Switzerland has long been known as the top destination for international private clients seeking wealth management services.
A recent study by Deloitte suggests that Switzerland's position in the global wealth management market is facing increasing competition. While Switzerland still leads in terms of foreign assets, the gap between Switzerland and competitors like the United Kingdom and the United States is narrowing.
The study reveals that Switzerland's share of global assets under management has decreased from 24% to 21% in the past four years. This decline is not solely due to Switzerland's performance but also reflects the changing dynamics of the international market. The total global assets under management have increased by 2.9% to $10.1 trillion in 2023, with the UK and the US making significant gains.
Several factors contribute to this shifting landscape, including the growth of wealth in Asia, the emergence of Hong Kong and Singapore as strong players, and the advancements made by the UK and the US in attracting international clients. The decline of Credit Suisse has also had a significant impact on Switzerland's financial sector, leading to a loss of cash deposits and raising concerns about the stability of the Swiss banking industry.
Regulatory challenges are another obstacle that Switzerland must address, with calls for a more balanced approach that promotes financial stability and growth. Swiss asset managers are encouraged to invest in digital transformation and operational efficiency to stay competitive. Switzerland must adapt to new trends and client expectations to maintain its leadership position in the evolving wealth management landscape.
The findings from Deloitte's study highlight the need for proactive measures to reinforce Switzerland's status as the premier destination for international wealth management.