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BCS Plans Hiring to Boost Private Banking & Wealth Management Unit

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Barclays PLC (BCS - Free Report) intends to accelerate growth in its Private Banking and Wealth Management segment by increasing its headcount and hiring up to 100 advisers. This was stated by Sasha Wiggins, CEO of Barclays Private Bank and Wealth Management, in a presentation to analysts in London.

Rationale Behind Barclays’ Move

Barclays has identified roughly 4 million Barclays UK customers with investable assets worth £250,000 to £3 million who can avail enhanced wealth management services.

“The UK is a large market with client investable assets totaling some £3.5 trillion ($4.45 trillion), split across digital investing, affluent and private banking segments,” Wiggins stated.

"It's a significant opportunity, both for the individual but also for the economy," she added alongside unveiling the plans to raise headcount and enhance training of existing personnel.

In sync with this, Wiggins noted that the bank will also raise its annual technology spend in the business by more than 75% from 2021-22 levels. Further, she excluded any buyouts to boost growth and emphasized organic growth.

BCS aims to grow its wealth management capabilities to offset declining revenues from lending as interest rates come down. Other global banks such as HSBC Holdings PLC (HSBC - Free Report) have also taken this route. This September, The Guardian reported that HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers.
 
Alongside the UK, Barclays aims to expand its market share in Singapore, India and the Middle East. Last month, the bank announced the establishment of a new Private Banking booking center in Singapore. Further, this October, C.S. Venkatakrishnan, the company’s CEO stated in an interview with Bloomberg that the bank is considering returning to Saudi Arabia as it aims to capitalize on the kingdom’s rising need to access capital markets globally.

Wiggins dismissed a push into the United States because of intense competition and higher costs of entry.

BCS Zacks Rank & Price Performance

Over the past six months, shares of Barclays have gained 23.5% against the industry’s decline of 6.5%.

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

Business Expansion Initiatives by Other Banks

Last week, Fifth Third Bancorp (FITB - Free Report) announced a significant expansion plan to open more than 200 retail branches in the next four years, with a focus on fast-growing Southeast markets.
 
With this expansion strategy, FITB intends to enhance its customer experience through a combination of digital and physical infrastructure, fostering deeper banking relationships and driving sustainable growth.

Similarly, last month, Citigroup, Inc. (C - Free Report) made a minority investment in Pylon — a mortgage infrastructure provider. Financial terms of the investment were kept under wraps.

C’s investment in Pylon will help automate mortgage origination and provide interim funding to consumers until the loans reach the capital markets. This technology platform helps to reduce origination expenses.


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