In the wake of the Custodian Bank Awards organised by the Alliance, Nicole Curti looks back at the sector's strategic priorities, which include consolidation, pressure on business models and the challenges of succession. Three major themes stand out: raising the profile of the industry, structuring an ecosystem that is still fragmented, and supporting the emergence of new generations, both among customers and asset managers.
By 2028, what do you hope to have achieved with the Alliance?
In my view, the most important thing is to have contributed to the further structuring of the industry while preserving its DNA. The Alliance must continue to act as a platform where players who are both competitors and interdependent - asset managers, banks, regulators, auditors, etc. - can discuss and exchange ideas.
By 2028, the challenge is to have increased the visibility and understanding of the independent asset manager profession among the general public. Even today, many private clients and even bank Relationship Managers don't have a clear idea of what we do, or how we constitute a credible alternative to the banks.
I would also like to see the Alliance create more synergies between its members, particularly between the founders. Initiatives along these lines already exist. They now need to be structured and expanded.
Finally, a key point will be the transfer of the business. In a few years' time, the question of succession, whether on the customer or manager side, will be unavoidable. If we manage to support this transition by integrating a new generation, it will be a major success.
What are the current priorities for EAMs in Switzerland?
Today, a lot of discussions revolve around profitability: pressure on margins, rising costs, the need to grow, recruit and structure teams. These are real issues, especially for the most established structures.
But the strength of the independent asset manager lies precisely in his ability to maintain a personalised relationship with his customers. This presupposes a size that preserves the quality of the customer relationship. So the real challenge is not just growth, but the consistency of the model.
In what areas does the Alliance need to strengthen?
The first area is clearly education. We need to do a better job of explaining what an independent manager is and why this model can meet the expectations of today's private customers. The problem is not just competition from the banks, but the fact that many customers don't even ask the question. The market remains highly fragmented, with a large number of players, and the choice is often based on a person rather than a brand.
Nevertheless, there are some interesting developments. Lawyers, for example, are increasingly directing their clients towards independent managers. This shows that the model is gaining in credibility.
In addition, the Alliance must continue to structure its dialogue with regulators and other professional associations. The aim is not to lobby, but to establish a relationship of trust and credibility.
Finally, as I mentioned earlier, the NextGen issue is central. Whether on the client or manager side, succession is becoming a major issue. Many founders are approaching a turning point, and we need to prepare for this transition.
The Alliance has just celebrated its 10th anniversary. During this decade, what have been the sector's most structuring transformations?
The first transformation is the consolidation of the banking sector. The number of players has fallen sharply, which has profoundly changed the environment. For independent asset managers, the introduction of regulation in 2022 marked a turning point. It brought more constraints, more costs, but also greater legitimacy. It has helped to clean up the market, with a number of players disappearing or opting out of the regulatory framework.
At the same time, the sector remains very dynamic. Many new companies continue to be created. This reflects both the attractiveness of the model for bankers and an evolution on the part of customers, who are showing increasing maturity and openness to alternative solutions.
What do you remember about this year's Custodian Awards?
What stood out for me was a message that was very clearly expressed, particularly by Sergio Ermotti. The Swiss financial centre cannot be built and prosper simply because of the difficulties encountered in other parts of the world. If wealth management works well in Switzerland, it cannot be simply because it works less well elsewhere. This is neither a strategy nor a sustainable value proposition.
This forces the industry to ask itself the right questions. What is our real added value? What sets us apart, beyond stability or context? In my view, the answers lie in the quality of our service, our ability to offer customised solutions, the depth of our expertise and, above all, the diversity of the Swiss model, where banks and independent asset managers coexist.
It is precisely this complementarity that is the strength of the market. And it's also what the Alliance seeks to encourage by fostering an ecosystem where players, even competitors, are able to talk to each other and move forward together.
Finally, what I would also like to highlight is the commitment of the banks at this year's event. Their presence and their interest confirm that the independent asset manager segment is now recognised as a structuring element in the landscape.
What does a custodian bank need to be for an independent asset manager today?
Today, expectations are high. Financial solidity remains a basic requirement, as do the stability of the teams and the quality of the reputation. But the differentiating criteria lie elsewhere. Operational excellence is essential, as is competitive pricing. Above all, technology has become a central element. Managers expect integrated systems that can interface with their own tools, with a high level of automation. It is no longer just a question of executing orders, but of offering a fluid and efficient infrastructure.
Have custodian banks taken the measure of the transformations wrought by independent asset managers?
On the whole, yes, but very unevenly. Not all banks are moving at the same pace, depending on their resources and strategy. What is clear, however, is that the segment is now recognised as strategic. Switzerland remains a very specific market, with a density and dynamism not found elsewhere.
The business model is changing, with a clearer separation of roles. Banks are moving towards a role as platforms, providing asset custody, execution and operational infrastructure, while independent asset managers are concentrating on customer relations and advice.
However, there is still room for improvement. Banks could be more proactive in the way they interact with asset managers, particularly with regard to their asset management offerings. At present, these interactions are sometimes still too timid.