Vegas executives setting up private bank for the wealthy

Phil Levine

Friday, Nov. 12, 1999 | 11:01 a.m.

Peter Kingman believes affluent Las Vegans will welcome a private bank committed to the principal that less is more.

Kingman, chief executive officer of the proposed new SouthwestUSABank, said wealthy customers expect personalized service and will patronize a bank with a narrow focus on high net worth customers.

"I have no doubt there's a demand in this market for quality, personalized private banking services," said Kingman. Slated to open in March 2000, the bank will offer a range of personal, corporate and investment oriented services including cash management, loans, deposits and withdrawals.

Kingman said SouthwestUSA Bank will have an initial capitalization of $10 million.

Kingman's conviction about the demand for a private client bank is fueled by his experiences over the last five years as president of Henderson-based Nevada Trust; the company has about $150 million in managed assets and specializes in retirement planning and "family wealth management." The new bank's location is as yet undetermined, but will likely be in close proximity to Nevada Trust's office at 4000 S. Eastern Ave.

"Since we established Nevada Trust in 1995, we've referred several clients over to various banks," he said. "I'm not going to disparage the larger banks, but the fact is they are geared to serving a mass audience.

"However, our new private bank will look to build long-term relationships with high net worth clients. That will enable us to be highly responsive to the individual situation and circumstance of each client."

That individuality will also be reflected in the bank's design. Kingman said the new bank will have no teller windows and will proffer one-on-one client conference rooms; unlike most other banks, SouthwestUSA won't have voice mail.

Those seeking even more individual financial attention will be able to do so from the comfort of their own home, Kingman said.

"If clients prefer, our managing directors will meet with them at their homes to discuss their financial needs," he said.

In addition to Kingman, several of the bank's senior executives possess extensive experience in the financial sector. Chief operating officer Rob Robinson spent six years as COO for Texas-based Midland American Bank; board director Charles Tierce was Midland American Bank's founder and director.

SouthwestUSA CFO Jack Harvey previously held the same position at Howard Hughes Corp. Harvey is currently president and director of four Nevada investment companies affiliated with Milwaukee, Wis.-based Marshall & Ilsley Bank.

SouthwestUSA's Texas connection is also reflected in the bank's growth plans. Kingman said no future branches are planned for Nevada, however the bank's executives hope to open an office in Austin, Texas.

"We were looking for markets with demographics similar to Las Vegas', and identified Austin as such a market," he said. "Also, several of our executives are very well-versed in Texas banking."

In Las Vegas, SouthwestUSA will find itself competing with the private banking arms of some of the nation's most powerful financial companies.

San Francisco-based Wells Fargo is an active player in the private banking sector. Randy Campanale, senior vice-president and regional manager of Wells' Private Client Services, agreed that Las Vegas is an attractive market for private banking.

"With a booming economy, a lot of wealth is being created here," he said. "In addition, there's a sizeable retirement community here. Metropolitan Las Vegas now has about 1.3 million people, and this town receives a lot of attention. It's not surprising that new players would enter the private bank market here."

Wells' private bank headquarters is in the Wells Fargo tower at 3800 Howard Hughes Parkway, although clients can access services from any branch.

Not surprisingly, Campanale maintains his private bank clients receive the best of both worlds: individualized attention combined with the resources of a national bank.

"For example, our private client services work directly with our private banking loan group," he said. "Also, our executive services group works with individuals with restrictive stock -- such as executives who are restricted by law from selling company stock -- to help ensure their liquidity."

Well's private bank is even competitive on the voice mail front, he said.

"We don't have voice mail for private bank clients," said Campanale. "We believe voice mail and private banking is a contradiction."