The big private banks in Geneva are keen to stress that they’ve been family-owned for hundreds of years. UBP is also family-owned, but it doesn’t put this fact center stage. Why not?
The vast majority of wealthy clients in Asia aren’t at all familiar with Swiss private bank brands and history. Besides, hardly anybody knows how to pronounce my surname! (laughs)
Being family-owned is an advantage, but what really matters is having relationship managers who know their clients, understand their needs, and deliver.
You mentioned that you hunt whole teams from your competition. Do these private bankers also manage to convince their clients to change banks?
Blake: That really depends on the particular client relationship – how long it’s existed and how close it is.
«It sounds cynical, but I often say that in banking, you often grow because of others’ mistakes»
De Picciotto: Some teams that we’ve hired come over because they no longer feel comfortable elsewhere due to internal restructuring. Generally, their clients then come with them.
It sounds cynical, but I often say that in banking, you often grow because of others’ mistakes. That’s why we have to make fewer mistakes than others. It sounds worrying, but it’s true.
In Asia, the signals are pointing to growth. How are things looking in Switzerland?
Different. Swiss banking is still fighting old battles. Laws and regulations are constantly changing and getting stricter, and access to the European market will probably never happen. Whereas we had to get out, local European banks are becoming ever more competitive and there’s a bitter pricing war raging. I have no idea where it will all end up.
In other words, you can’t really grow in Europe.
It takes a lot of effort. Without a doubt, Germany is attractive and we work on this market out of Zurich.
«Brexit won’t have any effect on the wealth management industry in London»
In contrast, France – which was formerly very important – is no longer a priority market for us, as a lot of wealthy French clients have decided to relocate outside of France Italy, is attractive and we have growth plans in the near future.
What about Brexit?
What Brexit? (laughs) In my view, Brexit won’t have any effect on wealth management in London. That’s why we’re expanding our presence on the Thames further and these plans can’t wait for the outcome of the Brexit negotiations.
How are things going in Zurich, where former Notenstein CEO, Adrian Kuenzi, has taken the helm?
Really well. We’ve got 25 billion francs in assets under management in Zurich, making us the biggest Geneva-based private bank in the city. We’re growing and we’re looking to hire more talented relationship managers.
A spying scandal involving a top manager at Credit Suisse has caused quite a stir in Zurich. Do you think that this sort of thing harms banking?
At best, that is just a footnote, a side effect. I don’t understand the problem. It’s simply a matter of a few egos clashing. Spying on a manager who has gone over to the competition to make sure he’s not poaching anyone? Honestly! Is it effective? Not at all.
Even the prestigious «Financial Times» picked up on spygate.
The international press uses any opportunity to criticize the Swiss finance, whereas they should be looking closer to their home financial sector.
Foreign countries are regularly talking up the demise of Swiss banking. Is this justified?
The market is far too sluggish. Today, on the one hand, there are the private banks with more than 100 billion francs in assets under management, whereas on the other hand there are the banking boutiques with 30 billion francs and less. Almost everything that fell in between has been consolidated.
«Of course, negative interest rates are having an effect»
Will there be other mergers? Not in the short term. The margins are still OK, and there needs to be a general worsening of the market as a whole before smaller institutions will be forced to merge or shut up shop.
