Macroeconomic growth leads to increased interest in investment.
After the harsh 2022-2023 period, which saw economic activity affected by the COVID-19 pandemic, the Russian invasion of Ukraine, and the economic contraction in Germany, 2023-2024 saw a recovery in Central and Eastern Europe (CEE) and South-Eastern Europe (SEE). As a result, consumers spend and invest more.
“Our economies are steadily adapting to evolving global dynamics,” Beata Javorsek, chief economist at the European Bank for Reconstruction and Development, said in comments accompanying the EBRD’s September Regional Economic Outlook report.
According to the European Bank for Reconstruction and Development, growth in Central Europe and the Baltics in the first half of 2024 rose by 2% year-on-year, and is expected to rise to 2.3% for the whole of 2024, versus 0.2% for the whole of 2023. The Southeastern EU countries (Greece, Romania and Bulgaria) recorded growth of 1.7% in the first half of this year and are looking at growth of 1.9% in the first half of this year. 2024. Meanwhile, inflation has fallen, averaging 5.8% in EBRD regions in July this year, compared favorably to the 17.5% rise recorded in October 2022.
“The decline in inflation and the recovery in real wages provide encouraging signs,” Javorcik added.
Best Private Bank: Erste Private Banking
Erste Bank’s Erste campus is located in the heart of Vienna’s historic Belvedere district and has 4,500 employees from 20 different locations in Vienna. This campus symbolizes the Group’s confidence in private banking, and Erste Bank is recognized as Private Bank of the Year in Central and Eastern Europe. The campus includes Financial Life Park, home to Europe’s largest financial education initiative to encourage more people to invest. As an organization, Erste has already succeeded by increasing its client base of high net worth and ultra high net worth individuals.
During 2023, the bank achieved a new milestone in customer acquisition, increasing by 7.2% to just under 25,000 customers across the Central and Eastern Europe region. Assets under management (AUM) rose 7.5% to €33.7 billion (about $35.6 billion) during the same period, rising further to €34.9 billion at the end of the first quarter of 2024. Erste Bank is now a major brand recognized throughout Central and Eastern Europe. It has branches in major cities throughout Austria, Croatia, Czechia, Hungary, Romania and Slovakia. Erste now offers clients asset management in private market investments, including private equity. The bank also provides access to exchange-traded funds and exchange-traded commodity investments through George’s online banking app.
Best Private Bank for Sustainable Investment: OTP Bank
Last year’s winner of Best Private Bank in CEE took the stunning step in July 2024 of withdrawing from Romania, the fifth-most populous country in CEE (and with significant private banking potential) because the bank could not expand its operations there. OTP Asset Management was sold to Banca Transilvania. OTP says it will devote its energies to the other 11 countries to which it provides private banking services. The bank is often a market leader in Central and Eastern Europe, Southeastern Europe and Central Asia. In total, it has 35,600 clients, with assets under management of €10.2 billion.
OTP pushes private bank clients toward environmental projects, green financing, and other sustainable opportunities; Therefore, sustainable investment remains a priority. The Group’s ESG strategy has now been rolled out across subsidiary banks that align with their local objectives. New dynamic digitalization solutions are part of the ESG approach, while other recent initiatives include a green debit card made from recycled materials exclusively for private bank clients.
Best private banking digital solutions for clients: Akbank Private Banking
Akbank has eight branches across Turkey and has been one of the most famous brands in Turkish banking since the bank was founded in 1948. Akbank prioritizes digital solutions at all levels. The uptake of Akbank’s mobile investing module has been overwhelming, with 97% of equity clients and 70% of mutual fund clients executing transactions through it. The bank’s Wings and Black Wings cards give private bank customers various benefits depending on the amount they have invested through the bank, including free flights, railway tickets and airport lounge access. Axess Mobile is a new Akbank app that allows private bank customers to access goods and services depending on their mood, with artificial intelligence enabling unprecedented personalization.
Meanwhile, Akbank’s digital customer base reached 11.2 million by the end of 2023, an increase of 2.4 million, with more than half of new customers acquired via digital onboarding.
