Sunday, May 14, 2023, 07:41
Banco Sabadell is constantly updating itself to adapt to new times, to constant changes and to the needs of its markets. And as a result of this, it has undergone a review process of the organization with the aim of renewing its Private Banking model and improving the value proposition it offers its customers.
It was Óscar Pérez, director of Private Banking for the Eastern Territory of the entity, who brought up the news in a new Banco Sabadell pill, available from today on laverdad.es. This new model improves the experience in “a new macroeconomic context in which this segment is going to be a clear business growth vector for Sabadell, both this year and the next”, he assures.
Thus, the entity has made a split of the 300,000 personal banking customers and has incorporated into Private Banking the 63,000 who require and value specialized advice to manage their wealth. “Sabadell is firmly committed to the Private Banking business with this new model, which places its new starting perimeter at around 93,000 customers, of which 21,000 are located in the Eastern Territory (Valencian Community, Murcia and the Balearic Islands),” he adds. .
There, a segmented value proposition has been defined into two different audiences, offering the client access to professional and comprehensive advice: clients with net worth of less than one million euros (about 78,000), are integrated into the area called Private Banking, and those with more than one million euros (about 15,000 clients), in the Assets subsegment. “This is a project for the entire Bank, which has worked so that all Private Banking customers have access to the best products and excellent service, reviewing all operating circuits, the communication and events strategy, and technological capabilities. », clarifies Oscar Pérez.
The new model takes advantage of the Bank’s current structure, which has six territorial departments that integrate the entire commercial staff of the new Private Banking. To this end, they have doubled the number of bankers, going from 175 to 482, with the objective that the client feels identified as the essential element of their relationship in Private Banking. In the Eastern Territory, specifically, it has gone from 31 to 111 bankers, multiplying both the workforce and the number of clients in the segment by almost four.
“With this organization we want to maintain the high satisfaction rates we have and grow,” he says. In this sense, in addition to increasing the number of bankers, they have made available to Private Banking customers a preferential customer service telephone service, with priority access to branches, and which will be complemented by market and tax experts.
In markets, Banco Sabadell has formed a specific team that allocates assets, which they then explain to both bankers and clients, and in tax there is a team specifically dedicated to this. This team recommends according to each risk profile: the process starts from a quantitative model that, in addition to the typical parameters of historical return and risk, allows the opinion of its strategists to be incorporated. This opinion is shared and discussed in the Investment Committee where, together with the ‘outputs’ of the quantitative model, the final decision is made.
Risks and market
At Banco Sabadell, they have identified two main risks for this 2023: on the one hand, that inflation does not fall at the expected rate and that therefore monetary policies must be more restrictive and, on the other hand, that the slowdown in economic activity is more intense than expected as a result of having suffered one of the most significant increases in interest rates in recent decades.
At the macroeconomic level, indicates the expert, a moderate drop in economic activity is expected for this year, both in the US and in Europe and in a context in which Spain, although a decline in activity is expected, will remain at positive levels .
In this last aspect, the director of Private Banking for the Eastern Territory of the entity indicates as support factors for Spain the greater traction in ‘Next Generation’ funds, the resilience of the labor market, the fiscal measures to support the economy, the recovery of tourism and the good starting point in terms of levels of indebtedness of families and companies. “In any case, growth in 2023 is expected to be less than 5.5% in 2022, since it will be around 1.5%,” says the expert, indicating that the forecast is for inflation to moderate and “let us gradually approach the objectives of the central banks”.
«This is one of the consequences of aggressive policies of interest rate rises by central banks to contain inflation, which in 2023 is expected to fall back to normalize as early as 2024. With this, the Central Banks will stop raising rates of interest and possibly begin to signal drops in the last part of the year, “says Pérez.
In short, he sees this context as “favorable” for the markets, particularly for fixed income, since the outlook is for positive revaluations for both stock markets and bonds this year. The focus of the investment is on the opportunities offered by investments in fixed income, with attractive interest rates after more than a decade of zero or negative rates.
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