For some time now, Rothschild & Co has pursued a strategy that focuses on a small number of attractive markets. But the firm is just too small to maintain two offices in Asia, CEO Laurent Gagnebin tells finews.asia.
Laurent Gagnebin, you gained a considerable amount of new money last year with 719 million Swiss francs ($713 million). Nevertheless, assets under management have more or less stagnated. Why?
Yes, last year was very pleasing in terms of new customer profits. One of our best years ever. Unfortunately, the sharp corrections on the markets in the last quarter have temporarily compensated for this positive development.
In which markets did you acquire new customers?
We were able to grow primarily in Germany and Switzerland – two of our onshore core markets – and with Latin American customers.
What arguments differentiate Rothschild from other renowned private banks?
For potential customers, the most important thing is certainly our independence from our own products and the long-term perspective in the management of the assets of our customers. We, therefore, have no conflicts of interest and can objectively recommend the best investment opportunities to our customers.
«For the Rothschild & Co Group, of course, Asia remains very important»
Another special feature is that, as Rothschild & Co Group, we frequently invest together with our customers.
Last year you drew a line under your ties with Edmond de Rothschild in Geneva. What were the reasons?
This agreement was preceded by a long process. Since we have always considered ourselves competitors, it made no sense to be involved. With the agreement, we have dissolved these holdings and also made the use of the name Rothschild clearer.
You want to focus on wealth management and private banking in the future. Nevertheless, you closed your location in Singapore. Why?
For some time now, we have pursued a strategy that focuses on a small number of attractive markets. We were just too small in Asia to maintain two locations (Singapore and Hong Kong). For the Rothschild & Co Group, of course, Asia remains very important.
«Rothschild & Co Group is the eighth generation of a corporate bank»
In the future, we want to focus even more on Europe in wealth management. Last year, for example, we opened a new office in Düsseldorf and hired a team of experienced bankers there.
You have said you want to expand your business in Switzerland. How far did you get in the last year?
This has been an important focus of ours for a long time. We were able to gain many new customers in Germany and are currently recruiting additional client advisors. So it's moving forward.
Who is your target client in Switzerland?
We are the right partner for wealthy individuals, entrepreneurs, and families who value a long-term investment strategy. The goal is to preserve assets with attractive performance.
You also want to be a bank for entrepreneurs. How do you live up to this claim?
The Rothschild & Co Group is the eighth generation of a corporate bank, so this is part of our DNA. Specifically, we are implementing this, for example, in the global advisory division, where more than 3,000 employees advise companies on financing and mergers-and-acquisition activities.
«In the back office, we have fewer employees»
At Rothschild wealth management, we work very closely with our colleagues at global advisory. This global network of know-how and experts ultimately also benefits our customers. We are also involved with Venturekick in Switzerland and are well-anchored in the startup scene.
You have stagnated on the personnel side this past year. Do you have any plans to hire new people in 2019 - and if so, which traits do you want to develop?
The bottom line is that we do not have more employees, that's right. However, we have further expanded our customer care capacities and, for example, hired more than 10 new consultants in Geneva and Germany. In the back office area, we have slightly fewer employees for this.
What role does digitization play in your business model?
We have invested heavily in new technologies and platforms over the past three years. In addition to improved e-banking offerings, we have also developed a solution that digitally supports our advisory offering and thus improves the advisory process for customers.
«We want to become more digital both internally and externally»
Our customer advisors have more time for the customers. Because the human factor and, thus, the personal contact with our customers is and remains central to us.
What are your top three priorities this year?
First, we want to expand our advisory offering and make it available to more clients. Second, our goal is to continue to grow in existing target markets. And third, we continue to invest in new technologies to become more digital both internally and externally.
Laurent Gagnebin joined Rothschild Wealth Management Equitas, the Genevan arm of Zurich-based Rothschild, in 2011. Prior to that, the 42-year-old ran Investec Bank in Geneva. He got his start in finance at Goldman Sachs in Switzerland, after working in the luxury hospitality industry for several years following his education at the École hôtelière de Lausanne. He took over as head of Rothschild Bank in Switzerland in 2016.
