Swiss private banking’s transformation

By Jean-Francois Hirschel, Chief Executive Officer at H-Ideas

How do Swiss private banks navigate wealth transfer, digital demands, and industry consolidation while preserving their trust-based banking legacy?

By Jean-Francois Hirschel, Chief Executive Officer at H-Ideas

The world is in constant flux – geopolitics, climate, technology, demography. What is true one day may be obsolete the next. For Swiss private banks, the challenge is not to avoid this uncertainty, but to engage with it head-on. The new generation of leaders understands that proactive transformation is the only path to continued relevance. What are the most pressing issues they face – and how are they responding?

The largest generational wealth transfer in history

Across Swiss private banking, one hears countless stories of families gathered in boardrooms, each generation voicing different expectations for managing their wealth. Never before has the disconnect between generations been so stark – nor the stakes so high.

We are on the brink of the largest intergenerational transfer of wealth in history. For banks, this means one thing above all: preparation. Engaging families in meaningful, values-based discussions about long-term wealth management is no longer optional – it’s critical.

For the next generation, wealth must carry purpose. They will choose a banking partner not only for performance, but for shared values and cultural alignment. That requires private banks to clearly express who they are and what they stand for – beyond products or performance.

These expectations also extend to portfolio construction. Financial criteria matter, of course. But portfolios must increasingly reflect personal values, whether through sustainable investing, ESG, thematic strategies, or bespoke mandates. Flexibility and adaptability are no longer competitive advantages – they are baseline expectations.

And then there is the elephant in the room: technology. The next generation is digital-native. Seamless interfaces, instant access to information, and tailored interactions are not luxuries. They are necessities.

The changing landscape of Swiss private banking

Swiss private banking remains unique in its structure. Many institutions are family- or partner-owned. When your name is on the door, accountability takes on a different dimension – one that transcends clients and extends to previous and future generations. That sense of legacy instils a long-term mindset, one well-suited to the stewardship of client wealth.

Partnership structures also foster agility. In today’s environment, adaptability is vital. And the entrepreneurial spirit of many Swiss banks mirrors that of their clients, many of whom are entrepreneurs themselves.

Yet the pressure is building. Regulation, rising tech costs, and shrinking margins have made scale a strategic necessity. As a result, the industry has seen a wave of consolidation: Safra Sarasin acquiring Saxo, EFG buying Cité Gestion, Indosuez WM absorbing Banque Thaler. Gonet and One Swiss Bank are merging. UBP acquired Société Générale Private Banking in Switzerland and in the UK.

Some banks embrace acquisitions to gain access to new markets and talent. Others prefer organic growth, wary of the risks inherent in integration. Both strategies can work, but clarity of vision is essential.

The most significant event, of course, was the UBS takeover of Credit Suisse. Although the collapse shocked Switzerland’s financial sector, the rescue stabilised the system. Switzerland has a true global banking powerhouse. UBS controls an estimated 67% of the domestic wealth management market, raising questions around concentration and creating opportunity for competitors to redefine their role in this new landscape.

Reconciling experience, stability, and modernism

When digital watches emerged in the 1970s, many predicted the demise of the Swiss watch industry. Instead, it adapted and thrived. The same can be true for Swiss private banking.Emerging wealth hubs may appear more dynamic, but Switzerland offers a combination of stability, legal security, and a highly educated workforce that few can match. Its universities, business schools, and research institutions nurture innovation across disciplines – from finance and law to science and tech. This intellectual ecosystem is an asset the industry can leverage. Switzerland is also a major asset management hub, the third largest in Europe actually, gathering skills for investment and wealth management in the same country.Healthy competition from other jurisdictions is welcome. It challenges Swiss banks to evolve, to modernise client experience, and to remain relentlessly relevant. But what truly differentiates Switzerland is its ability to combine the old and the new: client relationships based on deep-rooted trust with forward-looking innovation.

Anchoring trust in a changing world

Leaders in Swiss private banking are actively addressing all the shifts we have commented on above. It"s not just about strategies and structures, but also about reinforcing the foundations of trust. Reducing wealth management to a purely financial exercise would be like saying life is only about breathing because we need oxygen. At the heart of the conversation lies the need to communicate the intangible values of purpose, integrity and cultural fit that resonate with clients and future talent alike.