Switzerland’s lead in international wealth management narrows, study finds

Switzerland close to number one for international asset management Keystone-SDA

Switzerland continues to be the top choice for managing the assets of international private clients. However, a Deloitte study reveals that its lead over the UK and the US has narrowed considerably.

The significant outflows triggered by the Credit Suisse crisis have played a role in this shift. According to the “Deloitte International Wealth Management Centre Ranking” study released on Wednesday, international clients’ assets totalling $2.174 trillion (CHF 1.885 trillion) were booked in Switzerland in 2023.

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This accounted for about 21% of assets under cross-border management globally. However, four years ago, the proportion was still at 24%, according to Deloitte.

The study found that the international wealth management centres in the United Kingdom (UK) ($2.166 trillion) and the United States (US) ($2.109 trillion) held only slightly fewer assets. Hong Kong ($1.004 trillion) and Singapore ($730 billion) trailed further behind.

Massive withdrawals of funds due to the Credit Suisse crisis

Without the Credit Suisse collapse and the subsequent outflows, Switzerland’s lead would be significantly larger, according to the Deloitte study. The figures show that the Swiss bank experienced an outflow of client assets totalling $183 billion between mid-2022 and mid-2023. The situation only stabilised in the third quarter of 2023 with the UBS-Credit Suisse merger.

Switzerland remains the preferred wealth management centre, particularly for clients from Europe and the Middle East, according to Deloitte. However, the collapse of Credit Suisse has disrupted the stability of the Swiss banking market. Asset inflows from these regions have yet to fully recover.

The study’s authors note that Switzerland can continue to leverage its strengths in key areas such as infrastructure, property rights, and data protection. As a result, it retains its top spot for competitiveness in the Deloitte study.

+ Hong Kong ‘to become leading wealth centre’

However, the authors of the study warn that the fallout from the Credit Suisse crisis, along with tax and regulatory changes, could undermine Switzerland’s position.

Local banking more significant than international banking

The study reports that cross-border assets under management worldwide reached $10.1 trillion last year, marking a 2.9% increase. However, the overall significance of international asset management has declined: its share of “global financial assets” was 3.7%, down from 5.3% a decade ago.

+ How private banking took root in Switzerland

Conversely, the study indicates that “local banking” is becoming more significant than “international banking”. Deloitte concludes that global asset managers are likely to place even greater strategic emphasis on local business in the future.

Translated from German by DeepL/sp

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