Company Profiles

A "Bank For Entrepreneurs" - Tying Wealth, Corporate Services Together At Deutsche

Tom Burroughes, Group Editor, London, 8 November 2021

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This publication asked the bank how it has coped with COVID-19.

As a result of the pandemic, one big change since the start of 2020 is that clients are more reachable and easier to have calls with, de Sanctis said, referring to the surge in the use of platforms such as Zoom.

“A lot of clients are concerned about what the world will be like, not just because of COVID-19 but because we have had 10 years or so of zero interest rates. There is a clear consensus that this situation isn’t sustainable,” he said. “We have been in a very extreme situation and via the use of extreme monetary and fiscal policy measures policymakers have been able to manage potentially existential risks for many people.”

“Times of change, as in this pandemic, make our underlying structural problems more obvious. This means that in subsequent periods of relative stability we need to work even harder on dealing with these underlying issues - otherwise we could face major risks around inequality, a lack of innovation and a deepening environmental crisis,” he said. 

Wealth management in many ways has to be considered as a form of risk management. But this is not just about mitigating risks of loss and other problems but also about not missing out on opportunities created by change, de Sanctis continued. 

“We know that changes in the economic environment often open up new perspectives, which might allow clients to take stock of previous habits or biases and therefore create room for change. As your question points out, today’s prudent risk manager must consider how to avoid missing opportunities as well as ways to reduce risks. Our relationship managers and their portfolio management teams are well versed in helping clients find ways to take advantage of these opportunities – even if they may be at the riskier end of the spectrum – by using hedging instruments as well as a traditionally diversified global asset allocation for example.

“In general terms, we have noticed that our sophisticated clients do tend to have an open mind-set and seem prepared to adjust to the conditions created by changes we have seen in the economic environment, taking advantage of many of the investment opportunities we put to them,” he said. 

Finally, this news service asked de Sanctis about Deutsche’s involvement in the art world. 

“Fine art can be more than just something to appreciate and admire; with Deutsche Bank’s expertise and due diligence, it can also serve as loan collateral. Leveraging a fine art portfolio provides our UHNW clients [with] an opportunity to monetise an otherwise illiquid asset and is just one of a number of ways we approach and consider a client’s entire portfolio of assets when building a bespoke financial plan,” he replied.

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