As the world of private banking expands to the next generation of clients, non-traditional sectors are rising while the need for a personal touch remains the same, says 27-year-old Charles Desnos at Quintet Private Bank.
Although Charles Desnos has always been attracted by the world of business, private banking wasn’t a childhood dream, he told Investment Officer. “As a kid, I thought that I would be a lawyer,” said Desnos, who grew up in Paris but spent time in the French West Indies, Indonesia, Portugal and Luxembourg as a child.
Though he studied corporate finance, economics, and financial markets while earning his master’s degree in general management and strategy consulting, he saw banking as just a part of the financial industry. It was only once he started his professional career that Desnos discovered the job of a private banker. Following stints at Edmond de Rothschild and Banque Internationale à Luxembourg, he joined Quintet in September.
Now Desnos is convinced that “banks are one of the best places to build a career,” allowing people to get a “full picture” of the business world. Beyond building and maintaining relationships with clients—his main focus—there are roles in research, investment, legal affairs, marketing, human resources and more. To encourage more people to get into banking, “il faut donner envie d’avoir envie,” he said, quoting Johnny Hallyday and Jean-Jacques Goldman: you have to make people want to join the industry.
Desnos sees banks in Luxembourg as especially international, with “open-minded” colleagues. He points to the flexibility and opportunities for young people to evolve, comparing his experience with that of a friend working at a bank outside Luxembourg who now feels “stuck” in the department where he started.
From CEOs to e-sport champions
Working in the banking sector has also given Desnos a front-row seat to the Great Wealth Transfer. Roughly 84 trillion dollars will be transferred to heirs in the next few decades. At the same time, a new generation of clients who have made their fortunes in more non-traditional sectors is seeking wealth management services.
Client segments are expanding, and for the private banker, “it’s definitely easier to connect with younger people.” For instance, Desnos’ youngest client is in his mid-thirties, while one of his prospective clients is an e-sports player in his early thirties. E-sports competitions started in the 1970s and have become increasingly mainstream. “Thanks to sponsoring, e-sports players can earn over a million a year,” he noted. Regardless of the client’s age, he added that it is key to be able to “put the right people in front of the client” to be able to serve their needs.
AI: the perfect sidekick
A lot of the day-to-day work of a private banker involves time-consuming tasks like handling documentation or complying with regulation. Desnos uses artificial intelligence tools to both learn about new subjects and save time. “It’s helpful for getting a global picture of a topic,” he said, describing AI as the “perfect sidekick”, while cautioning that AI tools cannot be fully trusted. In case of doubt, he always checks with an expert to ensure that he provides accurate information to clients. “We are in the business of trust,” he emphasized, and maintaining that trust is crucial.
Desnos certainly doesn’t expect to see human private bankers replaced by robots in the near future. “We are humans, and the clients are coming to talk to humans,” he said, emphasizing the importance of personal contact. “Today, lots of clients can manage their assets with online banking, but they also want to have someone to call. They want to know their private banker. We’re like the family doctor, but for the family’s patrimony.”
There are also things that an AI chatbot will never be able to accomplish. Just a week before, a client in his eighties based in Luxembourg City had called Desnos to ask whether he could drop by for a visit. The client needed help navigating an online banking program, and his children were not nearby. Desnos was able to resolve the issue, and stayed for coffee and a conversation. “This human aspect won’t disappear,” said Desnos. Private banking, he emphasized, “is more than just a service.”