The boss of one of the oldest banks in the world has outlined its modern outlook as it rolls out across Scotland.
London-based private bank and wealth manager Coutts – founded by a Scot in 1692 – has a long history of doing business north of the border.
But it now also has a physical presence, with offices in Aberdeen, Edinburgh and Glasgow.
Picking up where Adam & Co left off
The new Scottish footprint comes in the wake of the bank’s owner, NatWest Group, disposing of part of its Adam & Co business earlier this year.
NatWest, whose operations also include Royal Bank of Scotland (RBS), sold the investment management division of Adam & Co to Cannacord Genuity Wealth Management for £54 million.
Adam & Co’s wealth business, banking and lending teams are now part of Coutts, giving the ancient financial institution a presence in Scotland it has not had since goldsmith John Campbell, of Lundie, Angus, launched the business more than three centuries ago.
Peter Flavel is the man at the helm these days, steering the bank – as chief executive – into a new era of workplace diversity, environmental and social governance (ESG), and energy transition, as well as the new offices in Scotland.
While proud of its history, Mr Flavel is keen to portray Coutts as a modern, progressive and forward-looking business that is fit for the 21st Century and not stuck in the past.
He said: “When I joined a little over five years ago it was apparent to me that we needed to nurture our heritage but not live in it.
Fast-changing market
“We needed to become more modern, relevant and contemporary.
“The economy is changing, the cloud is changing very quickly.
“My job in running the business is to make sure we are addressing the needs of all our clients and not just those we have met the needs of in the past.”
Future generations will have ESG “much more firmly in their minds” so Coutts needs to adapt, he said.
We have YouTubers and influencers – we’re bringing in many new types of client.”
Peter Flavel, chief executive, Coutts.
The bank’s customers are changing in other ways too.
Mr Flavel said: “When people think of Coutts, they tend to think of hereditary and landed wealth, yet we have 20,0000 successful entrepreneurs banking with us.
“We look forward to encouraging many more to join us.”
It’s not just your traditional entrepreneurs who are banking with Coutts nowadays.
“We have YouTubers and influencers, Mr Flavel said, adding: “We’re bringing in many new types of client.”
Coutts’ commitment to ethical banking is reflected in its decision to apply an ESG “filter” to all its investment funds, the bank’s CEO said.
The bank’s environmental credentials include a rooftop garden, complete with beehives, at its London city centre headquarters on the Strand.
Asked whether the bank had any plans to review its investments in oil and gas amid growing pressure on corporates from lobby groups, Mr Flavel said: “We need to continue to fund those companies in order to give them a reasonable amount of time to get to net-zero.”
Big hopes for Scotland
Coutts’ bosses are anticipating a healthy payoff from the Scottish roll-out.
Mr Flavel said: “We are looking for Scotland in due course to contribute about 10-15% of what we do as a company overall.
“We think there is a good opportunity for us to grow.”
Coutts’ Aberdeen team shares space with colleagues from RBS.
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