Features and prospects of development of Private Banking in the Russian market of banking services Financial University under the Government of Russian Federation B4-5 Olga Ravcheeva

Key-words Competition - конкуренция Services for solvent clients – услуги состоятельным клиентам Bank products – банковские продукты Private assets – частный капитал Private banking Capital outflow – отток капитала Access threshold – входной барьер

Private banking -a set of specific services and products of financial and non-financial nature provided to a wealthy person and his / her family members on a confidential basis through a highly qualified personal Manager

Statistics Boston Consulting Group , top-15, a high level of private capital Private assets in Russia are expected to increase at an average annual rate of about 12% In 2017, the number of dollar millionaires in Russia increased by another 10% to 132 thousand people, and the total income of Russian billionaires - by 26.9%..

Bad influence Cash-outflow of solvent potential clients Low rate of confidence

The features of Private Banking in Russia the limited range of services offered less stringent requirements of banks to their clients Lower thresholds for access to services\ Big banks, big cities

Name of the bank/programmThresholds to access Sberbank Private banking100 mln. rubles УРАЛСИБ Private banking1 mln. dollars ВТБ24 Private banking50 mln. rubles City gold Private client, Friedrich Wilhelm Raiffeisen, А-КЛУБ долл./евро БКС Ультима (Confidence), М2М Private Bank (Antares World), Росбанк, Открытие Private Banking 30 mln. rubles Промсвязьбанк Private Banking, ЮниКредит Банк Private Banking 20 mln. rubles Газпромбанк Private Banking, Сбербанк Первый, Абсолют Частный Банк 15 mln. rubles АК БАРС, Персона, Банк Санкт- Петербург Private Banking 9-10 mln. rubles БКС Ультима (Discovery), М2М Private Bank (Orion One) 6-7 mln. rubles FPB Private Banking, ВТБ Банк Москвы Private Banking 3-5 mln. rubles Imperia Private Banking, B&N EXCLUSIVE Service fee only, regardless of the size of the balance

Clients of Private Banking

Habits of clients Keeping money on deposits 10% investing into investment instruments: structural products, trust management, Eurobonds

Tendency Range and structure of services changes Diversification Investment activity in commercial or residential real estate as an asset New status cards Transfer of capital to heirs

Conclusion High rate of private capital Capital outflows Non-confidence in banks Slow development

Questions Private banking clients mostly are… a)Businessman b)Top-managers c)Civil servants What bank has the highest thresholds to access to Private Banking?

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