By Mr. Jean-Daniel Troy, Chief Operating Officer at Barclays Bank in Monaco to the MSc in Finance and MBA students
Earlier this month, my fellow MSc in Finance and MBA students and I had the great opportunity and honor to attend a conference entitled “A Snapshot of the Private Banking Industry” by Mr. Jean-Daniel Troy, Chief Operating Officer at Barclays Bank in Monaco.
It was a unique opportunity for each and every one of us, in order to gain some ‘on-the-spot’ insight on the practical aspects of private banking, and combine it with the theoretical framework that we have been building throughout our academic studies at the International University of Monaco.
Some of the ‘trendy’ topics Mr. Troy addressed during the conference were: the main drivers of wealth management growth over the past years, the regulatory changes following the financial crisis, but most importantly the great challenges that the industry is facing.
As a matter of fact, one of the greatest challenges is the shift from private baking to ‘digital banking’. It is an undisputable fact that technology has become an integral part of our lives, from the way we interact with each other to the way we conduct everyday business.
As a result, more and more financial institutions are trying to ‘digitalize’ their interaction with their clients in order to gain a competitive advantage. Nonetheless, this gave rise to new competitors, such as ‘FinTech’ companies, due to the relatively low barriers to entry, which poses a great threat for banks, along with other on-going threats, such as the fact that interest rates are approaching the zero-lower-bound.
Last but not least, Mr. Troy stressed the crucial role that private banking plays in the Principality.
More specifically, Monaco has approximately 31 banks and 53 portfolio management companies, which in turn, are managing more than 120 billion of assets. However, the private banking industry in Monaco keeps experiencing cost pressure due to the regulatory challenges, such as the MiFID II and PSD 2 in addition to the increased costs to digitalize the servicing interaction with clients.
I would like to finish by thanking the Mr. Jean-Daniel Troy, as well as Barclays Bank for such a wonderful interaction with us!
On the same token, I would like to thank the General Director of IUM, Mr. Jean Philippe Muller, our Director in the MSc in Finance, Dr. Gregory Moscato and last but not least, Ms. Sophie De Lorenzo, Director of Corporate Relations for organizing such a great event, and something tells me this is only the beginning of a wonderful ‘journey’ at IUM!
By Marianna Petroula, current MSc in Finance student