1、Wealth&Asset ManagementEuropean private banking:Resilient models for uncertain timesAfter one of its most successful years,Europes private banking industry will now need to navigate an uncertain macroeconomic outlook and evolving client needs.This article is a collaborative effort by Sid Azad,Cristi

2、na Catania,Marius Huber,Sebastien Lacroix,Jan Quensel,Frdric Vandenberghe,and Christian Zahn,representing views from McKinseys Wealth&Asset Management service line in Europe.January 2023 Akinbostanci/Getty ImagesThe arrival of the COVID-19 pandemic called for new ways of doing businessremote service

3、 for clients and working at a distance for most bank functions.As in other industries,banks suddenly redrew their technology plans,raising spending levels and accelerating the adoption of advanced methodologies.The need to realign operating models to this superior level of technology has intersected

4、 with a reversal in private banking economics.For the preceding decade,the industry enjoyed the tailwind of rising financial markets,supported by favorable governmental policies and low interest rates,and achieved a long string of record highs in assets under management(AUM),revenues,and profits.The

5、 favorable operating environment has shifted,however,putting at risk the growth private banks had achieved and gradually reducing their profitability.Firms therefore need to reexamine their operating models,taking advantage of new technologies,while preparing to navigate an uncertain macroeconomic o

6、utlook and further changes in client needs.McKinseys 2022 survey of European private banks1the latest in a series that has been conducted annually since 2003reviews the recent financial results of over 100 institutions,gathering details on the surprisingly strong results that led to a record year fo