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Clay Deutsch
Title: President and CEO, Boston Private (retired)
Age: 63
Experience: 40-plus years
During Clay Deutsch’s eight years at the helm of Boston Private, the former McKinsey & Co. executive saw his fair share of challenges, including issues with the bank’s up-and-coming wealth management division and a series of layoffs. However, when he retired earlier this year, Deutsch left Boston Private in much better shape than when he joined it. He not only helped transition the bank to one focused on premier banking services, but also helped grow the company’s stock price – from about $6 when he came aboard in 2010 in the midst of the financial crisis to a little below $13 when he retired at the end of November. During his tenure, Deutsch also helped grow Boston Private from $3 billion in assets to close to $8.3 billion at the end of the third quarter of this year, making Boston Private the fifth largest state-chartered bank in Massachusetts. Deutsch will be succeeded by Anthony DeChellis, former CEO of Credit Suisse’s Private Bank Americas and former head of private banking at UBS.
Deutsch leaves the industry with more than four decades of experience. He began his career in the 1970s at Society Corp., the predecessor to KeyCorp. He then joined McKinsey & Co. in 1980, where he stayed for 30 years and helped establish and build the financial services practice globally. In doing so, Deutsch developed deep experience working with many leading financial institutions, with a focus in the private banking, wealth advisory and wealth management sectors. Banker & Tradesman caught up with Deutsch to discuss his time in the industry and at Boston Private.
Q: You came into Boston Private during a tumultuous time. How has the bank grown since 2010?
A: I was brought on board in 2010, in the depths of the financial crisis, to restructure Boston Private for success and in the last nine years, I believe that we have strengthened our company along every dimension. Today, Boston Private is a financially strong, independent financial institution with great clients and extremely talented employees. I’m proud of the way the company is run and the business model we’ve created. My successor, Anthony DeChellis, will now have an opportunity to build the company for greater success long term.
Q: What are you most proud of during your time with the bank? What was the biggest challenge?
A: We dealt with many challenges on many fronts. But throughout, I feel we took care of our commitments to clients, to employees, to regulators, to communities in which we operate and to shareholders, especially those who came in to support us during the toughest times. Our people continue to be our greatest asset, as they’re the ones that deliver the best-in-class client service for which we’ve come to be known.
Q: What is advantageous about Boston Private’s model?
A: Boston Private’s model is unique in that we bring private banking, wealth management and trust services all under one roof. Our value proposition is to bring together the full spectrum of these services to provide clients a single, trusted resource to manage their full financial picture. In many cases, that picture includes both personal and business concerns – so our company is structured in a way that enables teams of personal wealth and business finance experts to create a custom plan for clients’ specific needs.
Bram Berkowitz
Q: As you just mentioned, a big part of Boston Private is wealth management and private banking. What advice do you have for other banks looking to get into these sectors?
A: Be careful – it’s harder than it looks. These markets and these clients are appealing, but the requirements to perform are substantial. You have to bring great solutions and great execution. Anything short of “outstanding” will not work.
Deutsch’s Five Tips for Wealth Management
- Client selection matters. It’s virtually impossible to turn a less-than-great client base into a good wealth management practice and business model.
- Focus on listening skills, not sales skills.
- Create a culture that celebrates ethical behavior, serving clients exceptionally well and developing superb professionals.
- Put client interests ahead of near-term firm interests.
- Remember that wealth management is a profession, not a job.
