Barclays Plans to Hire 100 Advisers for Wealth Management Growth

Barclays PLC (BCS - Free Report) is making strategic moves to enhance its Private Banking and Wealth Management division. The bank plans to hire up to 100 advisers, as announced by Sasha Wiggins, CEO of Barclays Private Bank and Wealth Management, during a presentation to analysts in London.

Reasons for Expansion

Barclays has pinpointed approximately 4 million customers in the UK who have investable assets ranging from £250,000 to £3 million. These customers are potential candidates for advanced wealth management services.

Wiggins stated, "The UK hosts a sizable market, with total client investable assets reaching about £3.5 trillion ($4.45 trillion), covering digital investing, affluent, and private banking sectors." She further mentioned, "This represents a significant opportunity for both our clients and the broader economy." This insight accompanied the announcement of additional hiring and a focus on improving the training of current staff.

Corresponding with this strategy, Wiggins indicated that the bank intends to increase its annual technology expenditures in this sector by more than 75% compared to 2021-22 levels. She mentioned that this plan does not involve any acquisitions for growth, stressing that Barclays is committed to organic expansion.

With these moves, BCS aims to bolster its wealth management sector to counterbalance decreasing revenues in lending, which is a response to declining interest rates. Similar strategies are being adopted by other global banks; for example, HSBC Holdings PLC (HSBC - Free Report) has announced plans to strengthen its UK wealth and private banking operations by bringing in more relationship managers.

In addition to the UK, Barclays is targeting growth in markets such as Singapore, India, and the Middle East. Last month, the bank divulged plans to establish a new Private Banking booking center in Singapore. Furthermore, this October, C.S. Venkatakrishnan, the CEO, mentioned in a Bloomberg interview that Barclays is contemplating a return to Saudi Arabia to leverage the country's increasing demand for global capital market access.

However, Wiggins dismissed the idea of entering the U.S. market due to excessive competition and elevated entry costs.

Barclays' Stock Performance

In the last six months, Barclays shares have experienced a rise of 23.5%, contrasting with a 6.5% drop in the industry.

Currently, BCS holds a Zacks Rank of #3 (Hold). You can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Initiatives by Other Financial Institutions

Recently, Fifth Third Bancorp (FITB - Free Report) unveiled significant plans to expand, aiming to open over 200 retail branches in the next four years, primarily concentrating on rapidly growing Southeast markets. This initiative is designed to improve customer experience by integrating digital and physical infrastructures, which will deepen banking relationships and drive persistent growth.

Moreover, last month, Citigroup, Inc. (C - Free Report) made a minority investment in Pylon, a provider of mortgage infrastructure, although the financial details of this investment were undisclosed. Citigroup's investment aims to facilitate mortgage origination processes and provide interim funding to consumers until loans are positioned in capital markets, thereby reducing origination expenses.

Barclays, Wealth, Management