As a wealthy individual, have you ever wondered about the differences between an independent wealth manager and a private bank? While both offer financial services in portfolio management, there are significant differences that investors should be aware of.
Unlike private banks, independent wealth managers focus solely on wealth management services and operate independently of a bank. This independence gives Swiss independent wealth managers more flexibility in designing investment strategies, as they are not tied to specific internal products. Swiss independent wealth managers are also more cost-efficient than private banks, as they do not have additional banking services and substantial infrastructure costs. Furthermore, independent wealth managers often have a more personal and holistic relationship with their clients, leading to better client service and advice.
On the other hand, private banks offer their clients a more comprehensive range of financial services, such as mortgages. These additional services can be advantageous for clients who need a broader range of services, but they can also come with higher costs and potentially less personalised service and advice. After all, an independent wealth manager can organise these services for their clients through the chosen custodian bank but usually won’t impact their revenue stream.
Choosing between an independent wealth manager and a private bank depends on your needs and preferences. If you prefer personalized service and access to a wide range of products or want consolidated portfolio reporting, an independent wealth manager may be the better option.
Source: LinkedIn
