Otkritie FC Banking Group offers a full range of Private Banking products and services to high net worth individual clients, including financial planning, asset structuring, brokerage and investment products, precious metals operations, real estate services, insurance products, and equity investments in Russia and abroad, as well as structured products and lifestyle products.
The Group’s Private Banking business operates according to the "open product architecture" principle, offering solutions developed both internally and in cooperation with its Russian and foreign partners. This principle gives our clients maximum freedom in choosing financial and non-financial instruments and access to the best products that the world’s leading financial organisations offer.
In 2014, the Private Banking division focused on improving its existing product line.
The Private Banking diversified the product line and now offers Hong Kong dollar deposit accounts which is the 12th currency in a deposit product line.
Starting in 2014, the Private Banking clients can have their banking cards denominated in British pounds and Swiss francs to avoid currency conversion fees when paying for their purchases in the UK or Switzerland. This product is of special value for parents whose children study in these countries, as it allows payments in local currency.
In December 2014, the Private Banking package was launched. As part of this package, the Private Banking division offers high interest on banking card balances (up to 0.5 % higher than the deposit rates), the Novikov Group restaurant loyalty card, an insurance package, a free Priority Pass and many other services.
In summer 2014, Otkritie Insurance Company and Otkritie Life Insurance Company launched special insurance programs, including various endowment and investment life insurance plans targeted at Otkritie Private Banking premium cardholders.
Most of the Group’s Private Banking clients are small and medium-sized business owners. In late 2014, the Bank and its partners launched an M&A consulting service. This business has proved to be a success and will remain high on the Private Banking agenda in 2015.
As part of the lifestyle management business, the Private Banking offers its clients various types of consulting services covering issues like children’s education, art banking, real estate investments, healthcare service programmes for family members in Russia and abroad, and much more. In 2014, the list of the Private Banking lifestyle business partners broadened significantly to over 100 companies. Private Banking clients gain special access to premium services, invitation-only events and prestigious world-class events. The Bank’s offices also host permanent exhibitions of art and special events featuring famous artists and experts in fine art. Over 2014, the Lifestyle business doubled its commission revenues.
Investments: Portfolio Approach
When selecting investment ideas for clients, the Private Banking team uses a ‘top-down’ approach. First, Private Banking specialists analyse the condition of the global economy and the trends prevailing in the global markets; then select the classes of investment assets, regions, and industries that are most attractive in the mid-term; after that the specialists choose the most appropriate instruments for each specific case. By spreading the assets across various regions of the world, the Private Banking team has managed to reduce its dependence on Russian assets significantly, which for the most part of 2014 lagged behind the international benchmarks. The percentage of Russian companies/indices in Private Banking clients’ portfolios did not exceed 10 %.
With the Asian market seeing a growing economy and strengthening political positions, the Group expanded its product offering linked to China and the Asia Pacific region.
Euromoney Private Banking Survey Results
The Euromoney Private Banking — Russia Survey 2015 ranked Otkritie Private Banking team second in Russia among other Russian and foreign private banking businesses in the “Wealth management and structured assets” category.