Who Will Win Tomorrow’s Wealth Client?

I suspect many Swiss bankers still think of Revolut as the card their clients use on holiday. That interpretation is becoming harder to defend.

According to news wire Reuters, Revolut has applied for a Swiss banking licence and plans to invest more than 150 million francs in the country. It already has 1.3 million Swiss customers.

For me, the interesting question is where those relationships lead. An app used for small transactions can become a familiar financial companion. When a client’s wealth grows, that familiarity may count for more than an institution’s history.

Familiarity Is a Competitive Advantage

I would not assume that affluent clients will suddenly transfer everything to Revolut. Wealth management involves complexities that a convenient interface alone cannot resolve. But banks should take seriously the possibility that clients will divide their financial lives among several providers.

That is where I see the challenge for private banking. A bank can retain substantial assets while losing influence over the client’s wider decisions. Being the custodian does not automatically make it the first port of call.

Loyalty Must Be Earned

I believe established banks still have powerful advantages: expertise, financing, personal relationships and experience with difficult situations. They need to make those advantages tangible. Prestige becomes less persuasive when the everyday experience feels cumbersome.

Revolut’s Swiss ambitions therefore strike me as a test of relevance. Tomorrow’s wealthy clients are already choosing the services they find useful today. I would pay close attention to those choices.

I have heard plenty of promises about artificial intelligence transforming wealth management. This week’s announcement feels more concrete.

As news wire Reuters reports, Anthropic has launched Claude for Financial Advisors, connecting AI with wealth-management software to help prepare meetings, review portfolios and handle follow-up work.

What interests me is the potential change in how advisers spend their time. Gathering information, assembling documents and recording conversations are necessary tasks. Clients, however, rarely regard them as the reason they pay for advice.

More Time for What?

I can see a substantial opportunity for independent wealth managers. If AI reduces the effort required to prepare thoroughly for each client, a smaller team may be able to provide a broader and more responsive service. That could change the economics of personal advice.

Yet I am unconvinced that efficiency automatically produces better relationships. An adviser who saves two hours can spend them understanding a family’s concerns – or simply squeeze more appointments into the diary. The technology enables both.

Judgment Becomes More Visible

My view is that AI will make the value of human judgment easier to assess. When polished presentations and comprehensive summaries become widely available, advisers will have to demonstrate what they contribute through interpretation, discretion and difficult decisions.

I would welcome that development. Wealth management should reward people who understand what matters to a client and can explain the consequences of a choice.

If automated workflows create more room for those conversations, AI could improve the profession considerably. The outcome depends on how advisers use that room.

I can understand why Goldman Sachs wants to meet wealthy heirs early. According to the New York Post, its two-week investment programme brought together around 50 participants aged 18-23, covering financial basics alongside private markets, crypto, art and sports-team ownership.

My first reaction is positive. Inheriting wealth does not mean inheriting the confidence or knowledge to manage it. Giving successors a chance to ask questions before major responsibilities arrive seems sensible.

Education Also Builds Relationships

Of course, I also see the commercial logic. A bank that teaches, introduces peers and opens doors has an opportunity to become familiar to future decision-makers. Those relationships may prove valuable long after the programme ends.

There is nothing inherently wrong with that. But I would judge such an initiative by whether participants become more capable of making independent decisions. Good financial education should equip them to challenge advice, including advice from the institution providing it.

Successors Have Their Own Agenda

I have become increasingly wary of treating NextGen clients as younger versions of their parents. They may inherit the same assets while bringing different ambitions, interests and expectations to the relationship. A bank needs to discover those differences.

Goldman’s programme makes me wonder how many private banks are prepared to invest in successors before they become significant clients. I suspect the answer will matter. Family wealth can pass from one generation to another in a signature. Trust takes longer – and no bank can assume it will be included in the transfer.

Reading Jing Daily’s interview with Arne Eggers, managing director at luxury communications firm Karla Otto, I kept thinking about private banking. His observations concern luxury brands, but I believe bankers would benefit from listening.

Eggers argues that many global brands underestimate Chinese consumers’ sophistication. Younger shoppers in major cities increasingly favour understated design, niche labels and authenticity. A famous name and a prominent logo no longer guarantee their attention.

The New Luxury Is Access

What particularly struck me is his description of exclusivity shifting towards access and knowledge. Luxury increasingly means discovering something exceptional, enjoying a distinctive experience or investing in health and longevity. The expensive object has more competition for the client’s wallet.

For me, this raises a useful question for wealth managers: how well do they understand what their clients want wealth to make possible? An investment portfolio matters enormously. So does understanding the ambitions, interests and family priorities behind it.

Asia Cannot Be Managed from Headquarters

Eggers also challenges the habit of treating Asia as one market. Successful brands build local relevance through cultural understanding and cooperation between global and local teams. He highlights Bangkok’s growing appeal as a luxury and cultural destination.

I see a clear lesson for private banks here. An Asian growth strategy needs more than a regional office and translated brochures. Advisers need the authority and curiosity to understand the people they serve. Prestige travels; understanding requires time on the ground.

Relationships Still Make the Difference

His thoughts on AI are equally relevant: technology improves analysis and measurement, while human judgment and personal relationships remain essential.

My takeaway is that established brands must keep earning their relevance. I believe the same applies to private banks. Their history can open a door. What they understand about the client will determine whether it stays open.

Read the full interview with Arne Eggers in Jing Daily.

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.

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.

Read more.