Jay Welker, CEO of Wells Fargo Private Bank, sits down with Reuters Insider following his appearance at the 2010 Reuters Global Private Banking Summit and speaks about the firm's expansion plans.
Both Fargo private banks CE OJ Welker has been speaking at the writers -- about his company's expansion plans he joins me now good to see you. Nice to be here thank you. Of groceries -- in new client acquisitions and in what clients that particular. Are you seeing a lot more placement within the -- Well what we have been growing. We have been growing both in terms. New clients who are -- to Wells Fargo. To have been attracted to us or both I think that the strength of Wells Fargo is well this the breath and depth of our capabilities. But we've also been doing a lot more business with our existing clients deepening those relationships doing more with those books as well. Are -- an expansion for instance with the ultra high net worth or other classifications. But he has been across the board our focus -- in the high net worth and the ultra high net worth space. And and while. There hasn't been lots of new wealth creation going lines or for anybody in this country for a few years. That group is is still very much needed to kind of services that we do. And we've been an attractive place for them to to be able to do business now more than ever. How expenses it to bring on this past tense. Well cost of acquisition and our businesses is not immaterial. These are relationships that you don't -- clients over time. These third -- You know people are not going to move that wealth management business to you after quick thirty minute conversation so. You know the acquisition time to develop client. Can be anywhere from you know several weeks to in some cases several years before you Linda. You know building relationship. We have environment now where it's more costly to business we have at this point -- investment returns clients as he spoke still. That's some real risk of versions of that experience that. How are firms in this wealth management sector trying to restore profitability. To affirm yes. What we've got a -- were fortunate we have a very diversified business model we are not just an investment shop. Were a diversified. Wealth management firm so. You know private banking investment management fiduciary capabilities. Planning capabilities brokerage capabilities. All very critical to what we do. And to be honest we don't sit back and say. You know which one of these we wanna go pursue more than others it's really about currently pursuing relationships and taking care or clients. So I think it in terms of returns that the best thing that we can do in terms of that is making picture that were attracting the right kind of clients. And that we're doing a great job -- not just retaining those client relationships but deepening this client relationships and and thereby as we expand the relationship. Hopefully that's really good for our clients because we're adding value on and it helps our returns as well. Let me ask about your expansion plans to mention the summit the success -- in the East Coast. What's attracting. New hires to the firm is it salary bonus package how are you finding success in terms of winning those people over. I think the primary impetus. For people joining us right now is. Clearly were equality firm. With a great reputation in coming through -- through the financial tsunami. You know being. Employed by a firm like Wells Fargo is a really good thing right now. In addition at our business model we have had a business model in place for eight years now. We're not one of those firms that changes. Sort of this is tacking into the wind left and right every eighteen months in -- of strategy and I think that is something. Did advisers and specialists are very much looking for as well. Thanks so much for your time appreciate it thank you. Our thanks to CEO Wells Fargo private bank I'm Rhonda -- this is writers.