Wealthy Clients Suffer ‘Buyer’s Remorse’ as Private Banks Standardize Investment Models

Why Wealthy Investors Are Souring on Private Banks

Wealthy clients are increasingly experiencing “buyer’s remorse” as large private banks adopt more standardised, product‑driven investment models, according to Rob Agnew, head of Isio’s Private Office. Speaking to FT Adviser, Agnew explained that as banks focus on scaling their discretionary businesses, the conversation becomes “product‑led” rather than tailored to the individual.

Agnew—who previously worked at Deutsche Bank and Barclays—noted that while some clients remain unaware or satisfied, “a lot were very unhappy with the outcome.” This has prompted more discerning investors to ask, “What is good for me, not what is good for the platform I am talking to?”

Isio’s Private Office occupies the space between a traditional private bank and a family office, serving clients with £20mn to £500mn in liquid assets (the average client has £120mn under advice). Those clients are mostly entrepreneurs, charities and endowments, not inheritors. Agnew argued that standardisation is particularly ill‑suited for this tier of wealth, where individuals are “price makers, not price takers” and demand genuine customisation.

Isio’s approach, by contrast, is independent and holistic—clients are encouraged to consider whether they truly need venture capital, private markets, real estate or infrastructure assets, and to clarify where they want their money to go. “We can afford to say to someone holistically, ‘What is it you need? Let’s design what you actually need, not what you don’t need,’” Agnew said.

Behind the Shift: What This Means for Private Banking

How Private Banks Are Losing Their Edge

The drive to scale is reshaping large private banks’ service models. When a new management team arrives, Agnew observed, its first priority is to “scale their business and reduce cost.” That leads to a proliferation of model portfolios and standardised asset allocations—an approach that may work for mass‑affluent clients but frustrates ultra‑high‑net‑worth individuals who expect their wealth to be handled with a far finer touch. The friction is not just anecdotal: it is creating a pool of wealthy, financially literate clients actively seeking alternatives.

The Rise of the Independent Private Office

Into that gap steps a new breed of independent advisory firm. Isio’s Private Office offers a model that is independent of any bank’s product shelf, has no time pressure to close a sale, and starts by asking what the client truly needs. This resonates with entrepreneurs who demand transparency and control, and who often already have an adviser or their own financial experience. The model leverages the client’s desire to understand “all the nuts and bolts”—a stark contrast to a private banker who simply presents a product.

Who Stands to Win—and Who Loses

For traditional private banks, the risk is a slow erosion of their most profitable clients. High‑net‑worth individuals generate significant fee income; if they defect, revenues from discretionary management shrink. On the flip side, banks that segment their offerings and create genuinely bespoke solutions for the £20mn+ cohort could differentiate themselves and capture assets that would otherwise move to family offices or independent advisers. Clients in this segment increasingly care not just about returns but about the impact and destination of their money—an area where a cookie‑cutter approach falls especially flat.

For Wealth Holders: Five Ways to Regain Control

• Audit the model. If you have £20mn or more in liquid assets, request a detailed breakdown of how much of your portfolio mirrors a standard discretionary model versus being truly customised to your goals.
• Interview your banker differently. Instead of asking about past performance, ask how the bank would alter your exposure to venture capital, private markets, real estate or infrastructure in response to your personal preferences—not the firm’s product shelf.
• Demand the impact lens. Entrepreneurs and endowed families increasingly want their money to achieve specific, measurable outcomes. Quiz your wealth manager on how your personal values or charitable aims directly shape the asset allocation.
• Consider an independent private office. Firms like Isio exist precisely to sit between a private bank and a family office, offering a bespoke, pressure‑free planning journey that starts with “what you need” rather than “what we can sell.”
• Check ongoing transparency. Ask for a client‑friendly breakdown of fees, discretionary overlays and any conflicts of interest that arise from product‑led recommendations—then benchmark it against the independence a private office can provide.