A little over ten years ago, two aspiring independent wealth managers from Hong Kong visited us in Switzerland to learn how Swiss wealth management really worked.
They wanted what they called a “dog and pony show.” Anyone who knows me knows that I am always happy to share experience, ideas and a few honest opinions.
What surprises me today is that both of those wealth managers have grown larger than the biggest independent wealth management firms in Switzerland.
That should make us uncomfortable.
Where Swiss Wealth Management’s Legacy Gets in the Way
Swiss wealth management has the history, the reputation, the expertise and the client trust. Yet others have built larger independent platforms in less time. So what went wrong?
In my view, our legacy is getting in the way.
And by legacy, I do not only mean old technology. I mean old assumptions, old structures and old definitions of what an independent wealth manager should look like.
Many Swiss firms left the banks but continued to think like banks. They copied the same processes, the same product logic and often the same fragmented technology landscape. However, they became independent in ownership, but not always in thinking.
Our ecosystem does not make it easier either. Custodian banks, compliance providers, portfolio management systems, CRM platforms and regulatory requirements all play their part, but the result is often a collection of strong individual components that do not scale well together.
Building Platforms, Not Personal Franchises
Many firms are also built as excellent personal boutiques rather than scalable institutions. That model can be profitable and highly respected, but it rarely grows into the size of a smaller private bank.
To reach that level, we need to think differently from the beginning. Specifically, we need stronger data foundations, more standardised processes, better technology integration, professional governance and a clearer willingness to build platforms rather than personal franchises.
Most importantly, we need to stop protecting yesterday’s model. The real question is not how Swiss wealth managers can become slightly bigger.
Instead, it is what we would build today if we were starting again with no legacy at all.
