Review on the Swiss Private Banks & Wealth Management Program II
According to statistics of Deloitte International Wealth Management Centre in 2018, among the nine countries and regions including Switzerland, Singapore, the U.S., UK, United Arab Emirates, Luxembourg, Bahrain and Panama, the Caribbean, and the Hong Kong Special Administrative Region, Switzerland ranks No.1 in terms of competitiveness, scale and performance.
As the world's leading financial centre, Switzerland manages one third of the world's offshore assets. It is the world's largest offshore financial centre and leads the world in the field of private wealth management.
On January 4 and 5, the first lesson of the flagship program was given on the Swiss private banks and wealth management. During the two-day learning, the students learned the top financial knowledge in Switzerland.
This course was given by Franz Odermatt, a certified investment finance expert of the IfFP Institute for Financial Planning (IfFP China). Franz has more than 30 years of experience in investment, banking and other financial fields. He once worked for the UBS Group in global asset management and private banking fields, providing investment advice and PM services to institutions and ultra-high net worth customers. He is currently a partner of Crossbow Partners AG, Switzerland, and a lecturer at IfFP. The combination of market practice experience and academic research is the essential skill set of every lecturer of IfFP China.
Definition of private banks
The lecture redefined private banks as banks providing personalized banking, investment, tax management and other financial services to high net worth customers via specialist consultants. At the same time, Franz Oderma added that the role of private banks is not only providing investment advice and asset management services, but also providing charitable, artistic counseling or home office services, as well as in planning the current and future needs for customers or their families. Wealth management helps people plan their lives. Currently, the global investable property has reached 300 trillion US dollars. The rising Chinese market has become the focus of global attention.
Leading advantage
During the lecture, Franz Odermatt shared with the students advantages of Swiss private banks as a global benchmark.
Independent central bank
Political and economic stability
Neutral position, independent from any large group (United States, Eurozone, and China)
Powerful currency
Rule of law (independent tribunal)
Reputation of high service quality (bankers, lawyers, doctors, hospitals, etc.)
Deep understanding of cultural differences: Individualized customer service modes
Tradition of private banking: More than two centuries of consulting/wealth preservation history
A long tradition and culture of respect for and protection of privacy
Deep understanding in customers, unremitting services for customers
Trust and rule of law in financial institutions and client relationship managers
Numerous well-trained wealth management companies
Ecosystem dealing with multiple currencies, jurisdictions and languages
Client services in all major languages and currencies (Swiss francs, US dollars, euro, Japanese yen)
Challenges
At the same time, Franz Oderma also mentioned that in the new global economic situation, Switzerland, like other countries, inevitably faces the following challenges:
Contraction of profit margins (regulation, ultra-low interest rates, low volatility)
Growth: Wealth is created far away from Switzerland (United States, EM)
Increasing competition (Asia; American investment banks tap into the private banking business)
New rules on transparency and automatic exchange of information
Access to foreign markets (eurozone, etc)
Size of domestic market and banks
Automation, digitization, technological change, financial technology
Future trends
After a comparative analysis of the investment environment of China and Switzerland and the development of private banks, Franz Odermatt mentioned that the hybrid service mode of robots and manual services wealth management is the trend of wealth management in advanced countries such as Switzerland and Europe, Many banks have already started to adopt the new service mode.
At the same time, ESG has become a new European investment concept. In Europe, 55% of pension funds are invested in ESG-related industries and the investment has started to pay off.
Experience and lessons
A student asked: Switzerland is a globally recognized offshore financial centre in wealth management. We would like to know how Swiss banks, or wealth management practitioners, react to inevitable economic crisis or big losses. How does such experience apply to China? In response, Dr.Felix Horlacher, IfFP China's academic director, shared two basic ideas and Swiss practices:
Before making wealth planning for customers, we must fully communicate and understand, fully inform customers of their goals and product risks, and then make plans according to their personality. Thus, even in the event of an economic crisis such as 2008, 2018, or problems with some product services, customers will not blame us for all the results.
When crises and losses are inevitable, we must never escape. Instead, we must face customers, admit to failure, maintain transparent and honest communication with customers. Honesty and responsibility are very important, and also the most important professional moral quality in Switzerland.
At the end of the course, IfFP China's SCWPI (International) certification programme has completed three modules: Family Enterprise Wealth Management & Family Office Services, Global Wealth & Asset Management, and Private Banking & Wealth Management. The last module, Global Alternative Investments, will be held after the Spring Festival, bringing professional and cutting-edge expertise.
Join the SCWPI Certification Program to learn the wealth management experience of leading Swiss experts and obtain the global-recognized wealth management certificate.