The new company, based in Luxembourg, already has 25 clients, one of which includes Nord Europe Private Bank, and is thought to be looking at the preliminary stages of international expansion, envisaging a further 70 additions in the medium term depending on market conditions.

Oddo and NGR believe that the core problem in private banking is more to do with strategy over business model; in their view private banks should reduce costs, veer away from “secret banking” and invest in improving the quality of service they provide.

This publication was unable to contact either party before going to press.

In other recent developments, Oddo & Cie acquired Banque d’Orsay from the German group WestLB in a bid to boost its asset management and private banking presence.

The Oddo Group is majority-owned by the Oddo family, which holds 42 per cent of its capital. As at the end of 2009, the group has €17 billion (around $22 billion) of assets under management.