In recent years, the Association of Swiss Private Banks has been faced with declining membership numbers. Now that it has gained a new member institution, the lobby organization is hopeful that the tide is turning.

The new year certainly started out well for the Association of Swiss Private Banks (ASPB). As of January 1, Cité Gestion, a financial institution headquartered in Geneva, became the newest member of ASPB, as announced on Monday by the lobby organization of the private banker.

Joining Forces With Asset Managers

A former subsidiary of Lombard Odier, the long-established Geneva private bank, Cité Gestion did not obtain a banking license until 2022. Since that time, it has reportedly been holding talks with ASPB on joining the association. Cité Gestion was established in 2009 as a securities dealer and underwent a management takeover in 2017. Since then, the financial institution has joined forces with various asset managers, including Ultra Finanz, Sartus Capital, and Green Blue Invest.

The private bank, which also maintains branches in Lausanne, Lugano, and Zurich, says that it presently has a total of 7.7 million Swiss francs under management from private clients in Switzerland and abroad. The bank employs 125 people, including 80 consultants.

FINMA License as the Driving Force

The industry association is hoping that the addition of the new member means that the tide is turning. When asked, ASPB Director Jan Langlo explained that business is stable for all members.

«We therefore hope to continue increasing the number of affiliated private banks.»

In his view, a trend reversal is also indicated by the fact that since 2023, asset managers have been required to report to the Swiss Financial Market Supervisory Authority (FINMA). «We anticipate that this imposition could lead to additional establishments of new private banks. Now that assets managers are subject to regulation and monitoring anyway, it will become more attractive for them to obtain a banking license as the highest regulatory level,» says Langlo.

Consolidation Takes a Toll

With the new addition, the ASPB is now back to eight members. According to a Monday announcement, those institutions manage a total of 1,000 billion Swiss francs and employ more than 9,600 members worldwide, nearly two-thirds of them in Switzerland.

This came after having lost members over the years. In 2015 for instance, the association still included ten banks. However, consolidation in the industry has taken a toll in the years since, particularly among the small private banks in western Switzerland.

Four True Private Banks Left

ASPB maintains an office in Geneva and is committed to defending and representing the business interests of Swiss private banks. Of the eight ASPB members, four meet the definition of a «true» Swiss private bank, with full liability for the bank’s partners. Those banks are Bordier & Cie, E. Gutzwiller & Cie Banquiers, Rahn+Bodmer Co., and Rahn+Bodmer Co.

Although the other four member banks – Lombard Odier, Mirabaud, Cité Gestion, and Banque Pictet – are partner-managed, they are organized as joint stock companies.