Deutsche Bank plans to add more wealth management personnel in the US as part of its broader strategy to build its global wealth management business, according to news reports.
The German lender is in the middle of a major restructuring as it tries to shrink its investment bank that has struggled to generate sustainable profits since the 2008 financial crisis. The shake up is expected to lead to thousands of job cuts in areas like equities trading.
The company plans to boost the worldwide ranks of its relationship and investment mangers in the wealth management division by about a third, or 300 more people, by 2021, under a plan by Fabrizio Campelli, global head of Deutsche Bank Wealth Management, Reuters writes.
We looked at trends we believe Deutsche Bank wealth management can be particularly relevant in and within those areas we are making some very targeted investments"
The bank plans to spread the new hires across its America, Europe and Emerging Markets operations, according to the newswire.
"This drive to grow our business is now materialising with a big investment push," Campelli tells Reuters. "We looked at trends we believe Deutsche Bank wealth management can be particularly relevant in and within those areas we are making some very targeted investments."
The bank has already made inroads on its US hiring spree. Last month, Deutsche Bank brought on Michael Rogers, who joined the firm from Merrill Lynch Private Banking and Investment Group, to serve as its West Coast head. Deutsche Bank then hired Angel Chenand Donald Taylor, who previously served as senior vice presidents at City National Bank's Private Client Services, as managing directors in Los Angeles.
Wealth management is attractive to banks as it requires less capital and its earnings tend to be less cyclical.
But it is also highly competitive. Swiss banks UBS and Credit Suisse are already big players, with wealth management at the heart of their business models, while upstart fintech companies are also trying to make inroads.
"The space is very crowded and the market is one that many banks have sought to make a mark on," said Campelli, who has run the business at Deutsche since October 2015.