At a time when competition between financial centres is intensifying and artificial intelligence is revolutionising the profession of private banker, Georg Schubiger calls for greater self-confidence in Switzerland. Vontobel's co-CEO talks about the strengths of Switzerland as a financial centre, the Group's international expansion strategy and the changes that are reshaping wealth management.
Geopolitical tensions are intensifying and the global economy looks more fragile than ever. Is Switzerland currently benefiting from these uncertainties?
Yes, we can clearly see that. In a more uncertain environment, investors feel a greater need for guidance and advice. Switzerland's strengths are particularly appreciated internationally. Political stability, the rule of law, a strong currency and a reliable economy. These characteristics make our financial centre particularly attractive in turbulent times.
Are you already seeing an influx of capital into Switzerland?
We are indeed seeing some international investors re-evaluating their asset allocations. In the Middle East in particular, many investors are now reviewing their geographical exposure. Against this backdrop, Switzerland is often perceived as a stable long-term jurisdiction.
At the same time, the Swiss financial centre is under pressure. Hong Kong recently overtook Switzerland as the world's leading offshore financial centre. Does this worry you?
These rankings remind us that we must never take our strengths for granted. We must constantly defend them. Other financial centres pursue very active promotion policies and encourage investment in a targeted way. But Switzerland has excellent foundations. In particular, it is the birthplace of the world's largest asset manager. Unfortunately, we seem to have a particular talent for self-deprecation.
Does that annoy you?
We live in a world where competition has intensified considerably, including between financial centres. It is precisely for this reason that we should take inspiration from other countries, which know how to put forward their strengths with confidence and make the most of their competitive advantages.
When I attend international conferences and listen to representatives from other financial centres, I always hear the same thing. While others explain with conviction why their place is attractive, we Swiss spend our time discussing what we could still do better.
Don't get me wrong: of course self-criticism is important. But it must not lead us to play down our own strengths. That's what annoys me. Switzerland has exceptional strengths as a financial centre, and we should be much more assertive in defending them.
What do you see as Switzerland's main competitive advantages?
Our customer focus is unique. We have exceptional financial expertise and are able to serve international clients in many languages. At Vontobel, we can even advise our clients in Finnish. We also have many years' experience in managing a wide range of currencies and asset classes, as well as a remarkable pool of talent. Bringing together such expertise, such a diversity of skills and such proximity to clients in a single financial centre is relatively rare on a global scale.
Vontobel is currently expanding in Germany and the United States. Why these two markets?
These are two strategic areas for us. Germany is one of the world's leading markets for ultra-high-net-worth clients. Around 25,000 people have assets in excess of 30 million dollars.
Germany has a powerful entrepreneurial fabric. The entrepreneurial families we support often identify with our model, that of a bank driven by a long-term vision thanks to its family shareholding, but which also benefits from the transparency and discipline of a listed company.
Is that why you are opening a branch in Düsseldorf?
Exactly. Düsseldorf is a very attractive region economically. This new location will enable us to strengthen our local presence and be even closer to our customers. After Munich and Hamburg, Düsseldorf will be our third office dedicated to private clients in Germany. In Frankfurt, our teams focus exclusively on institutional clients.
At the same time, you are continuing to expand in the United States.
Yes, after strengthening our New York and Miami offices, we are now moving to Los Angeles. The West Coast offers considerable potential, both in terms of the concentration of wealth and the international nature of its client base. We have long been convinced that we needed to have a presence in the United States on both the East and West Coasts.
Is a local presence still important in wealth management?
It is essential. For wealthy clients, trust plays a central role. A physical presence enhances credibility and promotes proximity with clients. That's why we are developing our international network gradually and profitably.
Which business areas should drive Vontobel's growth in the coming years?
In the institutional business, we still see strong potential in bond solutions. Multi-asset mandates are also developing very favourably.
We are also seeing growing demand for tailor-made solutions that combine traditional investments, hedging strategies and structured products.
And in the private client segment?
Wealth management clearly remains at the heart of our strategy. Our ambition is to offer the highest possible level of service. Customers appreciate being able to speak directly to experienced specialists rather than being directed to call-centre structures.
Artificial intelligence is transforming the entire financial industry. How is Vontobel exploiting AI?
First and foremost as a support tool for our advisers. AI makes it possible to analyse information more quickly, evaluate portfolios more efficiently and feed back the most relevant information. This means that advisers can prepare their meetings in better conditions.
Will AI one day replace the customer adviser?
No. It will considerably improve the quality of advice, but not replace it. Wealthy customers are looking for trust, experience and discernment. These qualities will remain profoundly human. Technology accompanies the advisor; it does not replace him or her.
So how is AI transforming the advisory profession?
The demands are increasing. Advisers must learn to use these new technologies intelligently. Those who master these tools can gain in productivity and offer a better service to their customers. That's why we are investing heavily in training and the adoption of new technologies.
Look at how the profession has evolved. It used to be that advisers read their newspapers in the morning and then shared their analyses with their customers. Then came the computer, and much later MiFID, which was a gift to our profession.
a gift to our industry. These regulations have forced us to better understand our clients' real needs.
Today, we are entering a new phase. AI is enabling us to offer customised solutions much more quickly. I see this as a tremendous opportunity, particularly for private banking customers. In the future, they will be able to enjoy a level of service comparable to that currently reserved for institutional clients.
What will happen to banks that miss out on this opportunity?
They will gradually lose competitiveness. Customers now expect high-performance digital tools and efficient processes. Employees also want to work with modern technologies. Those who fail to invest risk losing both their customers and their talent.
Many people fear that AI will destroy jobs. Do you share this concern?
Major technological breakthroughs have always transformed existing professions. But they have also created new professions and new industries. I don't expect a mass disappearance of jobs, but rather a change in tasks and skills.
What concerns me most is what's in store for our children. For the next three to five years, we still have some visibility. Beyond that, there is total uncertainty. Many of the assistantships that our generation has enjoyed - myself included - will probably no longer exist. And yet these positions were often an essential step in gaining initial professional experience.
This raises some fundamental questions: how do we train the younger generations for the jobs of tomorrow? What tools should we give today's students to help them succeed in tomorrow's world?
We have a collective responsibility.
I understand the concerns of those who look to the future with apprehension. But there's no point in demonising AI. We cannot stop this movement.
Are you optimistic?
Yes, clearly. We are currently experiencing a technological transformation comparable to the great industrial revolutions of the past. It won't always be easy, but above all I see opportunities. Once again, the key will be to get people on board and create the right conditions for education and innovation. That's where the real challenge lies.
What would you like to see for the Swiss financial centre in the years ahead?
More confidence in ourselves. Switzerland has exceptional strengths and occupies a unique position in global wealth management. We should be promoting these strengths much more actively, with the support of both the authorities and the industry. I am convinced of this. Under these conditions, Switzerland will continue to be one of the world's leading financial centres.