“Unless you go through bad times and good times with your clients, you will not build a solid relationship with them,” states Pablo Garnica, chief executive of JP Morgan Private Bank in Emea.
The affable Spanish CEO has certainly been living through some challenging times with clients since he rose to the helm of the private bank in the region five years ago, but he is nevertheless focusing on new opportunities. Some of these lie in the ability to identify buying behaviours of different segments and professionals and put together specialised, integrated teams able to serve them.
Although it is always hard to generalise, he argues that private equity partners or hedge fund managers have very specific needs compared to those of more traditional rich families that have inherited wealth, or family offices. These different needs are reflected in different buying behaviours.
“The more you work with the different segments, the more you see their needs are similar. And in order to meet different clients’ needs, one of the opportunities we have identified are specialised integrated teams,” says Mr Garnica.
These teams are made up of relationship managers, investment specialists, capital and wealth advisers that bring together extensive know-how to clients, and can also bring in outside experts when required. “As we continue to grow, we are reaching critical mass when serving different types of professionals who tend to have similar needs. So it is increasingly more important today to be able to identify their buying behaviour, adapt investment solutions and match advisers’ skills to meet clients’ needs.”
The UK is probably the most international market in Emea, where a more defined buying behaviour by different professional types is emerging, he says. And it is one of the key markets where the private bank sees growth opportunity.
Families have become increasingly global and it is critical for a private bank to have the ability to bring expertise and best practices from other parts of the world but with a local perspective, he says. “Having local businesses allows us to find good solutions that meet local clients’ needs, but are of global nature. One of the advantages of being a global bank is that when working with the ultra high net worth segment, you find similarities that you can leverage across regions.”
Integrated teams are asked to operate in concert with one other. “We gather each morning as a global private bank for a 30-minute meeting to discuss the markets and economy and what we should be communicating with clients that day,” says Mr Garnica.
Banks need to have solution teams that anticipate client needs and the next market evolution. They cannot work in isolation but need to be in constant communication with their highly sophisticated clients, he adds.
“If you think about the internet bubble back in 2001, everybody wanted to go into the IPO market,” says Mr Garnica. “Today people are looking more for investments that are producing income, that’s how the market is evolving.”
Growth agenda
The bank, which overseas more than $850bn for wealthy clients globally, has experienced significant growth in Emea, with 13 per cent revenue appreciation last year, with France, Italy and the UK leading the way.
“We have a growth agenda and as the market is very fragmented, I think there is still opportunity for consolidation,” he says. It is particularly important to expand in markets that are not as developed, such as Russia, where the bank has significant ambitions.
Last but not least, Mr Garnica’s biggest focus is on hiring. “You can have the best machine but if you don’t have the right people, it is impossible to succeed,” he says.
“We recruit local people that understand local sensitivities and the needs of a certain client segment.” In Emea, all the market managers are Europeans, although many have an international background, having had work experiences in the United States, like Mr Garnica.
Market managers are tasked with growing the business but also identifying local talent, which can be sourced from other banks or other industries. “I think the best hires come from internal referrals,” states Mr Garnica.
Instilling JP Morgan’s customer-centric culture in private bankers is the most important part of the training process, he explains.
“When serving clients you need to be able to deal with different personalities, which vary a lot especially in the ultra high net worth space. You need to listen to clients, as a lot of knowledge comes from them. Clients are looking for partners in everything they do.”
Biography
• 2007-present: Managing Director and Head of JP Morgan Private Bank EMEA
• 2003-2007: Head of Onshore Europe at JP Morgan Private Bank
• 1996-2003: Head of JP Morgan Private Banking business in Spain and Portugal
• 1996: Moved to Spain – Joined JP Morgan
• 1992-1996: Head of the Banesto Miami office and senior
