Is wealth management Scotland's new growth area?

With seemingly ever-increasing horrors engulfing Scotland's banking sector, it's natural for the financial services industry as a whole to look for positives. Wealth management, not traditionally a significant area of focus north of the border, has weathered the storm well and is now tipped to grow even more.

One endorsement comes from Scottish first minister Alex Salmond, who believes that the sector offers a "good opening" for the country's financial sector to build of its existing strength in corporate, pension fund and investment trust management.

"We have never really specialised until very recently in wealth management in Scotland," he said. "We have the capacity to do so, and I think we have got substantial opportunities in that field."

It's easy to see where this enthusiasm stems from. As well as some recent arrivals north of the border, such as Ruffer Investment Management and Brook MacDonald, existing players like Adam & Co, Clydedale Bank and RBS have been recruiting for private banking roles. Barclays Wealth is also planning a new Aberdeen office, and Kleinwort Benson has confirmed it is expanding its Scottish operation with additional private bankers and support staff.

"It's a very big growth market in Scotland, and a lot has been done to drive the industry in a more dynamic direction," says Cath Tillotson, partner, head of research at wealth management consultancy Scorpio Partnership.

Still, while any signs of growth in the current climate are not to be sniffed at, it's doubtful whether astronomical levels of recruitment will occur. Most of these firms are boutique operations, which are building a presence on the ground to be closer to their Scottish customer base.

As Ruffer's investment director Hamish Baillie told Insider Magazine: "We've always had a strong customer base in Scotland and the north of England so this move is about looking after our clients more efficiently."