Itaú Private Bank (PB) secured the most net new assets in a single year in its history in 2019, R$41bn (US$7.4bn), helping it burst through the R$500bn (US$90bn) assets under management (AUM) mark. It achieved this by listening to Brazilian customers and then using its findings to improve data usage, client experience (CX), analytical capabilities, communication and service, winning it the Outstanding Global Private Bank: Latin America trophy at the virtual PBI Global Wealth Summit & Awards 2020.

With 700 Itaú investment specialists spread over seven countries, serving 9,300 Latin American (LatAm) client families, the firm has an extensive client base. Last year it grew further, increasing its share of the Brazilian onshore market to 30.7%, a 1% increase, as it hit R$511bn AUM, making it double the size of its nearest competitor.

Revenue grew by 20% and net income by 36% last year, giving a five-year compound annual growth rate (CAGR) of 32%, with a 61.7% cost-income ratio showing expenses are under control.

Expanding the offshore operation is a future and present priority, so that it can strengthen its position as the bank for LatAm and Brazilian customers internationally. It’s targeting growth of 11% in three years to to US$35bn in custody. A decline in interest rates (IR) and appreciating assets is motivating investors to seek new opportunities and explore new risks at home and abroad, which are better understood and presented as the bank increases its data analytical capabilities.

The improvement in the results at Itaú PB is based on a series of initiatives guided by a well-defined strategy created in cooperation with the Bain & Company consultancy. Improving listening via a client interview process and then using the feedback to enhance CX was a key step. It led to easier multichannel self-serve options, which later fed into enhanced communication and better frictionless services via improved digital capabilities. The three-pronged plan also proposed new tactical and structural solutions (offshore, more digital & analysis-led comms), and continuous improvement processes. Two adjustments immediately resulted in more communication that was personalised.

Accordingly, data analysis enabled by the bank’s evolving digital capabilities became a way to study customer habits and consumption patterns. This allows services to be personalised so that investment advice is tailored to individuals, the tone and channel for communication and event invites is correct, while research reports and opportunities are properly targeted.

The bank now has a +75 net promoter score (NPS) customer loyalty and recommendation metric, and five pillars that it adheres to in its advisory model to achieve continued success:

  1. Structured investment process: this means constantly reviewing and updating the Itaú investment strategy. More than 70 professionals across seven countries contribute to the bank’s on-going analysis of the current economic scenario, helping to determine the optimal investment allocation.
  2. Platform offering: clients have access to a wide-ranging offer containing the best products and services available in the global market, on a convenient digital platform that is expertly curated in a one-stop-shop format.
  3. Customisation: of portfolios means specific personalised books are created for each client, after the overall investment strategy and product recommendations have been worked out.
  4. Long-term vision: delivers consistent results.
  5. Wealth planning: via an exclusive team of estate-planning specialists, trust advice, and so on means the bank is there at important moments in its clients’ lives.

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