Times have been bleak for high net worth individuals, but they are set to recover. The Economist Intelligence Unit estimates that through 2012, the number of HNWIs will grow by 8% per annum while the number of ultra-HNWIs will grow even faster at 13%.

To compete for this growing number of investors and their assets, financial institutions must ensure they are providing an ever-improving level of service. The financial crisis has accelerated a long term trend towards greater transparency and control by the customer that marked the move from generations who inherited their wealth to those that made it themselves. The confidence of HNWIs has been severely shaken, so now they're getting more involved in their investment decisions.

As well as demanding more access to information, clients also want to spread their assets across an increasingly diverse and complex set of financial products, which means that private bankers must eventually adapt their role from investment selector to strategic advisor, tapping into a pool of experts for guidance on specific investment vehicles and other issues.

Customers used to be loyal to one bank, but now they hold assets in many different places and across many institutions. Advisors must understand the customer's entire portfolio as customers want to be able to understand the implications of their investments as a whole, rather than being given disparate pockets of information that don't really add up to anything. Creating this 360 degree view of a customer's portfolio isn't a straightforward process for many businesses involved in private banking. Gathering and entering client data is often prone to errors and inconsistencies. Disparate technologies and data stores make it difficult to compile effective analysis. Additionally, cumbersome workflow means that advisors are often unable to deliver timely advice as quickly or as frequently as clients expect.  If one manager isn't looking after all of the assets then it can be very difficult to collate the total portfolio view. The client may have investments spanning many different instruments, banks and countries, as well as unusual bonds, artwork and other valuables that they may consider part of their portfolio. For the private banker, trying to work out how particular elements contribute to the portfolio as a whole can be very difficult.

Failure to fulfil client expectations can be catastrophic for financial institutions and can cause a breakdown in relationship with the customer. As opposed to other financial services, private banking is not a commodity, it is very much connected to the relationship with the customer - and therefore the provision of accurate information for the customer is vital.

What is often missed in private banking is that it is not just the people in the front office who are responsible for the relationship. There are actually many touch points with the client in the servicing of their accounts and portfolios. Things like contract notes, corporate action information, statements and order processing are a key part of maintaining a relationship. Having a single system which integrates the front to back office allows the bank to provide these servicing elements seamlessly. As one of our clients said to us, "everyone in a bank is in customer service."

Ultimately, it is technology that provides financial institutions with a complete view of their customers, and that is the real enabler of success. There's a clear difference in the levels of achievement between those firms that reach out to clients and communicate with them regularly and those that don't. As the economy recovers, those private banking firms that do reach out to customers will maintain competitive edge and enhance their positions in the market. Those that don't will lose customers, lose profits, and struggle to stay afloat.

Lynne Landau is product manager for Private Wealth Management, Temenos