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https://doi.org/10.21256/zhaw-2526| Publication type: | Working paper – expertise – study |
| Title: | Wealth management in Switzerland – Edition 1 |
| Authors: | Künzle, Christoph Hefti, Jonas |
| et. al: | No |
| DOI: | 10.21256/zhaw-2526 |
| Extent: | VI, 142 |
| Issue Date: | 22-Sep-2023 |
| Publisher / Ed. Institution: | ZHAW Zürcher Hochschule für Angewandte Wissenschaften |
| Publisher / Ed. Institution: | Winterthur |
| Language: | English |
| Subjects: | Wealth management; Benchmarking; KPI; Industry study; Swiss banking; Financial service |
| Subject (DDC): | 332.1: Banks |
| Abstract: | The main objective of this study is to provide increased transparency to Switzerland's wealth management industry for various stakeholders. Wealth management can be defined as an advisory service to sophisticated banking clients provided by different institutions. The scope of this study has been limited to licensed Swiss bank with at least 25% of their operating income devoted to wealth management (inclusion ratio). All data used are publicly available (2021 annual reports, Zefix commercial register), whereby Switzerland's 245 banks (June 2022) serve as a starting point. Through various exclusions, we arrive at our data sample of 69 Swiss wealth management banks that jointly define Switzerland's wealth management market. In terms of their headquarter locations, Swiss wealth management banks are concentrated around the country's financial hubs of Geneva (27 HQs) and Zurich (25 HQs), followed by Lugano, Basel, and other locations. To assess and benchmark Swiss wealth management banks' performance, this study defines twelve KPIs along four categories: • Profitability: Return on Total Assets, Return on Equity, Return on AUM • Efficiency: Cost-Income Ratio, AUM / FTE, Personnel Expense / FTE • Capital Adequacy: CET1-Ratio, Leverage Ratio, Liquidity Coverage Ratio • Growth: AUM Growth, NNM / AUM, NNM / FTE The ZHAW WM Performance Score combines the above mentioned KPIs into one grading, whereby each KPI (100 points for best performance, 0 points for worst performance) equally contributes to the total score, enabling stakeholders to define their own "winners" depending on category preference. Lastly, this study has reviewed the Boards of Directors of Swiss wealth management banks and has found that many seem to (only) have five or six Board members, indicating that Swiss wealth management banks prefer a lean Board structure. Women are still underrepresented, with almost 40% of Swiss wealth management banks' Boards of Directors having no women at all (with a cumulative 80% of Swiss wealth management banks having a female Board representation below 30%). To analyze a potential correlation between the composition of a Board of Directors and a wealth management bank's ZHAW WM Performance Score, this study runs simple regressions and has found no correlation between the percentage of female Board of Directors members and any category score, nor the total score (with similar results regarding the total number of Board of Directors members). |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/28759 |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute of Wealth & Asset Management (IWA) |
| Appears in collections: | Publikationen School of Management and Law |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 2023_Kuenzle-Hefti_Swiss-Wealth-Management-Study.pdf | 3.63 MB | Adobe PDF |  View/Open |
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Künzle, C., & Hefti, J. (2023). Wealth management in Switzerland – Edition 1. ZHAW Zürcher Hochschule für Angewandte Wissenschaften. https://doi.org/10.21256/zhaw-2526
Künzle, C. and Hefti, J. (2023) Wealth management in Switzerland – Edition 1. Winterthur: ZHAW Zürcher Hochschule für Angewandte Wissenschaften. Available at: https://doi.org/10.21256/zhaw-2526.
C. Künzle and J. Hefti, “Wealth management in Switzerland – Edition 1,” ZHAW Zürcher Hochschule für Angewandte Wissenschaften, Winterthur, Sep. 2023. doi: 10.21256/zhaw-2526.
KÜNZLE, Christoph und Jonas HEFTI, 2023. Wealth management in Switzerland – Edition 1. Winterthur: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Künzle, Christoph, and Jonas Hefti. 2023. “Wealth Management in Switzerland – Edition 1.” Winterthur: ZHAW Zürcher Hochschule für Angewandte Wissenschaften. https://doi.org/10.21256/zhaw-2526.
Künzle, Christoph, and Jonas Hefti. Wealth Management in Switzerland – Edition 1. ZHAW Zürcher Hochschule für Angewandte Wissenschaften, 22 Sept. 2023, https://doi.org/10.21256/zhaw-2526.
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