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Definitely. The world has changed fundamentally in the last twelve months, entire industries are undergoing fundamental changes. As a wealth manager, it is simply no longer enough to offer a broadly diversified portfolio.

«Of course a challenge, but one I wanted»

The demands of clients have increased significantly in step with these changes as has an appetite for innovative solutions. Risk management has become extremely important, and this includes being able to systematically offer asymmetric pay-off profiles, among other things.

UBP is a family-run bank. You were previously CEO of a cooperative subsidiary of Notenstein La Roche. Is the difference like night and day?

The jobs are indeed very different. What has remained the same is my demand of myself to do my best for clients and staff every day. But the environment at a large retail banking group like Raiffeisen and a large owner-managed private bank is very different. At UBP, the client structure is completely different, as is the decision-making process. We serve different markets and I can count on a pool of very experienced senior bankers and asset management teams here. That is of course a challenge for me, but it was a switch I wanted.

The raison d'être in Swiss private banking is growth, growth, growth. But the client's view is often different: growth also means more risk. How do you deal with this at UBP?

I observe that clients want to be with a bank that is profitable and solid. That includes growth. When a bank stops growing and is barely profitable, clients become nervous. At UBP, growth is also important, but our ultimate goal is sustainability and to build long-term relationships. We also pay attention to maintaining the right incentives and a robust risk management environment.

Are acquisitions also appreciated by existing clients?

UBP has a history of successful acquisitions, such as the Swiss businesses of Lloyds and ABN Amro and of course Coutts. I strongly believe that in addition to organic growth, making acquisitions is also important for a bank. After all, it gives a company new impetus virtually overnight.

«Acquisitions have onboarded expertise and mindset»

Acquisitions often bring an element of positive disruption. We can see this now, for example in London, where within two years we have acquired ACPI and the wealth management business of Jefferies, and in Luxembourg, where we took over Banque Carnegie. Thanks to these acquisitions we’ve onboarded new expertise and new mindsets.

Is the coronavirus crisis triggering a new wave of consolidation on the Swiss market?

Not in the near future. A lot has already happened in Switzerland in this respect. However, opportunities might arise, which UBP would certainly look into.

Swiss banks have been pushing business in less developed markets, such as Latin America, for lack of other growth opportunities. This has entailed significantly higher risks, as evidenced by numerous suspected money laundering cases. How does UBP deal with high-risk clients?

With deliberate caution. In my experience, a private bank needs a critical mass and deep enough expertise in each market in order to manage such risks. But size is not enough. You also have to have relationship managers with the right mindset who, with a cautious attitude, assess and carefully review potential risks. Another important factor is that client-facing staff maintain a continuous and active dialogue with Compliance. Surprisingly, this is often the missing link.

One more outlook: Many Swiss private banks are using digital technology to differentiate their business models, seek new customer segments or establish a digital bank. What is UBP doing?

Digitization is of course a dominant theme at UBP. But for us, its main purpose is to fundamentally improve our offering and services for existing clients. But we remain true to our business model and our client segments in wealth management and asset management. As our CEO keeps saying: «You cannot digitize trust.»

Adrian Kuenzi joined Union Bancaire Privée in March 2018 and became head of the business in Zurich. Today, he is head of Europe. Previously, Kuenzi was CEO of Notenstein La Roche, which had been taken over by Vontobel in 2018. He also has a past as an investment banker with Goldman Sachs in Frankfurt. He has written his thesis in finance at the University of St. Gallen.