For years, the financial industry has talked about disruption, while private banking has remained remarkably familiar. Now, powerful forces of change are converging, creating a once-in-a-generation opening for independent wealth managers. That was the central message of WealthSummit Chairman Claude Baumann’s keynote at the Alliance of Swiss Wealth Managers’ 10th CEO Summit in Gstaad-Saanen.
Alpine destination Gstaad-Saanen in Switzerland (Image: Adobe Stock)
Eight megatrends are reshaping the industry simultaneously. The great wealth transfer is moving capital and loyalty between generations. Longer lives and later inheritances are broadening clients’ needs. Digitisation, tokenisation and artificial intelligence are transforming financial infrastructure, advice and operations.
At the same time, climate risks are repricing assets, while globally mobile people and companies can relocate faster than ever. Even verified information and sound judgment are becoming scarce assets in an age of fake news.
Clients Are Building Own Ecosystems
The most important change concerns the client. Banks no longer automatically occupy the centre of a wealthy individual’s financial life. Today’s globally mobile clients increasingly assemble their own ecosystems, combining several banks, independent wealth managers (IWMs), digital platforms and specialist providers.
NextGen should not be understood simply as a group of young heirs. It is a mindset that can span people between 20 and 60. These clients bank across borders and institutions. They want access to investment opportunities, clubs, deals, and valuable contacts.
They appreciate technology and AI, but trusted personal relationships still matter more. Above all, they seek legal, political, and financial stability. Crypto assets are relevant, although the industry often overestimates their importance.
Independent Advantage
This shift creates a rare opening for IWMs. As banks transform themselves into technology platforms and reconsider their traditional models, IWMs can occupy the space between institutional scale and highly personal advice. Their advantage lies in combining independence with specialist expertise, strong networks and intelligent technology.
Yet independence alone will not guarantee success. An IWM must offer something that clients cannot easily obtain elsewhere. This may be deep knowledge of a particular market, access to exclusive opportunities or a network that connects clients with the right people. The objective should be clear: become difficult to replace within the client’s wider financial ecosystem.
Pressure to Consolidate
WealthSummit’s research into Switzerland’s IWM sector reveals the scale of the challenge. The country has 1,309 FINMA-licensed wealth managers, with 66 percent based in Zurich, Geneva and Ticino. Their median assets under management amount to 300 million francs, while 27 percent manage less than 100 million francs. Most firms employ fewer than ten full-time staff.
Profitability varies widely, with personnel and compliance costs playing a decisive role. Technology investments increasingly focus on client-facing applications, while firms outsource support functions. But scale remains critical. Below 50 million francs in assets under management, long-term survival appears increasingly difficult. Consolidation has therefore become an urgent strategic issue.
Adapt Before the Market Decides
The way forward rests on three priorities: differentiation, cost discipline and succession. Independent wealth managers need distinctive business models, strategically selected outsourcing partners and technology investments that produce measurable benefits. Cooperation through platforms can provide scale without sacrificing independence.
Succession may prove the most pressing issue of all. Many managing directors are over 50, almost all are men, and numerous firms have yet to resolve their future ownership or leadership. Succession takes years, not months. Those who act early can shape consolidation on their own terms. Those who wait risk having the market decide for them.
Wealth Summit’s presentation at the Alliance of Swiss Wealth Managers’ 10th CEO Summit in Gstaad-Saanen.
