Greater competition leads to more customization.
Amid an improving monetary landscape and increased investment banking opportunities, many of Western Europe’s leading private banks are seeing a strong resurgence in assets under management and growth in profitability. Yet, despite these positive trends, the region faces significant long-term geopolitical and economic risks that make achieving industrial excellence more complex.
As clients continue to accumulate more and more wealth, their demand for highly specialized services intensifies. This often leads them to use several private banks to achieve their evolving goals.
In response to the growing challenge of customer retention, banks are increasingly investing in developing their technological capabilities, making this a fundamental strategy for the growth of the sector. Simultaneously, large banks in the region are pursuing inorganic growth strategies to strengthen their market position by acquiring smaller, reputable local institutions.
This year’s winners distinguished themselves by consistently providing the best wealth management services to their clients, not only anticipating these trends, but also excelling in navigating them.
Best private bank: UBS
Since UBS completed the acquisition of Credit Suisse in mid-2023, UBS Private Wealth Management is now the largest private bank in the world, with a staggering $2.6 trillion in invested assets.
According to a study by KPMG Switzerland, these impressive figures make the giant larger than all other Swiss banks combined in terms of assets invested in the wealth management segment alone.
However, while the bank’s undisputed leadership in Western Europe is evident, UBS’s impact goes well beyond that. The company’s depth of products, offerings and market positioning gives it a significant advantage over its varied competitors.
One of its latest developments, putting the power of artificial intelligence at the service of its clients, was the launch of a tool capable of quickly identifying potential merger and acquisition transactions by analyzing a database of more than 300,000 businesses in less than 30 seconds.
Best private bank for sustainable investing: LGT
LGT made significant progress last year towards its ambitious target of increasing client allocations in sustainable investments to 80% by 2030, as part of its flagship 2030 Sustainability Strategy.
The private bank has recently launched pioneering funds, such as the LGT PB Sustainable Transition Enabler Fund, which focuses on investments facilitating the transition to a low-carbon economy.
Additionally, the launch of GIM NextGen, a new share class co-investing with the Princely Family of Liechtenstein, has expanded sustainable investment opportunities for the bank’s clients.
The bank’s active management strategy includes increased engagement with businesses on sustainability issues, ensuring business alignment with environmental goals. LGT has also joined critical initiatives such as the UN-backed Principles for Responsible Investment’s Advance human rights collaborative initiative, strengthening the bank’s impact on sustainable practices.
LGT also hosted its first LGT Climate Conference in Vienna, bringing together more than 330 clients and executives from various sectors to discuss climate science and investing.
Best digital private banking solutions for clients: Santander Private Banking
Santander Private Banking’s drive to offer more and better, globally integrated offerings is firmly focused on improving its own digital offering, already best in class.
Recently, the Spanish giant upgraded its flagship banking app, allowing relationship managers in Miami and Switzerland to access customer accounts on mobile devices for efficient management on the go.
In mid-2023, the bank also rolled out secure digital custody of cryptographic keys, providing high-net-worth clients with strong digital asset security.
Additionally, the bank used digital tools for environmental, social and governance (ESG) reporting, launching reports containing environmental and social metrics that leverage advanced data analytics across six key markets.
It plans to extend these services to all European markets by 2025, deepening the bank’s ethical investment offering.