Suddenly rich

What does my bank offer if I have come into much money unexpectedly or have been wealthy for a longer time already? Two experts from wealth management give an overview.

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Maike Steinmüller

Commerzbank

Cash
Understand the needs of wealthy clients: Marco Joch Regional Manager Wealth Management & Private Banking and Yasmin Lutz, Head of Asset Management.

Marco, who doesn't dream of winning a lottery... does my bank actually notice that when my account balance increases from 1,000 euros to a wonderful 1 million euros?

Marco Joch: Yes, for sure. "Attention! Oversized Credit Revenue" reports the system when a revenue does not match the customer's usual transaction behavior. It does not matter whether a regular receipt of money amounts to 1,500 or 50,000 euros. The decisive factor for us is the clear deviation from the rule.

In order to comply with all regulatory requirements, we require the partner bank, the customer or the customer to provide proof of the origin of the money. However, winning a lottery is the absolute exception. It is usually a matter of real estate or business sales, a gift or an inheritance.

For years, more and more wealth has been passed on more and more often, and the trend is rising. A lot of money needs to be managed. You probably have all hands full?

Marco: My team and I really can't complain about too little work. The number of our wealthy clientele continues to grow, especially through referrals. Many of these include corporate and business customers. They increasingly let us manage their private assets. Hereditary property is, of course, also an issue here.

We have fewer customers who have become rich from zero to a hundred. But those who need our service all the more. Once the first wishes have been fulfilled, the goal should be to preserve and increase the new assets. If you approach this well-structured, you will ensure your prosperity and that of your descendants.

Yasmin, there are many possibilities. One of them is asset management.

Yasmin Lutz: I have neither time nor desire to keep an eye on the development in the financial markets, who lets us manage his assets, means: He or she commissions our professionals for this and, depending on the form of investment, also has his own personal portfolio manager.

From a minimum investment amount of 250,000 euros, we have the right offer for every request. The experts of our asset management company Yellowfin are available to manage large assets of over 30 million euros. And we also offer over-the-counter investment opportunities with our cooperation partners and through Commerz Real, such as in the areas of private equity and renewable energies.

Moreover, we offer asset management that takes into account strict sustainability criteria. And by 2025, the proportion of sustainably managed portfolios in all our asset management companies will continue to increase. An important aspect. Especially for the younger generation.

So young empires such as start-up founders or Internet millionaires are also interested in Commerzbank?

Marco: Yes, of course. You also like our sustainability strategy. We are digitally and personally there for our customers and have over 150 years of expertise in financial matters. There are also few providers that offer such a wide range of services: From investing in asset management to financing and company succession. Great individual service included.

By the way, I strongly advise new customers to get the opinion of other providers and not just that of Marco Joch. Some are running on multiple tracks. However, I observe that more money is being transferred to us over the years.

Is the younger generation not more likely to rely on digital asset management, which is also likely to be more cost-effective?

Yasmin: If this is the case, it is more likely to be used for smaller investments, even as a comparison to other forms of investment. However, a robo advisor cannot take a holistic view, structure and optimize a complex asset. Analyzing all aspects still requires a person with experience and empathy.

Marco: Exactly. This is a prerequisite for our long-term business relationships, often over two or three generations. Our wealth management client base is extremely sensitive to tax considerations when it comes to wealth planning. That is why we always call in people of their trust, tax consultants or even auditors. The topic of corporate succession, for example, will be a central one in the coming years. Wealth transfer, provision and protection, foundation or estate arrangements are other.

Which would also make us look back at the issue of heirs...

Yasmin: For our mandates in asset management, the personal exchange of consultants is important not only with the customers themselves, but also with the children or even grandchildren in the sense of: You can also rely on our expertise as "asset strategists" in the future. Money, as we all know, is always a highly emotional thing. And trust in this context the magic word.

Marco: I would like to put it this way: We tailor a tailor-made suit for every customer until it fits perfectly. This is our service in wealth management and private banking – for those who have been wealthy for generations and for those who suddenly become rich.

Supporting wealthy customers at Commerzbank

  • 135 billion assets under management
  • Private and business holistic care from a single source
  • Tailor-made offer: From investment to financing to company succession
  • Individual solutions for particularly complex asset structures
  • Personal advice at 220 premium locations in Germany

Portrait of Yasmin Lutz

Yasmin Lutz

Head of Product Management Asset Management/Asset Management

Since 2017, she has been responsible for the product management of asset management. After completing her studies in economics, she joined Commerzbank in 1999 in business with wealthy customers. This was followed by positions in the staff of Private Clients and Wealth Management, as a board assistant and as head of business development.

Portrait of Marco Joch

Marco Joch

Director Wealth Management & Private Banking, Region Bonn

He has been responsible for wealth management in the Bonn area since 2015, and since the end of 2022, he has also been responsible for private banking. After training at Commerzbank, Marco worked as an investment consultant. From 2005 he held various management positions in the private customer business, most recently as regional branch manager in Paderborn.

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