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Middle East Wealth Management Forum 2020 - Highlights - Tomasz Bortnik

Tomasz Bortnik of Citi

Jan 31, 2020

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1. What are the opportunities and challenges for this industry in the year ahead?

Video transcript

1. What are the opportunities and challenges for this industry in the year ahead?

The wealth management industry for us as a bank, obviously, has two components. One is the banking side and one is what we would call the investment side. The banking side, of course, is a little bit challenged generally by the low interest rates versus the expectation on the higher interest rates which existed over 2018 and 2019. What you will see is neither can we offer the type of time deposit rates, if you will, to the clients, and that's the general industry as a whole. And then, linked to that, the bond yields, which is a little bit switching to the investment side of the business, are at the, kind of, all-time low. That, put together, construes a bit of a challenge for us, because the customers are not getting very high yields on their deposits, and they're not getting very high yields on their investments. Basically, the challenge here that I'm trying to picture is that to get into a higher yielding instrument or investment, the customer needs to put in a little bit more risk. And that, I think, presents a challenge for the general industry as a whole; the expectation for a yield versus what the industry at large can offer with the available instruments out there, given that the bond yields are where they are.

 

 
 
 
 

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