In an environment marked by regulatory pressure, changing customer expectations and the emergence of AI agents, private banks are having to rethink their business model in depth. Kim-André Potvin looks at how a niche bank can adapt, between differentiation, proximity and the integration of new technologies.
What are the essential changes that Switzerland's private banks are facing today?
The changes are profound. Firstly, customer relations have changed radically, and this trend is set to continue. It no longer follows the same codes. Expectations in terms of interaction, responsiveness and personalisation are far removed from what they were a short time ago.
At the same time, the regulatory framework has intensified to the point where it is now a reality with which the sector has to contend. In a highly turbulent environment, transparency and control requirements are becoming more stringent, with operational and economic implications for all institutions.
Finally, in a mature market, it is clear that the diversity and depth of the offer make differentiation more crucial than ever.
Where is Bonhôte currently focusing its investments to support growth and differentiation?
Our positioning is that of a niche bank, built over time on key areas of expertise that complement each other. Wealth management is, of course, the cornerstone. It is our core business. In recent years, we have broadened the scope to include wealth planning and consolidation services. In addition to wealth management, the Bank has developed specific areas of expertise, notably in real estate, precious metals and proprietary funds, enabling it to extend its offering while remaining consistent with its positioning.
In addition to this, we have a number of areas where we feel we have a strong identity. These include the support we offer to entrepreneurs, the services we provide to third-party managers, our commitment to the arts and philanthropy, and our regional coverage. We have offices in Neuchâtel, Geneva, Lausanne, Berne, Biel, Solothurn and Zurich. This is a dimension that perfectly illustrates our desire to establish close relationships with our clients.
Our fundamentals are clear. We give priority to independence, control of the value chain and speed of execution. We have a unique approach to each of our customers. We are currently focusing our investments on all these areas. By building on our strengths, we can differentiate ourselves even further and support our growth.
What will private banks have to know how to do tomorrow that they don't know how to do today?
The challenge is to make artificial intelligence and human intelligence work together. AI has already made it possible to speed up and refine the analysis of the huge volumes of data that we aggregate. It certainly frees up time and increases our skills, but it in no way replaces what we consider to be essential. The core of our business remains the ability to understand life trajectories, to support sensitive decisions and to be present at key moments such as the handover of a family. The private bank of the future will therefore be the one that knows how to use technology to enhance, rather than dilute, the quality of its advice and services.
How can private banks renew their image with the younger generation?
This is a very sensitive point, because the issue is not to break with traditional codes, but to reinterpret them. When it comes to credibility, solidity, rigour and discretion remain essential hallmarks for banks. But they are no longer enough. The new generations expect greater accessibility and fluidity in their interactions, and a form of proximity that also involves understanding their cultural, generational and even societal frames of reference.
These changes are forcing us to rethink customer relations, by diversifying channels, offering more targeted exchanges, providing more content, and opening up access to external networks and expertise. In other words, it's not so much a question of modernising the image as extending the scope of the relationship and giving it a new dimension.
Do neo-banks offer anything that private banks could learn from?
Customer expectations are fundamentally different. Private banking is based on a long-term, personalised, embodied relationship. On the other hand, neo-banks have set very high standards in terms of simplicity and digital accessibility. This is where we can learn from them, particularly through the development of more fluid e-banking offerings.
Where are your main growth opportunities today?
The Bank has grown exponentially over the last 30 years, and this dynamic remains at the heart of our strategy today. We intend to pursue it by combining organic growth and targeted acquisitions, in line with our areas of focus. We are actively working on this with Jean Berthoud, Chairman of the Board of Directors and the bank's main shareholder.
What standard practices do you want to avoid in the big banks?
Excessive standardisation, and in particular rigid client segmentation. At Bonhôte, we advocate a fundamentally different approach. Each client is treated as an individual, with a unique offering. Our short decision-making circuits and our integration of the value chain are decisive assets in maintaining this agility.
Conversely, what can you still learn from the big banks?
The big institutions have a head start in exploiting marketing and digital levers. For a bank on a human scale, the challenge is not to compete in terms of resources, but to adopt the best practices to strengthen its visibility, assert its positioning and better showcase its expertise, particularly on digital channels and social networks. It's a line of development that I think is all the more relevant because it enhances a model based on proximity and personalised relationships.
What is the role of a CEO in a private bank today?
It has grown considerably in recent years. It's no longer just a question of defining strategy or overseeing risks, but of providing a permanent link between a strategic vision and its operational implementation. You need to be able to orchestrate execution, ensure that decisions are actually implemented and align the organisation with customer expectations. In an environment that has become more complex, notably as a result of regulatory requirements that are much more onerous than they were twenty years ago, as well as more volatile markets linked to intense geopolitical and economic situations, the CEO must also play a key clarifying role. It is up to him or her to make the technical issues clear, to explain them and to bring people together. In this sense, the CEO is a strategist, an operator and an educator all rolled into one.