BTG Pactual’s Mariana Oiticica Steers Private Banking Through Generational Change

Younger, globally oriented clients are turning to offshore investments, making strategic and flexible wealth planning more critical than ever.

Global Finance: How does increased demand for offshore investments in Latin America impact the long-term strategies of high-net-worth clients?

Mariana Oiticica: This is increasingly vital for their long-term strategic planning. These investments provide important benefits, such as risk diversification across various geopolitical landscapes and access to sectors like technology and artificial intelligence that may be less developed domestically.

Investing abroad effectively reduces exposure to local economic and political risks. It allows customers to benefit from the growth of global technology leaders and other thriving industries abroad. Such a strategic approach helps maintain well-diversified, competitive and resilient portfolios.

Girlfriend: Is this linked in any way to a broader generational shift?

Oiticica: Young investors, often with an international mindset and technological skills, are increasingly attracted to offshore investments. This demographic tends to be more inclined to explore international markets and diversify their investment portfolios beyond the borders of their home country, driven by increased mobility and the search for superior opportunities.

Their familiarity with digital tools streamlines access to international markets through applications and online platforms, making investments in emerging sectors more manageable and attractive.

This global outlook, coupled with increased mobility and a deeper understanding of technology trends, contributes significantly to the growing demand for offshore investments among young investors.

Girlfriend: How are financial institutions adapting to the growing need for more personalized services in private banking and wealth management?

Oiticica: Private banking and wealth management are experiencing transformative change, with institutions at the forefront integrating emerging trends to better serve an increasingly sophisticated clientele. Significant investments in the development of digital platforms provide users with seamless, intuitive and personalized experiences, from advanced mobile applications to comprehensive online portals to manage investments efficiently and securely.

Strategic and flexible wealth planning is more crucial than ever in today’s complex geopolitical landscape. Institutions use advanced analysis and planning tools to help clients navigate uncertainties, ensuring robust and adaptable plans in the face of global changes. At the same time, enhanced cybersecurity measures, including cutting-edge encryption technologies, have become essential in the face of increasing cyber threats to protect sensitive customer information.

Additionally, artificial intelligence and data analytics are revolutionizing wealth management by providing deeper insights and improving operational efficiency. Financial institutions can provide more sophisticated, secure and responsive services by automating processes and analyzing data to identify trends and investment opportunities. Through these innovations, we adapt to current market realities and set the stage for future excellence in wealth management services.

Girlfriend: How do cross-border customers perceive and manage risk in different regions?

Oiticica: As global interest rates fall, investors generally take a more favorable view of the overall economic environment, thereby encouraging a greater appetite for risk. However, they must adapt this renewed perception to the unique conditions of each local market, as the effects of global monetary policies can vary significantly from region to region. In emerging markets, for example, lower interest rates in developed economies can lead to more stable and positive capital flows. This influx can significantly contribute to reducing market volatility and the overall perceived risk associated with these regions.

Girlfriend: How can financial institutions integrate the demand for alternative assets into intergenerational wealth planning?

Oiticica: This requires a comprehensive educational effort to inform clients about the long-term potential and inherent complexities. These investment vehicles can offer considerable returns when managed effectively, making them a desirable part of a diversified investment portfolio. But maintaining clear and ongoing communication about the performance metrics and expectations of these alternatives is crucial to maintaining customer trust over time.

Additionally, customizing investment strategies to meet the specific needs and preferences of each generation can promote the effective integration of alternative investments into comprehensive wealth management plans. This ensures that wealth is not only preserved, but expanded across generations, aligning with evolving family goals and market opportunities.

Girlfriend: What role do philanthropy and sustainable development play in wealth planning and intergenerational investment strategies?

Oiticica: Philanthropy and sustainability are becoming increasingly influential elements in wealth planning and intergenerational investment strategies. This commitment reinforces the commitment to the causes supported and ensures the continuity of the project, avoiding disruptive impacts on social or environmental initiatives. Additionally, maintaining a separate resource allocation for philanthropy – independent of family business interests – protects funds dedicated to charitable efforts from market fluctuations. This allows for consistent and sustainable support for chosen causes over time. By integrating philanthropy and sustainability into their investment strategies, families can achieve both financial and social returns, aligning their long-term goals with broader community and environmental goals.

Girlfriend: Why is financial education crucial for long-term wealth creation and protection in different economic segments?

Oiticica: Financial education is the cornerstone of creating and preserving long-term wealth, benefiting individuals from diverse economic segments, from affluent customers to the disadvantaged. It ensures effective management of resources, helping to maintain and increase wealth in accordance with planned timelines, whether for the current generation or for future generations. Additionally, comprehensive financial education supports investment strategies aligned with short, medium and long-term goals, including retirement planning, making it easier to build a solid financial plan.