Brazilian Institutions open room in the private banking
Valor Econômico
Two of the greatest international consulting firms have just disclosed surveys that indicate the increasing relevance of the Brazilian financial institutions in the world of the wealth management, a universe that involves more than US$ 1 trillion.
The Brazilian private banking has gained market with the international crisis and it tends to keep the new resources achieved, foresees João dos Santos, partner of PricewaterhouseCoopers (PwC), whose survey aims at discovering the main current concerns of the wealth managers, from the interview of managers of 238 financial institutions in 40 countries.
Away from scandals like the Madoff case, which affected many foreign institutions, and showing good condition of liquidity and soundness, the private banking connected to Brazilian conglomerates have attracted new clients. Anther piece of good news was surveyed by KPMG: on a survey made with 100 senior executives of the area, in 17 countries, nine mentioned Brazil as the market of greatest growth potential for the private banking. This figure is above the figure of references made t o Russia (8), the United Kingdom (7), Singapore (6) and Italy (5), and it is equal to the United States. There India (31) and China (49) were mentioned more times. Ricardo Anhesini, KPMG partner and head of financial services, attributed the good position of Brazil to the social mobility and to the potential of economic growth.
KPMG makes this survey on a yearly-basis (only in 2008 it was not made due to the financial crisis) and it focuses on the trends of consolidation in the area of private banking. This year's survey indicated a reduction in the consolidation "appetite" in the wealth management area, emphasized Anhesini. In fact, on the previous survey, made in 2006, 84% of the people polled foresaw an additional consolidation of the sector in the three following years. In 2007, the percentage fell to 81%, and, this year, to 72%. Anhesini explained the reduction in the percentage was caused by the decrease in the margins of the business and the reduction of the value of the institutions.