The American bank's wealth management arm is quietly advancing to compete with Swiss giants. Other U.S. private banks are not far behind.

At last $25 million: that's what it takes to become a client of J.P. Morgan's wealth arm in Switzerland. The American bank's extremely high barrier to entry is meant to underscore its focus on the super-rich – or those with more than $50 million. The push is bearing fruit, Swiss boss Nick Bossart told media representatives on Monday.

Roughly half of the $80 billion managed by the New York-based giant are ultra-rich assets, many of which are funds from the Middle East and Latin America, as finews.com reported. This vaults J.P. Morgan past several Swiss banks: by contrast, Vontobel manages $66 billion at its wealth arm, Geneva's Mirabaud roughly $25 billion.

UBS Veteran Poached

J.P. Morgan's advances follow a concerted push in German-speaking Switzerland in particular. The bank recently bolstered its Zurich office, where 20 private bankers are devoted to ultra-high net worth clientele. Two months ago, the bank poached UBS veteran Reto Demostene from UBS. The majority of J.P. Morgan's Swiss wealth employees are based in Geneva. 

The wealth manager's approach is being imitated by its American peers: Goldman Sachs recently strengthened its Swiss private banking arm. Better known in the alpine nation as an investment banking powerhouse, Goldman bolstered its regulatory standing, reinforced its ranks in Geneva, and poached Lombard Odier wealth veteran Dominique Wohnlich.

Post-Crisis Retreat

Citigroup is also hunting Swiss wealth: the New York-based bank has tasked Laurence Mandrile-Aguirre with the push. The broader push by American banks represents a forceful expression of growth ambitions, after several foreign banks pulled out following the financial crisis.

In 2012, Bank of America sold Merrill Lynch's wealth activities outside the U.S. to Julius Baer, which vaulted the Swiss wealth manager up the asset league table. Two years later, J. Safra Sarasin took over Morgan Stanley's Swiss private bank. 

U.S. Hunts Wealth Crown

J.P. Morgan's interest in the ultra-rich come as both UBS and Credit Suisse put renewed emphasis – and resources – towards the potentially lucrative segment. For the American banks, in-built investment banks present a potent argument for banking the super-rich – and their business interests.

If the U.S. banks have a lead in investment banking, UBS is still the largest wealth manager in the world. UBS claims to bank at least some of the wealth of 80 percent of Asian billionaires, while in Europe roughly half, and in the U.S. one-quarter of the segment. Who is right behind the Swiss powerhouse, in terms of assets? American giants Morgan Stanley and Wells Fargo.