5 of the Most Innovative Swiss Private Banks
If there is one industry that seems to epitomize the Swiss financial sector - and the Swiss economy as a whole - it is private banking.
Serving as “white-glove” servants to the world’s wealthy has helped make Switzerland the financial powerhouse that it is today.
But times are changing - and the lucrative business of private banking is facing the squeeze. Over the past 13 years, the number of private banks in Switzerland has almost halved according to KPMG.
So how can the remaining firms survive?
Innovation is one answer. And some (small) Swiss private banks do innovation better than others.
Here is a breakdown.
Who are they?
A short overview reveals banks of relatively small size, but with broad reach and rich history.
Bordier & Cie
The Geneva-based private bank is one of the oldest in Switzerland with a history going back 175 years.
Established in 1844 as Bordier, Kurz, Pictet & Cie, it transitioned to its current name in 1876. Today it has branches in Europe (Geneva, Paris, Berne, Nyon, Zurich, Brest), Asia (Singapore, Hong Kong), and the Middle East (Istanbul). This gives it an international footprint that also has an influence on its broader perspectives.
Bordier is led by three unlimited partners - each with a vested interest and personal liability in the bank - Evrard Bordier, Grégoire Bordier, Christian Skaanild.
Maerki Baumann
Established in 1935, Maerki Baumann is a mid-sized private bank headquartered in Zurich with CHF 18.3 billion in assets under management (as of December 31, 2022). The small, but highly agile private bank specialize in wealth management for high-net-worth individuals and families, focusing on the staples of personalized service and investment solutions. Maerki Baumann is owned by the Zurich-based Syz family and two members of the family - Hans G. Syz‑Witmer and Dr Carole Schmied-Syz - sit on the board of directors. The CEO is Dr. Stephan A. Zwahlen.
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Cité Gestion
Originally a spinoff of Lombard Odier, where it served as a custodian and securities dealer Cité Gestion was established in 2009. It later received a full banking license in 2022. Its assets under management exceed CHF 7 billion. Most recently, Cité Gestion has completed a merger (in 2022) with Starus Capital which gives it a great range in the Latin American market. The executive management committee includes CEO Guy Barbey and Co-CEOs Laurent Kramer, Christope Uetlli.
Mirabaud Group
With over 700 employees, Mirabaud has a relatively broad international footprint; its branches range from Geneva, Zurich, Basel, to London, Luxembourg, Paris, Madrid, Barcelona, Valencia, Seville, Milan, Montreal, Dubai, Abu Dhabi, Montevideo and São Paulo. Founded in 1819, Mirabaud was one of founding members of the first Swiss stock exchange. As of December 2022, its assets under management totalled over CHF 31 billion. As a limited partnership under Swiss law, Mirabaud is managed by four partners: Yves Mirabaud, Lionel Aeschlimann, Camille Vial, Nicola Mirabaud.
Lienhardt & Partner
Despite its relative small size, Lienhardt & Partner in the Zurich has established itself as a strong universal bank with an agile, entrepreneurial tilt. The bank was established in 1868. The bank boasts a diversified revenue structure with a concentration on real estate, trading and bonds. With around 100 qualified employees, Lienhardt & Partner provides comprehensive advisory services in private banking. The bank is managed by Dr. Duri Prader, Daniel Meier, Urs Bayer.
Why are they innovative?
The innovations being spearheaded in the quiet realm of Swiss private banking are various. Some might be classified as small tweaks. Others have less to do with financial engineering and more with broader initiatives in innovation. Here is why these 5 Swiss private banks are at the forefront of innovation.
Bordier & Cie - From the lab to the stratosphere
Far from being stuffy and stuck in its ways, Bordier has advanced quite nicely with the times. In 2016, the bank launched its FinLab - an internal “think-tank” to experiment with new investment solutions and ideas. The FinLab project is headed by Bertrand Clavien and Véronique Grossen.
Another partnership with crypto bank Sygnum now allows Bordier’s (U)HNW clients to trade cryptocurrencies.
Last but not least, Bordier has signed on to support the SolarStratos project with its mission to fly a solar-powered airplane into the stratosphere.
Maerki Baumann - Venturing (in)to crypto
Punching above its (apparent) weight is nothing new for Maerki Baumann - also when it comes to new and innovative initiatives. In March 2023, the private bank announced a partnership with leading Swiss venture capital firm Redalpine to offer its (U)HNW clients access to the dynamic startup asset class.
Going back even earlier, Maerki Baumann has been an early mover in offering cryptocurrency investment opportunities to clients. In early 2023, the private bank went further to allow for staking of Ethereum in a partnership with InCore and SDX. In March 2024, the bank launched its a dedicated initiative - ARCHIP to expand its crypto services into a full-fledged brand.
Cité Gestion - Just tokenize it
Cité Gestion has done something which no other private bank has done - tokenize its own shares. The move - accomplished with support from digital asset firm Taurus and the CMTA (Capital Markets and Technology Association) is part of Cité Gestion’s ongoing foray into the digital assets and cryptocurrency space.
Mirabaud Group - Fashion and food
With an eye towards the “next generation” of opportunities from innovation, Mirabaud has launched its Lifestyle Impact and Innovation fund targeting ventures that are focused on Gen Z and Gen Alpha. The fund’s focus includes cosmetics and fragrances, watches and jewellery as well as B2B and B2C business services in the same areas. The fund is led by former LVMH executive Renaud Dutreil and David Wertheimer, son of Chanel's Gérard Wertheimer. In 2021, Mirabaud announced an investment into Highsnobiety, the media and shopping platform founded by David Fisher in 2005.
Besides its own venture-focused fund, Mirabaud has also partnered with Zebra Impact Ventures to bring investments to companies helping impact the global food chain. The partnership powers Mirabaud’s Regenerative Growth I fund.
Lienhardt & Partner - Quietly connected
Without attracting undo attention, Lienhardt & Partner has used several partnerships to position itself as a continuing innovator in private banking services.
In 2017, the Zurich-based bank brought its B2B settlement platform to insurance giant Generali to help the latter upgrade its pension and investment product distribution.
Lienhardt & Partner also hooked up with Vontobel in 2019 when the latter launched the first structured product in the form of an asset token.
What is in store for Swiss privagte banks?
If Swiss banking is to survive it will need to innovate. Some are doing it - others not so much.
With this in mind, what does the landscape look like for private banks in Switzerland?
The recent Private Banking Market Update 2023 report from Ernst and Young highlights continued challenges for Swiss private banks when it comes to margins - but stable growth in net new money - plus other factors to keep and eye on.
Count on the most innovative players making faster strides than their stuck-in-the-mud peers over the next few years.