Coutts, the prestigious 333-year-old banking institution famously used by the King, has dramatically raised its entry bar from £1 million to £3 million, effectively shutting out 'lower-level' millionaires in favour of the ultra-wealthy. This unprecedented hike marks the largest wealth-test increase in the bank's history, signalling a strategic pivot toward exclusively serving ultra-high-net-worth clientele.
New Entry Requirements and Client Impact
While the new requirement reportedly came into effect in November, the change applies strictly to new applicants. Loyal customers who currently fall below the threshold will not be affected, maintaining their accounts without disruption. Visitors to the Coutts website who fall short of the new requirements are now automatically directed toward NatWest, its high-street banking partner.
Under the updated criteria, clients must maintain a total of £3 million across their combined savings, investments, and borrowings. However, the bank maintains some level of discretion for applicants who don't strictly meet these financial thresholds, allowing for exceptional cases.
Historical Context and Recent Changes
The barrier to entry has climbed significantly over the years. The requirement sat at £500,000 until 2011, when it rose to £1 million in investments. This latest tightening of standards follows a fee hike last year targeting less affluent members. Clients with assets under £500,000 now face a £100 monthly charge, a notable increase from the previous tiered system where fees ranged from £25 to £75 depending on account balance.
Controversial Background and Strategic Direction
Coutts faced a firestorm in 2023 for shuttering Nigel Farage's account, initially claiming 'his views did not align with the bank's values.' However, a BBC report later indicated the decision was strictly financial, citing Farage's failure to 'meet its wealth threshold.' The fallout led to the resignation of NatWest CEO Dame Alison Rose, who confessed to being the source of the 'inaccurate leak.'
Addressing its future direction, Coutts stated: 'Our ambition is to be the UK's number-one chosen partner for private banking and wealth management. Last year, we set out a strategy that is focused on supporting clients through the right service model for their needs. We are also working towards completing the acquisition of Evelyn Partners, announced in February, with regulatory approvals expected over the summer.'
Growth Strategy and Market Positioning
Despite the controversy, Coutts is doubling down on its growth strategy. The bank is currently finalising the acquisition of Evelyn Partners, a move expected to be cleared by regulators this summer. This shift reinforces the bank's legendary 'wealth test,' a gatekeeping measure designed to preserve its status as a premier, exclusive institution catering only to the wealthiest individuals.
Coutts has been contacted for further comment regarding these significant changes to its client eligibility requirements and strategic focus.
