Changing market environment in private banking

: a quantitative study of the DACH Private Banking market investigating customer behaviour with a focus on personality traits

Abstract

The Private Banking segment faces several dynamics in the market environment, pressuring its profitability and threatening its long­term existence. Based on an extensive literature review and quantitative data collection, this thesis aims at clarifying incumbent banks’ action fields and their challenges to counteract. Survey results about customers’ behaviour, needs and expectations in Private Banking identify broad consent in digital infrastructure endorsement, cost awareness and little significance of human advisors. However, varying opinions are found on unrelated banking approaches. Propensities in this context are statistically significantly influenced by (a) Age, (b) Time spent with financial concerns and (c) Personality Traits. The author concludes the need for digital upgrades. Additionally, Private Banking institutions should consider a differentiated customer approach for new controversial business forms to retain and acquire classic Private Banking customers as well as attract potential future target groups.

Date of Award	25 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Daniel Fernandes (Supervisor)