The private banking market - France

It was in Europe that the first banks appeared in the 12ᵉ and 13ᵉ centuries, notably in Italy and the Netherlands. France was still not very open to the world of money, and it was only in the 18th century that France saw the birth of its first major bank called the "Banque Générale". The " Haute Banque" finally took hold in the first half of the 19th century. These were the great "houses": the Rothschilds, the Mirabauds and the Periers de Grenoble. These merchant bankers were involved in world trade, the development of European finance, the launch of the first savings banks, town planning and railroad construction. By the beginning of the 20th century, France had an established and diversified banking network: regional banks, merchant banks and deposit banks. There are many different types of bank, but in this study, we'll focus on private banks. originally family-owned, with a personal commitment by the private banker to his family fortune, they are sometimes specialized departments of generalist network banks, providing their high-end clientele with a level of service similar to that of an independent private bank. Private banks offer services such as comprehensive management of traditional financial investments, access to private markets, insurance expertise and, above all, a sense of security.above all, they offer the feeling of being part of a "club" through invitations to business conferences, cultural events and networking evenings... These privileges can be explained by the very high entry fees of around 500,000 euros. The clientele targeted by private banks are high net worth individuals, who are steadily increasing both worldwide and in France. In 2023, there were almost 2.79 million millionaires in France, and by 2026 there will be almost 3.94 million, according to Crédit Suisse. As a result, the private banking market is dynamic, thanks to a growing pool of savers. In 2023 , savings flows were at a high level: 315 billion euros in 2023, 109 billion of which were directed towards investments. Against this backdrop, private banks are enjoying good momentum, helped by inflationary pressures and the erosion of capital, which are prompting the French to seek new ways of investing to preserve their wealth, and therefore potentially to turn to private banks. However, private banks are increasingly challenged. In fact, private bank customers appear to be more demanding, and are no longer satisfied with personalized service or wealth and tax advice. Moreover, competition between the various players is accelerating. As a result, private banks are implementing different strategies: offering diversification or differentiation to position themselves in the market.