Coutts exec: We will not acquire firms at expense of service levels

Mo Kamal-Syed, who is also chief investment officer for Natwest, responded to questions regarding Sky News reports that the Natwest group is mulling a £3bn takeover bid of Tilney Smith & Williamson - soon to be Evelyn Partners.

So far, Coutts’ path has been to grow internally, rather than acquire businesses. “What we have been doing is pivoting as a business to be more than just a bank,” Kamal-Syed told FTAdviser. “A bank is more of a utility function.”

Asked whether the Natwest Group was interested in a firm like Tilney, against the backdrop of advice firm consolidation, Kamal-Syed said: “Even internally, we can always go faster. But we should go faster not at the expense of our controlled environment or our clients. Or taking risk where we don’t need to take risk. So pace, absolutely.”

We should go faster not at the expense of our controlled environment or our clients.Mo Kamal-Syed

As a result of such thinking, Coutts has increased its investment management credentials over the last five years, and expanded services such as succession planning to better preserve its clients’ wealth.

“This growth is all internal and wholly organic, as opposed to deciding to acquire a business and that continues to be the case,” Kamal-Syed explained. 

“In terms of growth, it’s all been internal. Our advisers, our relationship managers. We now have a client director that brings the best of the firm for the client.

“We are very fortunate to have the best brand in the marketplace. So it’s just a question of what’s the best way to increase our conversations and meet more clients’ needs.”

Historically, the bank managed clients through a team of bankers and wealth managers which meant clients would look at Coutts as one firm. Now, Kamal-Syed said the client director works a lot like a “conductor” in linking the banks’ various services - be that philanthropy, succession planning, or investment management.

Growth is all internal and wholly organic, as opposed to deciding to acquire a business and that continues to be the case.Mo Kamal-Syed

“It’s more what I call a joined up approach to a client,” he said. Coutts offers banking, lending, and wealth management services through one app.

But the asset management boss suggested there was still more which could be done for Coutts’ existing clients, in terms of serving more of their needs.

“We have plenty of clients. Do we do enough with the existing client base? Let alone what we do for new bank clients,” said Kamal-Syed.

“As you develop that internal capability and develop your propositions, then you start to see that pace automatically increase. Now, we have to get the proposition right.

“We then have to make sure that it’s simple enough to make sure people internally and externally can understand it. We can absolutely go faster and that’s what we’re trying to do. But not at any cost. The one thing we don’t want to compromise on is client service.”

A new generation of entrepreneurial clients

Over the past 10 years, Coutts has been investing “heavily” in technology, according to Kamal-Syed. He also said the bank has “a really diverse client book”.

This includes first generation entrepreneurs from new industries such as gaming, as well as more ‘typical’ professionals like lawyers, FTSE100 chief executives and those handed inherited wealth.

The Coutts team works across verticals, with employees split into segments such as media and entertainment, sports, and professionals.

Gaming, which falls under this media and entertainment area, is an emerging segment in the global economy which Coutts has been growing more quickly over the past three years.

“Gaming is an area which has really mushroomed as a segment,” said Kamal-Syed. “Companies like Sony are relying on young entrepreneurs to create the next generation of wealth.”

Last year, Sony struggled to keep up with the demand for its PS5 consoles due to demand. Five months after launch, Sony had sold 7.8mn PS5 consoles. “There’s still a backlog in getting them out now because of the sheer demand,” said Kamal-Syed.

Coutts now sponsors an annual gaming convention which, last year, was hosted in Los Angeles. “It’s quite a leveller, you have people from all backgrounds. I was blown away by the quantum of money thrown at it,” said Kamal-Syed.

“Why wouldn’t we be part of this ecosystem? We use technology as an enabler for our business, which is really quite different to what people perceive it to be.”

Coutts, which has a history dating back to 1692, became part of Natwest in 1990 through a merger. The private bank forms a large part of Natwest’s wealth management arm serving high-net-worth individuals, while Natwest Premier Banking serves affluent retail clients.

ruby.hinchliffe@ft.com