Wealth Management & Private Banking
The private banking and wealth management market has been under pressure for several years now. Regulatory scrutiny, the global fight for tax transparency, the challenging macro economic environment and the digitalisation are fundamentally changing the landscape for private banks and independent wealth managers. Whilst the client assets held by banks in Switzerland have recovered to pre-financial-crisis levels, the market (still) is in a consolidating movement. We currently see the following M&A trends:
- Banks are still reviewing their offshore-market portfolios, aiming at focusing on selected core markets going forward, whilst selling or referring non-core books to better suited competitors.
- After various market exits there are still further foreign banking groups who review and challenge their Swiss private banking presence, and may decide to sell, whilst others have made a clear statement to stay and actively participate in the market consolidation.
- Larger Swiss players act as the main acquirers and consolidators are building up scale and international reach.
- Small private banks tend to defend niche, grow or merge/exit.
- Currently hesitant look of large players at opportunities overseas due to challenging market conditions in the home market.
- Slow consolidation within the independent asset manager's market, predominantly driven by the resolution of business successions.