Here are 2 banks in the news. Both offered wealth management advice. They attracted customers to their services but failed as institutions.
This is what SVB says “Your complex financial life demands expertise that’s as varied as your needs. Our capabilities mean we can take the holistic approach that suits your unique situation.”
“We strive to serve the innovation economy better than anyone – understanding your unique journey, so that together, we can unlock new possibilities that move you forward, faster.”
Credit Suisse says “Whether you’re investing, preserving, or transferring wealth, our wealth planning experts will craft bespoke solutions to suit your needs – without losing sight of the long term.”
You expect them to use well-crafted language. To say the things all customers want to hear. Any question a potential customer would have, they will have a carefully articulated response that promotes themselves. Actually, there is no law against them doing so. Yet it is clear customers in these banks will have anxiety. Customers failed to carry out enough due diligence. The question is to what extent should “the customer beware’ compared to the institution ensuring they do not take advantage of the customer by employing ‘utmost good faith’. There will be an ongoing debate on how you draw the line.
The failures illustrate the problem of institutions selling their own products. It is also clear that customers are not skilled enough to understand the risks they face.
There are many similar institutions selling their own products and services in the UK and throughout the world. The legislation is not powerful enough to stop these institutions from promoting their services as they have been doing. As such, customers have to protect themselves more than they should. For the present, it is clear customers have no choice but to employ “caveat emptor”
If you go direct to a bank or financial institution, the odds are stacked against you. How are you supposed to know what questions to ask the bank or wealth manager to satisfy yourself? How are supposed to know if the answers they give you are true? “If you only hear one side of the story, you have no understanding at all.”— Chinua Achebe
There has never been a time when customers need to use impartial guidance. To act as a financial bodyguard against national and international institutions.