Prominent wealth managers, particularly in Europe, face the need to accept fees for private banking services. Larger wealth management firms, with infrastructure similar to smaller private banks and comprehensive corporate governance, are expected to access institutional pricing directly. However, achieving this potential requires an industry-wide standardisation of consistent bidirectional data interfaces with all custodian banks. This significant shift is slowly gaining acceptance within the European Union. Nevertheless, Switzerland largely ignores this change.
Despite these challenges, we must recognize the exceptional service local private bank units in Switzerland provide. Moreover, no country understands the wealthy private client segment as comprehensively as Switzerland, with its traditional private banks. This expertise is a crucial asset. In the coming year, leveraging this asset should focus more on external collaborations than internal complexities. Foreign banks in Switzerland are ready and willing to engage proactively with local wealth managers and contribute to the future of private banking.
In conclusion, the future of private banking depends on embracing change, fostering collaboration, and leveraging expertise. By doing so, the industry can adapt and thrive amidst evolving challenges and opportunities.
Source: LinkedIn (SEO adjusted)
