Itaú Private Bank has changed its fee structure and expanded its product offering as it aims to increase its presence in Latin America's offshore market over the next five years, according to its international private banking chief Carlos Constantini.

In an interview with Citywire Americas, Constantini, who is also the CEO of all of Itaú's operations in the US, said they are also 'enhancing our platform by investing in technology and product development'.

'I’m convinced that in the next five years we will be able to grow from a top three to number one in offshore for Brazilian clients and also grow in other Latin American markets,' said Miami-based Constantini.

The Brazilian company currently runs over $20 billion in private banking assets, with $12 billion in Miami and $8 billion in Zurich.

The firm recently consolidated its private banking business under one roof, with Constantini being named its head of international private banking shortly after he joined earlier this year.

The fee changes have seen Itaú introduce a one-off annual client fee which covers all of their advisory services and any trades that are carried out on their account.

'With this [new fee] there is no doubt that the brokers advising on a product will not be charging you commission for any change. I’m convinced this is the way the industry is going.'

Alternative push

The other area Constanstini said they have been working on is building new partnerships to expand their product offering, especially in alternatives.

This has led to the creation of a new selection list, he said, the Focus List Plus, which covers alternative investments ranging from real estate to private credit opportunities.

'We really see clients noticing the difference, we want to innovate and offer these kind of products to clients so that they feel that although they are part of a Brazilian private bank they are not missing out on anything.

'Part of this strategy is to establish partnerships with American family offices and offer our clients opportunities in private equity and real estate.'

While these changes to its private banking operations have been carried out since he joined, Constantini stressed that the decision to refocus their business started before he arrived.

'At the end of last year Itaú Private Bank in Miami sold their portfolio of clients off non-core markets where they had no presence in and no local bankers. We then focused on the Latin markets where we have presence.'