July 20, 2024

The Swiss test in cross border wealth management continues

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Ranked number 1, Switzerland continues to dominate the cross border wealth management services followed by Hong Kong, then Singapore. With almost 239 banks operational as of 2021, Switzerland is one of the dominant financial hubs across the globe. Various banking sectors in the world are known to have adopted Switzerland’s regulatory systems. A forefront leader in providing innovative banking experience, Switzerland’s banking sector has always embraced technology by digitizing its services and establishing robust systems for data security. Furthermore, the economy of Switzerland is getting digital while an increasing number of banks are pushing digital currency for transforming into a digital economy.

The business in Switzerland’s banking sector spiked in the year 2021 as it registered a growth of 10.9% in commission business and services. Reportedly, it has given the highest boost to the banks’ net income since 2015. Furthering its uptick in revenue, the aggregate balance sheet of all the banks in Switzerland recorded a growth of 3.5%, totaling a massive CHF 3,587.8 bn as of 2021. Liquid assets grew by 11.1% and it has witnessed a sharp rise since 2011, from CHF 259bn in 2011 to CHF 760.6 bn as of 2021 owing to Basel III liquidity rules. Mortgage loans look steady on the balance sheet possessing 31.6% of total assets. Low interest rates have majorly attributed to the growth and residential property mortgages have shot up resulting in an increase of 40% in mortgage loans during the period of 2011-2021.

Analysis shows, Switzerland’s financial sector contributes about 10% of the nation’s GDP. A notable mention, the embedded finance industry of Switzerland is expected to touch USD 1.197 million by the end of 2022 with a growth rate of 30.7% annually. Projecting the forecast period from 2022 to 2029, Switzerland’s embedded finance industry is expected to generate a revenue of USD 2,976.7 million by 2029 from USD 1,197.1 million as of 2022.

Swift Investments for Switzers

Geneva based Syz capital, a subsidiary of Syz group and one of the leading boutique private markets investment firms has been offering exciting investment opportunities such as direct investments, thematic funds, tailor made solutions and has opened doors to niche investments in alternative investment and private equity to a broad range of clients since it was established in 2018. It is reported that the firm currently manages assets worth nearly CHF 2 billion and plans to expand its portfolio to London and the countries in Asia in the coming years.

As reported in February 2022, Syz Capital partnered with Zurich based Saturnus capital, a private equity firm, and acquired a controlling stake in SK Pharma, a pharmaceutical logistics firm based in Germany. Growing at a Compound Annual Growth Rate (CAGR) of 28% as analyzed in the past three years, SK pharma has been rising seven times faster than Germany’s health care industry, as analyzied in the past 10 years, thus speeding up Syz capital’s expansion through this acquisition.

In appreciation for its unique investment services, Syz capital has been awarded ‘Best Boutique Private Markets Investment Firm Switzerland 2022’ at International Business Magazine. The award has been conferred based on its money making and rare investment opportunities offered to millions of investors in Switzerland.

Banking on the Swiss Model

Banque Syz, also a subsidiary of Syz group and one of the emerging leaders in private banking has been offering exceptional banking experience fusing it with asset management providing effective guidance based on the investor’s risk appetite and offering tailor made investment solutions to the Switzers looking to yield a handsome profit.

Run by top talents such as Philippe Turrian who is currently the head of Client Solutions and Marketing & Communication with a ton of experience in the wealth management business, Banque Syz lends meticulous research, gathering solid macroeconomic data and hence introducing a wide spectrum of unique investment opportunities to seize.

As reported in January 2022, Banque Syz acquired Zurich based BHA partners, an independent asset manager, gaining a significant advantage to further its business domestically. Reportedly, the Assets under management (AUM) involving this acquisition is worth a massive CHF 1bn, making it a milestone acquisition for Banque Syz. Post the acquisition, the ‘Syz multi- custody offering’ was launched where BHA’s clients will have access to Syz’s expertise in investment and will be able to hold their assets in their existing bank, given the choice. The alliance will also aid Banque Syz in expanding its market to the German speaking crowd while heightening its wealth management impression in Zurich.

In recognition of its efficient, vibrant and innovative financial services, Banque Syz has won 2 awards at International Business Magazine. The awards conferred are ‘Best Investment Management Platform Switzerland 2022’, ‘Most Innovative Private Bank Switzerland 2022’. Booming with digital banking and enhancing consumer choice make Banque Syz a deserved winner.

Switzerland, an emerging Banking powerhouse is witnessing major changes in its business models while digitization is the key focus. The nation has been pretty open as it is reported that 50% of Switzerland’s population currently uses e-banking and the number is expected to impress even more. Biometrics, digital investing, gamification, use of blockchain technology is the beginning of a new era in Switzerland’s banking experience. According to a survey, at least half of the banks in Switzerland are expected to introduce crypto based investment products such as equities and long term bonds by 2025 or so. Lastly, the secrecy offered to clients by the banks of Switzerland will continue to gain a special interest from around the world.

Blog By Harish Rajulu

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