A new state of wealth

At BNZ Private Bank, our customers’ have expressed a growing curiosity about the shifting wealth landscape. Let me walk you through what’s changing and how we’ve adapted in response.

There are many forces of change in wealth, but I believe the four biggest landmarks on the current landscape are high-net-worth (HNW) women, succession, the next generation and immigration. Research tells us that the HNW women population is undergoing one of the biggest changes in history, with close to twice the growth in the number of new women millionaires, when compared to men¹. We also know that the greatest wealth transfer in history is taking place. In the U.S. alone, $90 trillion of assets will move between generations², highlighting both the significance of succession planning and the transition of wealth to (mostly) millennials. These big global changes are echoed among our customer base here in New Zealand, and when you add New Zealand’s record high net migration levels³ to this picture, our customer base has never been more diverse.

It has been a remarkable year of growth for us, and this growth is directly in line with the growing needs of our customer base.

Not only do we offer our customers a full-service, full life cycle approach with a central point of contact through every stage of service delivery, we also bring innovative forward-thinking opportunities to our customers in the highest-growing sectors of our economy. We do this through the exclusive New Zealand market offering we call the Growth Sectors team. This big picture approach aligns with a wider definition of wealth that is increasingly important to future wealth holders, and one we believe offers a strong future-proof position for our customers and for our business.

Connecting to grow

Our family office and ultra-high-net-worth (UHNW) customers tell us that what occupies them the most is how the next generation will choose to invest. Supporting customers with both succession and next generation investment has been a big area of focus for our team.

This new generation of investors want to be part of the entrepreneurial ecosystem. Not only are they more likely to launch their own endeavours, but they are eager to invest in other ambitious New Zealand businesses, especially those with strong sustainability credentials. BNZ’s Growth Sectors team of banking specialists focuses on accelerating business growth via capital, connections and by growing capability in bankers and business owners. Private Capital is a key part of this offering, matching private investors with businesses wanting growth equity. This is of standout interest to the next generation who share a broader wealth definition, as my colleague Linda Sturgess, Head of Private Capital points out;

“Our portfolio clearly reflects that the next generation want long-term investments that count toward positive environmental and social outcomes, as well as financial return.”

To help deliver on this, we host regular events. These are for family office, wholesale investors, and international investor migrants to connect with leading-edge, future focused BNZ businesses looking for growth capital, connections, and capability.

The new shape of us

Over the past three years our Private Bank team has grown in multiple ways; we have colleagues from more diverse backgrounds and we can now engage with our customers in eleven languages.

Our female customers told us they wanted more access to female advisers they can connect to. So we have focused on leading our gender equality from the top down and while all our appointments are made on merit, we currently have a 60% female employee population and a 100% female leadership team. This is remarkable in the context of diversity for the sector overall, where female representation in leadership is around 14%⁴.

Because of the new shape of us, we have seen significant customer growth across international investor migrants, HNW women, C-suite, and next generation investors. All these new faces could not be more welcome at the table, and I believe we are well on our way to becoming the Private Bank of choice for New Zealand’s current and future wealth holders.

If any of the changes here resonate with you, I warmly invite you to connect with me or any of our local specialists to explore them further. Our Private Bank customers are also invited to BNZ Private Bank’s Quarterly Investment Briefings where we cover economic updates and implications for investors. Our 30 July 2024 briefing will feature BNZ’s Chief Economist Mike Jones, alongside expert advisers from the investment community. Please contact us to register.

¹ JBWere The Growth of Women and Wealth, March 2024
² The annual wealth report, Knight Frank, 2024
³ Stats NZ, Net Migration Report, February 2024
⁴ OMFIF Gender Balance Index, 2023

Any views expressed in this article are the personal views of Jenna Broadhurst and do not necessarily represent the views of BNZ, or its related entities. This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.