for Barclays Private Clients (Private Banking).

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