In today’s podcast we talk to Chris Snyder, CEO and co-founder of Private Client Resources LLC. He created this company together with Joseph L. Dionne based on a frustration that both had with visualizing their holdings.

They launched Private Client Resources to build a management information system for wealth management, similar to the systems they were used to in their former careers (Mr Dionne retired as Chairman, President and CEO of The McGraw Hill Companies and Mr Snyder founded Loan Pricing Corporation, which he sold to Reuters in 1994).

Enjoy this exciting and informative podcast about reporting and pricing in private banking and wealth management (pls find the slides Chris refers to below).

In the podcast Chris Snyder explains the first chart below and shows that there is little relationship between how complicated the wealth situation of a person or family is and how rich they are. With the second chart he highlights that the average wealthy client is becoming more complicated. The consequence of this is that wealth management in general requires more sophisticated information and reporting systems to help the client understand his wealth.

The third chart below indicates the negative side effets of the linear pricing mechanisms that we find in private banking today and which are simply based on how wealthy a client is. It shows that banks undercharge their most complex customers and overcharge their least complex customers. Chris suggests that the market should move towards a healthier pricing mechanism based on complexity.

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