What is the state of Switzerland private banking?

Switzerland has a unique position in the world of private banking. Its legacy of secrecy and tradition is useful when it comes to the wealthy. However, this can lead to a less than exemplary reputation. Patrick Brusnahan speaks to Mirabaud on the nation

Patrick Brusnahan

What is the state of private banking in Switzerland at the moment?

Etienne d’Arenberg

Private banking in Switzerland has never been more promising, with all the qualities of a well organised and well-staffed sector coming to the fore: banks are well capitalised, custody is the best in the world In terms of user-friendliness by far, statements are getting clearer by the day, fees are transparent and access to all investment strategies is not swiss but global. That being said, there is pressure on fees, but top service levels and security are difficult to emulate in other countries. The good management of the country itself is of great help too.

What is the state of private banking in Switzerland at the moment?

Private banking in Switzerland has never been more promising, with all the qualities of a well organised and well-staffed sector coming to the fore: banks are well capitalised, custody is the best in the world In terms of user-friendliness by far, statements are getting clearer by the day, fees are transparent and access to all investment strategies is not swiss but global. That being said, there is pressure on fees, but top service levels and security are difficult to emulate in other countries. The good management of the country itself is of great help too.

Has it changed in the last five years, and if so – how and are there any themes?

Changes abound: anything sustainable investment is gaining traction with Switzerland a major hub for that, fee pressure is clearly there to stay but at the same time other industries have seen this and differentiated their offering: take the hotel industry for example that offers 5 or even 6* hotels and 1* hotels for the same basic functions. Similarly, so for the fashion industry, you have fast fashion and high fashion and everything in between.

We should remain optimistic that customers will have a similarly diversified approach and be ready to pay for value, a very Swiss characteristic. But one thing remains, clients seek and not often find family-owned, international, independent, and client-focused banks: Mirabaud is one of not many.

What are the trends or questions you are witnessing from Swiss clients?

These customers are, as everywhere, demanding. They expect very high-quality services from us, and have a choice of more than 200 banks! The trend is towards a broadening of the services offered, including Wealth Planning, Private Equity, M&A, etc. Switzerland has a unique position in the field of sustainable finance, also due to the large number of international organisations and NGOs on its soil.

Switzerland has a unique position in the market, how does Mirabaud take advantage of this?

Mirabaud is not only a swiss recognised brand but also an international operator via 16 offices. The ‘swissness’ Mirabaud offers since 1819 in the precision of its execution, the bespokeness of its services, the breath of services it provides from asset management and portfolio management to brokerage to private banking and custody is not often found under one roof (and a boutique at that, not a less-personal giant): clients benefit from end-to-end knowledge and can rely on the same individuals over decades.

Mirabaud often acts as a personal, portable Family Office to its clients, one’s very own Finance Director but without the HR and other organisational issues associated with it.