Is the suitcase banker alive and well?

The era of the suitcase banker making frequent business trips to the Middle East may be long gone, but wealth managers aren't averse to employing MENA-focused private bankers in places like Geneva and London. So, what's the rationale for this?

Developing on-the-ground contacts is integral to the success of wealth managers in the Middle East, and more international firms have been bolstering their local presence in recent years to capitalise on this.

However, as Barclays Wealth's recent appointment of Youssef Affany - a Geneva-based senior private banker, managing director for the MENA region - demonstrates, it's not always necessary to be close to the action.

A Barclays Wealth spokesperson says having MENA teams in places like London or Geneva is merely responding to client demand. Certainly, it's not the only firm to do so - Credit Suisse and HSBC both have MENA private banking teams outside of the GCC, to name just two.

Sebastian Dovey, managing partner at wealth management consultancy Scorpio Partnership, says: "Banks typically have a matrix structure so there will be an individual in Switzerland who is effectively responsible for a specific market team and actually services the clients with the offshore financial solution. Meanwhile, there is a local head who is responsible for doing the business development and market presence."

But Rodolphe Morteuil, managing director of wealth management headhunter McKinsey Mortreuil Clarke, suggests there's a simpler explanation.

"High net worth individuals in the Middle East go to London for shopping and Switzerland for skiing, and want to status symbol of having a private banker in these countries - especially a Swiss banker," he says.

In reality, he adds, it's actually more economical for international private banks to service clients from core markets, rather than at expensive onshore offices in Middle East markets.

"There's also a limited pool of talent in the Middle East, which is very mercenary when it comes to moving jobs for more money," he adds. "It's largely senior private bankers with a large client book who can service the MENA region from Western markets, where there's often a better calibre of people to support them."