ZHAW Wealth Management Blog

A Blog of the ZHAW Zurich University of Applied Sciences

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NextGen wealth management clients

Social Media and Wealth Management: Servicing NextGen Wealthy Clients

Digital transformation has significantly reshaped all banking sectors, transforming traditional banking practices into dynamic, technology-driven services. Social media’s integration into banking has been one of the more recent changes, offering new avenues for client engagement, marketing, and service delivery. For Swiss wealth management banks, known for their discretion and reliability, adapting to this digital shift has become crucial, especially with the emergence of a new generation of wealthy clients: the so-called NextGen.

Christoph Künzle
Kategorie: Strategy, Technology
Forbes 400

Forbes 400 List: U.S: UHNWI Wealth Creation (1990-2020)

The landscape of wealth management for ultra-high-net-worth individuals (UHNWI) continues to evolve, as highlighted by the Forbes 400 list of wealthiest individuals living in the USA. A recent article has analyzed the Forbes 400 list back to 1990 to determine the source of wealth creation across industries.

In this blog post, I will review this article and highlight what I believe Swiss wealth management banks should do to maintain their relevance and leadership. In sum, I will argue that Swiss wealth management banks should focus on understanding the primary sources of wealth creation among UHNWI, adapt to their evolving needs by embracing technology and digital transformation, expand and diversify their asset management services, and maintain personalized wealth management while ensuring robust regulatory and compliance frameworks.

Christoph Künzle
Kategorie: Strategy
Help me, ChatGPT

“ChatGPT, help! I Am in Financial Trouble” – Why Wealth Management Banks Beat AI Every Time

Wealth management banks may be the hidden heroes in a world where AI is becoming increasingly prevalent. As a recent journal article demonstrated, AI can handle data and automate processes – but the value of human touch in wealth management is unparalleled.

In this article, I explore why wealth management banks excel where AI falls short, highlight the importance of empathy, trust, holistic financial planning, regulatory navigation, and personalized client education.

Christoph Künzle
Kategorie: Investments, Strategy
FinTech partnership

FinTech Partnerships for Wealth Management Banks?

A recent journal article has reviewed the current state and future direction of the FinTech landscape, mainly focusing on the retail banking space. While many retail banks around the world have partnered with FinTech companies to enhance their services, I believe the question of partnering with FinTech companies is more complex for wealth management banks. With this blog post, I will explore opportunities and challenges for wealth management in partnering with FinTechs, focusing on how these partnerships may benefit HNWI clients and addressing concerns about value chain integration.

Christoph Künzle
Kategorie: Strategy, Technology
PE Performance

Private Equity for Wealth Management Clients: Does the Case Still Hold?

PE has become a popular investment choice for wealthy clients seeking higher returns beyond public markets. A recent Harvard Business School publication, “Does the Case for Private Equity Still Hold?”, offers a cautiously positive outlook on PE, despite its challenges like market saturation and high fees.

As a former PE executive myself, I find that PE still offers unique opportunities for wealth management, particularly through exclusive investments. However, wealth management banks must carefully select PE offerings, focusing on diversified portfolios and transparent fee structures to ensure sustainable value for (U)HNWI clients.

Christoph Künzle
Kategorie: Investments, Strategy

From Financial Literacy To Financial Well-Being: Enhancing Wealth Management

For wealth management banks, the apparent correlation between financial literacy and financial well-being represents not just a corporate responsibility but a strategic business opportunity. By integrating financial literacy into their many services, wealth management banks may build more robust and intimate client relationships, develop more personalized products and services, and differentiate themselves from their peers in a competitive market.

Christoph Künzle
Kategorie: Investments, Strategy
Female Wealth

Female Wealth – 3 Benefits For Wealth Management Banks

A lot has been written about new client segments and demographics in Wealth Management. The overarching theme may perhaps best be summarized as a pressing need for greater inclusivity. This blog post explores three critical insights from a recent article and summarizes what benefits these developments bring for wealth management banks.

For many wealth management banks, the path forward involves a clear commitment to change at all levels of the organization. It’s about building a culture that not only attracts but also retains the best talent (regardless of background). By fostering an inclusive environment, wealth management banks can ensure they remain relevant and competitive in a rapidly evolving financial landscape.

Christoph Künzle
Kategorie: Investments, Strategy
Robo advisor for wealth management banks

AI In Portfolio Management – 3 Ways How Wealth Management Banks Benefit

The integration of Artificial Intelligence (AI) into portfolio management could bring a shift in how wealth management banks offer investment services to their clients. A recent paper titled “Enhancing Portfolio Management Using Artificial Intelligence: A Literature Review”, to which the Head of our Institute, Prof. Dr. Peter Schwendner, guided me, offers a comprehensive overview of this integration, illustrating the potential of AI to revolutionize asset allocation, client service, and operational efficiency.

With this blog post, I will try to showcase the article’s findings from a wealth management bank’s perspective and outlining strategies for harnessing AI in portfolio management, while navigating the challenges associated with transparency, fairness, and compliance.

Christoph Künzle
Kategorie: Strategy, Technology
GenAI and robo-advisors in Swiss Wealth Management

GenAI as the new Robo-Advisor? A Revolution in Swiss Wealth Management

The integration of Robo-Advisors and GenA) within wealth management hints at a transformative shift, also for Swiss Private Banks. This blend of advanced technology offers new horizons in personalized and efficient wealth management solutions, potentially reshaping the way advice is delivered to private clients.
For Swiss Private Banks, this represents an opportunity to further sharpen their value propositions, offering clients hyper-tailored investment strategies at scale.

Christoph Künzle
Kategorie: Investments, Strategy, Technology
BoD Members

Swiss Wealth Management Banks: Boards of Directors and Gender Diversity

Swiss wealth management banks show a preference for a lean board structure, as evidenced by our data . The number of board members varies, with a minimum of 3 members in some banks and a maximum of 13 in others. Notably, a significant portion of the banks analyzed have between 5 to 6 board members. This trend suggests a strategic choice for efficiency and perhaps more effective governance, enabling these banks to navigate the complexities of wealth management with agility.

Christoph Künzle
Kategorie: Strategy