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Swiss private banks are expanding their Asia-focused teams onshore in Switzerland, following a significant increase in referrals and inquiries from the region over the past two years. Asian family offices and ultra-wealthy individuals are increasingly moving their assets to Switzerland, seeking direct relationships and a secure haven for assets such as physical gold in vaults.
Clients are looking to have their investments legally booked and held in Switzerland, even if they reside and work elsewhere, according to bankers. Despite predictions of a decline in its status due to the erosion of bank secrecy and international pressure on offshore finance, Switzerland has maintained its position as the world’s leading haven. In 2024, the country had $2.74 trillion in assets under management, making it the top hub for offshore wealth.
While rival centers like Hong Kong, Singapore, and Dubai have experienced faster growth in recent years, Swiss private banks are targeting these Asian markets as sources of new clients. Many assets from Hong Kong and Singapore eventually flow back to Switzerland, with the number of deposits by residents of these regions increasing significantly in recent years.
The majority of clients still choose to book in Asia, but there is a growing interest in Switzerland, according to Omar Shakur, chief executive for Asia private clients at Lombard Odier. Political uncertainties in the region, such as the national security law in Hong Kong and geopolitical events like Russia’s invasion of Ukraine, have led Asian clients to diversify their assets across different jurisdictions.
Switzerland has emerged as the preferred booking center for Asian clients outside the region, with many allocating a portion of their assets to the country. The non-dom tax rules in London have reduced the UK’s appeal for Asian clients, further benefiting Switzerland as a destination for wealth management.
In response to the increasing demand, Swiss banks have expanded their Asia desks in Switzerland. Julius Baer, UBS, and LGT Private Banking have all ramped up hiring for their Asia-focused teams. UBS’s head of wealth management for Asia-Pacific Switzerland noted that some family offices from Hong Kong and Singapore now seek to establish both an Asia and European headquarters.
Despite Switzerland’s allure, there is a need to demystify the perception of a “Swiss account” and explain the practical implications for clients. While Switzerland may not be competitive in certain areas like equity trading due to stamp duty, it offers other strengths that appeal to Asian clients.
Overall, the trend of Asian clients shifting their assets to Switzerland underscores the country’s enduring appeal as a global financial hub. With Swiss private banks expanding their presence in Asia, the symbiotic relationship between the two regions is expected to continue growing in the years to come.
