Wells Fargo has been pushing for quantity over quality in its private bank, leading to a reorganization in late 2020 that saw the Abbot Downing unit, which caters to its wealthiest customers, merge into the wider private bank. Several sources spoke to Insider about the changes and what it has meant for the bank’s specialized practices for the ultra-rich, which nearly everyone agreed was handled poorly. Wells was trying to apply a one-size-fits-all approach to a very individualized market, leading to issues. The shift, however, did earn understanding from many due to Wells’ philosophy — it’s easier to grow when dealing with the mass affluent than it is for the ultra-rich, who demand more custom service.
This story, written by Hayley Cuccinello and Reed Alexander of Insider, points to Wells Fargo’s decision being a mistake considering how its competitors — such as Morgan Stanley and Goldman — are so aggressively pushing into the market. It may leave the bank regretting its decision down the line.
Wells Fargo is a giant American multinational financial services company. It is the world’s fourth-largest bank by market capitalization and the third-largest bank in the United States. It offers a huge range of consumer and commercial banking, securities brokerage, asset management, mortgage, insurance, and consumer finance services.
Kim Posnett is an executive at Goldman Sachs, a Wall Street firm and leading global investment bank. Posnett was recently named the head of Goldman’s TMT (Technology, Media, and Telecommunications) Group, a role in which she works to advise and provide capital to companies in those industries. Her elevation to the role comes as part of broader changes made among Goldman’s senior dealmakers. Known to be an industry expert, Posnett is considered by colleagues to be an impressive leader and her rise is being closely watched in the financial world.
