Prominent wealth managers, particularly in Europe, are currently grappling with the necessity of accepting fees on private banking services. Larger wealth management firms, which traditionally boast infrastructure comparable to smaller private banks and have comprehensive corporate governance, are generally expected to have direct access to the institutional pricing world. Yet, realizing this potential requires an industry-wide standardization of consistent bidirectional data interfaces with all custodian banks. This significant shift is slowly gaining acceptance within the European Union but is still largely ignored in Switzerland.
Despite these challenges, itโs crucial to recognise the exceptional service provided by local private bank units in Switzerland. Additionally, no country understands the wealthy private client segment as comprehensively as Switzerland, with its traditional private banks. This expertise is a key asset that should be leveraged more in the coming year, focusing on external collaborations rather than internal complexities. Foreign banks in Switzerland are indeed ready and willing to engage proactively with local wealth managers.
Source: LinkedIn
