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Barclays plans major banker cull in wealth service overhaul
by Danielle Levy on Sep 26, 2013 at 12:36
Barclays is planning to make potential substantial cuts to its private banking headcount, as the bank overhauls the way sub-£500,000 clients are serviced.
It is understood there could a reduction in private banking headcount of up to 40%, as the bank launches a consultation period this week which is set to last a matter of weeks.
The move comes as incoming chief executive Peter Horrell launches a strategic review that aims to refocus the business and reduce the cost-income ratio of Barclays' wealth & investment division.
As a result, the bank is moving clients with portfolios under £500,000 to a new dedicated proposition within the wealth & investment business called Private Clients. These clients will receive a softer touch service than they were previously used to, resulting in a reduction of private banking and analyst roles.
In a statement, the bank said: 'We are reducing complexity in our business, competing in the markets where we have scale and serving those clients whose needs we can best meet.
It added: 'We are making changes to the way we segment clients and ensuring that we have appropriate and sustainable service models for each segment. In the UK it is likely that this will cause some roles to fall away.
'We will conduct the appropriate consultation processes and will ensure that we do everything we can to support those affected.'
It is understood that no clients below £500,000 will be pressured to leave the bank.
The move fits with new chief Horrell's admission earlier in the week that he was taking 'tough decisions' to refocus the wealth division's strategy, with direct-to-consumer and high net worth segments highlighted as growth areas.
Horrell (pictured) said the bank’s new strategy in the wealth division would leverage off capability and expertise in corporate, retail and investment banking and be more disciplined about the clients they want to target – even at the risk of losing short-term revenue in some areas.
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