In Private Banking - Size Does Not Matter

Melvyn Goh

Size does not matter. Small, medium, and large. I have benefitted from the sharing from the experts from UBS, Pictet and Maeki Baumann in Zurich on 31st March 2022. Each private bank had a different competitive strategy and stayed relevant to their clients. They leverage their “DNA” and remained client centric, spanning more than one to two centuries.

UBS: USD 2.6 trillion AUM, 70 000 plus employees and 50 plus countries

Pictet: USD740 billion AUM, 5000 plus employees and 25 countries

	UBS	Pictet	Maeki Baumann & Co
Founded	1862	1805	1932
Asset Under Management	2.6 trillion (USD)	740 Bn (USD)	10 Bn (CHF) 10.8 bn (USD)
Operating In	50+ countries	25+ countries	1
Number of Employees	70 000+	5000+	60+
Strategic Focus	Operates on 5 strategic pillars Play where UBS is positioned to win Technology as differentiator Simplication and efficiency Global Culture-one platform. Clients-Connections- connectivity In the nutshell, combines investment bank, private bank, and asset management business under one umbrella. Leverage cross banking.	Focuses on 4 main services Wealth Management Asset Management Alternative Investments Trading Pictet does not provide investment banking nor extend commercial loan services but focuses as a multi-boutique asset manager. It pioneered thematic investments spanning twenty years by identifying the megatrends, Pictet can select the long-term winners in the global stock markets.	Size does not matter. Maeki Baumann Investment Advisory, asset management Crypto Services Insourcing services for other banks Services for independent asset managers Maeki Baumann combines traditional private banking and crypto services very well. It is a clear believer of blockchain technology. It provides in-depth advice on most common crypto currencies and tokens.
Accolades	World’s best bank for wealth management for the seventh time in the Euromoney Global Awards for Excellence	Best Global Brand in Private Banking 2021-Financial Times Group	First independent Switzerland Transaction Bank Source – is also available in public domains

Major trends in wealth management

The change in investor demographics and customized digital products will be the biggest game changer in the wealth management industry. While the current customers are aging, the Gen-Z have a different approach in money management and the tools that come with it.

Global megatrends are powerful evolutions that can create compelling investment opportunities for our clients. The next decade will see tectonic shifts and unless wealth managers have the passion, intelligence, and madness to “unlearn, delearn and relearn” the new world order in inflation, interest rates, climate change, geo-politics, digitization, blockchain and tokenization and the changing demographics of the customer, we run the risk of becoming irrelevant to our clients and those missed opportunities will make us obsolete as professional wealth managers.

The Outside Observer

Know thy enemy and know yourself; in a hundred battles, you will never be defeated.” - Sun Tzu, Art of War. The three banks with different sizes knew how to exploit their heritage and DNA to their best advantage.

”UBS, Pictet and Maeki Baumann understood what they do not want and what they wanted. Pictet focused on preserving their two hundred years tradition in wealth management and did not enter the investment banking business while UBS leveraged their integrated offering of investment banking, asset management and wealth management services under a single global platform around 60000 plus employees based on a customer centric strategy. Maeki Bauman stayed nimble with 60 plus employees and pivot into investment advisory, crypto services and insource services for other banks.

One common strategic denominator is they understood their “DNA”, leveraged on their strength and stayed focused, continued to innovate, and remained relevant to their customers. Their asset under management ranges from USD 2.6 trillion, USD 740 Bn and USD 10 Bn (UBS, Pictet and Maeki Baumann respectively)

Disclaimer – the author assumes no responsibility or liability for any errors or omissions in the content of this sharing. The information is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness and all information shared is already available in the public domain.