In an age of digitalisation and AI, do private banks still have a role to play? At Reichmuth & Co Privatbankiers, Switzerland's youngest private bankers are staking their claim to a model based on independence, responsibility and a long-term vision of wealth. In this interview, Christof Reichmuth explains what still distinguishes an independent private bank in a rapidly changing environment.
Do today's clients, who themselves use digital tools and AI, still need you?
Even though today's customers can do a lot of their own research, they still need a bank that can turn information into coherent, responsible wealth management decisions. Digital tools provide data, but they don't provide vision, accountability or the ability to interpret it through market cycles. For complex assets, human advice and personal responsibility remain essential.
What are you better at than the others? What can't they copy?
We offer integrated wealth management. We were pioneers in pension services and direct investment in infrastructure. Above all, we invest ourselves in everything we recommend. The heart of our model lies in the combination of a long-term vision, personal responsibility and genuine independence. It's hard to copy, because it's not just about process, it's also about culture, mindset and shareholder structure. We are particularly relevant where trust, continuity and a high degree of personalisation are crucial.
Why will your bank still be independent in five years' time?
We are a family business owned by our partners, and our entire organisation is designed with the long term in mind, with a stable shareholder base. We have a solid foundation and the mechanisms we need to maintain this independence.
What has been the main change you've seen in your clients over the last five years?
Clients have gradually shifted their focus away from the short-term effects of crises - whether Covid, the war in Ukraine or, more recently, the tensions surrounding Iran - towards strategic allocations. Many are no longer looking just for performance, but for a global understanding of wealth, family, inheritance and responsibilities. As a result, discussions have become deeper and more strategic.
What are your customers' main questions today?
The main concerns are robustness, independence and geopolitical risks, but also currency hedging and the right balance between return and security. In the past, discussions focused more on pure investment tactics. Today, they are much more about how to preserve and structure wealth over several generations.
What preconceptions about your bank would you like to correct?
Many people still think that an independent private bank is necessarily small, traditional and a bit dusty. As the youngest private bankers in Switzerland, we combine personal responsibility, independence and entrepreneurial spirit with a strong desire to innovate and many years of experience.
How can you prevent regulation and costs from turning your bank into an unprofitable boutique?
We are not a boutique in the decorative sense of the term, but a specialist partner for demanding clients. Our strategy is clear: we concentrate on a few key markets and certain well-defined customer categories. We are also highly disciplined in the scope of our offering. We only develop activities in-house where we have genuine expertise and a tangible advantage for the customer over the competition. This prevents us from spreading ourselves too thin. Not all services need to be in-house. What's important is that they add real value for the customer and are in line with our strengths.
What types of customer are best suited to your approach?
Our approach is aimed above all at customers with a long-term vision who are looking for personalised, independent and long-term support. It is particularly suited to the needs of entrepreneurial families, wealth transfer situations and demanding private clients who prefer to delegate the management of complexity rather than manage it themselves. Conversely, profiles that are essentially transactional or exclusively oriented towards passive management solutions are less suited to our support model.
How important is the Swiss market to you?
Switzerland is the historic heart of our business and remains our main anchor in terms of positioning. More than three quarters of our clients are domiciled there, making it a central market for our development. Internationally, our presence remains focused, mainly on Germany and Austria. We favour a selective approach to our deployment, based on cultural coherence and strategic relevance, rather than on systematic internationalisation.