Mark Thompson, Boston Private Bank & Trust Company President and CEO, explains how private banks help create wealth and more
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Welcome back to -- Sunday night at what I series I'm Kristy Lee what is a private bank how did they help create wealth and what and where they go at it to keep the customers satisfied. And how do you handle it when you make a mistake with a client CEO -- private bank and trust company -- on CEO corner. CEO corner has brought to you by mass mutual financial group. Now one NEC and it. The region's top CEOs -- -- -- and experience on the issues and opportunities facing New England businesses this is CEO quarter. Time to be in -- the economy is slowly but many -- shortly in recovery mode. All kinds of rules and regulations are coming down after the Dodd-Frank financial reform act. And everyone is wondering what the federal razor finally begin to wind down some of the many measures have been taken to backstop and stimulate the economy. Boston private bank and trust company among those paying the closest attention we'll get their CEOs take on the economy and the banks mission right now. Good evening and welcome -- you know. Corner and Peter how after what the vast majority of Americans. Chances are probably pretty slim you -- about how much you love your bank or how great their customer services for you but. For small mostly very rich segment of the population there's an alternative that is all about customer service and close personal -- it's called private banking. Here for -- deeper look at financial services what makes for great customer service and and an economy and more Mark Thompson president and CEO -- private bank. And trust company mark thank you so much for coming in. Great thank you Peter great to be here appreciate the opportunity so it's a natural first question people must ask you all the time what is a private bank as opposed to a presumably public back. Well you're right Peter and I can only tell you how many dives over this in my career people ask me gets what is ate right it and I. Today credit hey he is much different than it used to be you know as we look at private banking. And financial well we have found its a reality for a much larger and dynamic group of people. You know we look at -- hey -- Israeli. Client profile who are your clients and it really centers around wealth creation. You have those that are ready created wealth during their lives and the individuals and families are very much part of our client base advised that racket bag but in addition. Wealth creation is -- very important part of the overall right -- banking business. In our strategy at that -- eighteen institution. We also feel really starts with our people we have invested in built a team of highly professional. -- aching experts in wealth management experts. To manage quiet relationships. And offer commercial banking services residential mortgage services your typical. Deposit products and services. And also leading to the privilege in the opportunity. For us. Didn't manage our client assets and there are while management needs as they develop accumulate wealth. And where where there it -- there and trusted partner all the way throw that financial asset light cycles. So those are typical minimum amount the need to get in the door is is sort of a million dollars and up normally. Well we really try to target both. The the minimum come -- also the relationship. Opportunity. Every relationship we have we look at building partnerships we have our clients so sometimes. You know we might look at a little bit lower end of that range but typically low seven figures to hit eight figures would be one of -- wealth management clients. And then oftentimes the businesses. The the argument -- organizations and private partnerships. That the profile of these clients run in alone would be represented in the overall relationship we think it's very important. To be able to deliver for our clients he -- across enterprise expertise ranging anywhere from. Are banking platform to our investment management capabilities. And also well advisory services. To really develop long term enduring partnerships. Went through a few putts Paxson numbers buster -- bank and trust company founded in 1987 headquartered in downtown Boston -- post on the square. Now 24 offices -- in Massachusetts and California 600 employees you mentioned 26 billion dollars. In assets. Four point one billion dollars and assets. Under management. So you're locations. This interesting mix you were parent company for -- on a bank and party -- out of that you were in Seattle for time really consolidated on Boston San Francisco. -- -- told us what the rationale behind that how you pick those markets. Year well of course Peter. Boston private bank was founded right here in Boston we remain a locally headquartered institution. With a deep commitment to Boston in the -- of lies in the area. We love our markets where we're in Boston. Where in this differences go Bay Area. In addition to Southern California and the greater LA market. We feel it demographics. Really support our private banking strategy in our growth strategy as we both grow our business. And also expand our client relationships. In market share. What's interesting if you look at Boston and the dynamics of Boston's economy we have world class hospitals medical research institutions. Healthcare technology. Manufacturing. And that's really supports a vibrant economy and also creates an economy and create wealth and jobs. As we look to expand as we get in San Francisco today which was the company's first foray into national expansion. Many of the same dynamics exist in San Francisco in an LA there is very very strong. Population of well the individuals. And also well creators. The businesses the entrepreneurial organizations. And private partnerships and often support. These organizations and I I I would be remiss if I didn't mention we also look carefully at the sports teams scored Boston's got some great sports teams. And -- San Francisco and southern cal were wondering whether or not the World Series -- am off two out of three markets that we currently -- It's facts well said. So. And -- eager to talk a little bit about what the experience been like for somebody -- is familiar with dealing with a Bank of America -- TV -- -- local XYZ. Savings bank. How will things be different for them if they Europe customer Boston -- Well let me share with you moved to what I feel are great client service experience is that we recently had advised and private bank. The first one of our clients called into our private anchor in the morning. And then informed this anger that he was on his way to Europe an afternoon flight and he had lost his debit card. So he was in dire need of a debit card before he flew to Europe where -- business draft. Normally the process takes a minimum of 48 hours are -- baker decided. To hop in his car -- data RI when the facility processes these debit cards. Got the debit card for our client race to the airport -- our client at the airport as he was boarding the plane for his track. The client is absolutely effusive. On the client service we were able to deliver for that particular situation. Got a situation which speaks to the wealth creation. That is very it's a very important dynamic and hold private banking business as I see it. We have a long time privately owned business located up on the North Shore. Company founded in the late sixties has grown to over a 120 million dollars of revenues. And also know as grown its employment base into the low low six figure range. Very very impressive company. It had its commercial banking with -- they were contemplating the owner was contemplating selling his firm. The same time the leadership. Was contemplating a management buy out. We have always been an advisor for this company in the family ownership of the company. Disgusting things like succession strategies. Whether or not it would be an intergenerational transfer of the company. And also the tax consequences. And also -- Philanthropic -- strategies for the family. So it really turned out to a very positive ending. With a management buyout and the owner very happily sold his business. And it created a wonderful opportunity ferocity wealth management company. To me at -- that the gambling funds in advise him further on somebody. Aspects of having significant well. Dickerson. -- -- only people who are wealthy get that way because they're Smart about money I'm sure sometimes people will hear about -- -- like this and think this sounds fantastic but I worry there must be a lot of fees associated with that. -- expense how do you sell the value proposition to them just how expensive is it to pay for some of this great -- touch customer service. Well -- -- our philosophy the number one. We've always believed. We're not going to nickel and dime our lines. We will price. All of our products and services very competitively. And at the other end of the spectrum. We're not gonna be nice -- you rate the lowest B we feel we add tremendous value for our clients. And we we find our clients. I vary vary as satisfied and and how we approach the east schedule in the value we provide for the overall relationship. So we should go to break but to come back -- a little more about what you can learn about customer serve from -- private also look at the -- -- the economy and some of the regulations come and then actually after a break.