Switzerland and Liechtenstein, houses hitherto seen as marginalised
minnows by the big global wealth management powerhouses, claim they
are gaining a significant competitive edge as a result of the US
subprime crisis.
This marks a potential resurgence of the boutique firm – a model
frequently depicted as being in a strategic cul-de-sac compared
with the international full-service private banks such as UBS and
Citigroup.
Go deeper with GlobalData
Banque Piguet, Pictet, Mirabaud and Union Bancaire Privée and
others indicate that, with minimal exposure to US collateralised
debt obligations, they’re now winning the confidence of nervous
clients.
Looking to smaller players
In contrast, the huge write-downs on subprime exposures at large
rivals are prompting clients to question whether it is wise to hold
money in such brand-name players. Growing numbers of clients are
now looking at the smaller players as they review their investments
– and the safety of the managing bank, Swiss bankers say.
Amid the nervousness, “our model is reassuring for clients,” Pictet
partner Jacques de Saussure says. Piguet chief executive Charles de
Boissezon says nowadays “we Geneva houses are being seen in a very
good light”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAlex Widmer, Julius Baer head of private banking, declares “an
incredible flight to quality” is under way, generating new clients
and assets reflecting the subprime turmoil.
Prince Maximilian, group CEO of LGT Bank in Liechtenstein, says
questions are being asked over how several large banks could have
incurred such huge losses, saying: “If they could not manage their
own profitability in a sensible way, what does that mean for the
client?” The banker charges that the big players have developed too
much complexity. They are in many businesses – private banking,
retail banking, investment banking, private equity, and other
financial sectors, he said, adding: “This very diversified business
model helps to put their name everywhere to build a presence, a
brand. On the flipside, it creates a lot of complexity.”
