Private Banking vs Wealth Management in Switzerland is one of the most critical choices for wealthy individuals today. This article from our Swiss wealth management blog explains the differences in fees, service, product access and safety, helping you decide which model fits your needs best.
A clear, practical comparison for HNW and UHNW clients deciding between a private bank and an independent wealth manager in Switzerland. Written by a Swiss wealth management blog with a focus on transparency, safety and results.
Contents: Executive summary | The Swiss context | Fees & total cost | Product access & conflicts | Service, continuity & governance | Safety: custody & separation of duties | Performance & reporting | 7-question checklist | Mini case studies | FAQ | Next step
Executive summary
- Private Banking = one-stop shop with lending and extras, but often more standardised and with product biases.
- Independent Wealth Managers (EAMs) = modular fees, open-architecture product access, and typically stronger relationship continuity.
- Safety: In both models, assets remain at a custodian bank; with EAMs, the separation between advice and custody is explicit.
- Bottom line: choose Private Banking for integrated services and lending; choose an EAM for transparency, flexibility and multi-bank optionality.
As a Swiss wealth management blog, our aim is a balanced, client-first comparison you can act on.
The Swiss context
Switzerland is the global benchmark for Private Banking and home to a large, regulated ecosystem of External Asset Managers (EAMs). EAMs advise clients while custody remains with a chosen bank. This model combines independence in advice with the safety and infrastructure of established custodians.
Explore our custodian insights and industry primers:
- Custodian banks: a closer look
- The role of custodian banks in Swiss wealth management
- Swiss wealth managers: overview
- Balance sheets in wealth management and banking
Fees & total cost
Private Banking often quotes an “all-in” fee, then adds product margins (e.g., structured products, funds) and trading/FX costs. EAMs typically employ a transparent, modular structure, comprising management fees, custody fees at the bank, and explicit transaction costs.
| Criterion | Private Banking | Independent Wealth Manager (EAM) |
|---|---|---|
| Management fee | Often 1.0–1.5% p.a. (tiered) | Often 0.75–1.0% p.a. (modular) |
| Product costs | House & third-party products; potential in-house bias | Open architecture; typically broader third-party access |
| Transactions & FX | Bank-defined; may be bundled or per ticket | Explicit; negotiated via custodian |
| Total cost clarity | Good headline clarity; full picture can be complex | High transparency by component |
Deep dive on costs and revenue mechanics: Revenue payout ratio in wealth management.
Product access & conflicts
Private banks can blend house and third-party products, which may create conflicts of interest if in-house products are prioritised. EAMs are structurally set up for open architecture, selecting best-in-class instruments across providers and custodians.
Further reading from our Swiss wealth management blog on open architecture:
Service, relationship continuity & governance
Private Banking shines when you require integrated services (e.g., credit, mortgages, complex lending, concierge). However, relationship-manager turnover can be higher in large institutions. EAMs often provide strong continuity with a senior adviser who knows your family, mandate and constraints over time, plus faster decision-making.
- Governance matters: investment committee, mandate limits, rebalancing discipline.
- For career and team dynamics in banking, see Are the private banker dinosaurs dying out?
Private Banking vs Wealth Management in Switzerland: Safety and Custody
With an EAM model, your assets remain at the custodian bank. The EAM holds a limited power of attorney to manage the portfolio but cannot withdraw cash. If you part ways with the EAM, the custody relationship with the bank remains intact.
Learn more about custodians and risk safeguards:
Regulation of both private banks and independent wealth managers in Switzerland is overseen by the Swiss Financial Market Supervisory Authority (FINMA). For industry standards, see also the Swiss Bankers Association.
Performance & reporting
Judge outcomes on net performance after all fees, not headline returns. Private banks typically report on a per-bank basis; EAMs often provide consolidated reporting across multiple banks, which helps families track risk, drawdowns, and liquidity holistically.
Related reads:
7-question checklist (decide in minutes)
- Do I value cost control or integrated services more?
- Is product neutrality vital to me?
- Do I want the option to use multiple custodian banks?
- Do I need significant lending or bespoke banking extras?
- How meaningful is the relationship continuity with my adviser?
- Do I require consolidated reporting across banks and entities?
- What’s my exit plan if I wish to switch in future?
Mini case studies
Entrepreneur (illiquid assets)
Requires financing and corporate banking extras → Private Banking is often suitable, potentially complemented by an EAM for liquid assets.
Expat with cross-border needs
Prefers flexible custody and reporting → EAM with multi-bank set-up and tax-aware portfolio construction.
Family Office light
Multiple banks, entities and currencies → EAM with consolidated reporting and mandate governance.
FAQ
What is the main difference between Private Banking and an EAM? Private Banking combines advice and custody under one roof. With an EAM, advice is independent, and custody stays with your chosen bank. Are EAMs cheaper? Often, yes. The modular structure clearly exposes each cost component, enabling you to compare the true total cost. Are my assets safe with an EAM? Yes. Assets remain at the custodian bank; the EAM cannot withdraw cash. You can keep custody if you change advisers. Who should choose Private Banking? Clients who need integrated services and lending from a single institution. Who benefits most from an EAM? Clients who prioritise transparency, independence, open-architecture access and multi-bank optionality.
Next step
Still unsure which route fits you best? Book a 15-minute initial review of your current set-up – objective and confidential.
For more context from our Swiss wealth management blog, explore: Independent wealth manager in Switzerland: your guide to financial freedom and Why independent wealth management?
This article is reviewed regularly to keep it current. It is part of our Swiss wealth management blog resources.
Choosing between Private Banking vs Wealth Management in Switzerland ultimately depends on your goals, cost expectations and service preferences. Private Banking can be attractive for clients who want everything from one institution, while independent wealth managers often deliver more transparency and flexibility. If you would like to explore your options, our Swiss wealth management blog offers further insights and practical comparisons.
