For several years now, Switzerland and Asia have been vying for the title of ‘World's Leading Wealth Management Centre’. The competition is fierce, but it can also be highly instructive.

The Swiss and Asian wealth management models are often perceived as being very different: one is rooted in discretion and the long-term management of family wealth over several generations, the other caters to new fortunes, and a more transactional clientele relentlessly looking for new investment opportunities. This caricature is increasingly outdated. In fact, as client needs evolve, these two models are converging, and the future will belong to institutions capable of combining the best of both worlds.

Despite its often-prophesied decline, it is important to remember – as a starting point – that the Swiss financial centre continues to be regarded in Asia as the gold standard for wealth management. Its expertise in asset allocation, its solid legal framework and its culture of responsibility towards clients remain powerful differentiators on a global scale.

Switzerland: the gold standard

Even the turmoil surrounding the takeover of Credit Suisse did not erase the credibility premium of the financial centre, a premium that becomes an even more valuable asset in a context of strong international geopolitical and economic tensions. It is no coincidence that, from a regulatory perspective, Asia's leading wealth management centres draw inspiration in many respects from their Alpine competitor. In finance, imitation is rarely accidental.

In finance, imitation is rarely accidental.

Nevertheless, the comparison does not end there. Over the past two decades, one of the key success factors for private banks in Asia has been their great agility. Indeed, their success has been built on their ability to act quickly, thanks to their flexibility and responsiveness to client needs.

Asian clients, many of whom are first- or second-generation entrepreneurs, are well versed in the fast-paced nature of the markets; they remain deeply involved in decision-making processes and expect their bankers to keep pace. There, an institution's reputation is not based solely on its brand or balance sheet, but rather it is earned daily. Agility is paramount, and poor delivery is immediately penalised by clients.

This environment has fostered a culture of constant innovation, whether in terms of product strategy, structuring, digitalisation, digital assets or client service models. As a result, competition between banks is fierce, forcing them to constantly reinvent themselves or risk obsolescence. Responsiveness remains the watchword, and while prudence is essential, it cannot become an excuse for inertia.

Converging models

So what can Swiss private banks learn from Asia? The experience of the last twenty years has shown that innovation and agility are not incompatible with rigorous risk management, but rather a prerequisite for remaining relevant.

Organisations that have successfully evolved their operating models to improve their responsiveness – and thus meet the expectations of local clients – are the ones that have truly succeeded in Asia. Swiss institutions are a good example of this, as, according to Asian Private Banker, they currently account for around one-third of assets under management among the top twenty private banks in Asia.

In other words, the success of Swiss private banks in the region does not stem from the export of a rigid Swiss model, but rather from their ability to adapt this proven approach to local specificities.

However, we must not forget that the wealth management expertise of Swiss private banks remains a definite competitive advantage, which in turn is likely to inspire Asian institutions.

Indeed, with the gradual ageing of the wealthy population in Asia, the priorities of these clients are shifting. According to Wealth-X, no less than USD 2.5 trillion is expected to be transferred between generations in the region by 2030. Asian families are therefore increasingly interested in certain activities that are the hallmark of Swiss private banks, including estate planning and long-term asset structuring and allocation. In these areas, Switzerland's expert know-how gives it a clear edge.

The best of both worlds

This is reinforced by the extensive international network of booking centres developed by Swiss institutions over decades, which offers a tailored response to the growing demand for cross-border wealth management solutions from Asia, particularly at a time when most local players have yet to offer such comprehensive coverage.

For all of these reasons, the next decade will not be one of rivalry between Switzerland and Asia, or of competition between Swiss and Asian private banks. Quite the contrary: the future will be shaped by institutions that are able to leverage the strengths of both models and respond appropriately to the evolving needs of private clients.

The future will be shaped by institutions that are able to leverage the strengths of both models and respond appropriately to the evolving needs of private clients.

In the field of wealth management, tradition and disruption cannot be pitted against each other; the winners will be those who know how to combine the two, bringing together expertise and innovation without losing the human touch.