Interview with Alexandre Berger, Market Head Intermediaries Western Switzerland & Americas, Bank Julius Baer

What developments have been changing the market for financial intermediaries?

“Financial intermediaries today have to cater to an increasingly complex set of client needs, comply with growing regulation and local jurisdictions, and embrace technology – but in ways that complement their expertise. For example, the new FINMA regulatory obligations in Switzerland and the need for increased investment in the organisation, process optimisation, and technology are increasing production costs and putting more pressure on margins. Amid this complexity, keeping an agile mind and a focus on scale is key to maintaining the required knowledge and experience to be successful.”

What role do networking and partnerships play in mastering this environment?

“This changing landscape makes it crucial for financial intermediaries to create a real ecosystem in Switzerland and abroad in the markets they cover, together with other financial institutions, legal professionals, technology providers, and industry experts. Strong networks, cooperations, and strategic partnerships, especially between financial intermediaries and custody banks, enable market participants to fully exploit their strengths and capabilities and open new avenues for business growth and client acquisition. In Switzerland, some associations of external asset managers are particularly dynamic and help create real bonds between the various players.”  

What opportunities does technology present for financial intermediaries?

“Financial intermediaries are known for their strong personal relationships with clients, but to leverage this advantage, they also, paradoxically, have to embrace technology. Most financial intermediaries use off-the-shelf, third-party wealth management applications comprising various functions such as CRM, KYC, portfolio management, client reporting, and fee management. Those wishing to stay competitive have to ensure that their systems have seamless integration capabilities and can easily be incorporated with solutions offered by other firms in the ecosystem, such as client portals and risk engines. The adoption of a solid and user-friendly CRM system can also be a key competitive advantage for those financial intermediaries who aim to stay on top of the game.”

What key elements can help financial intermediaries grow?

“One of the main differentiators for financial intermediaries is that they can offer more customisable support across asset classes and maintain closer relationships with clients, which enables a greater understanding of their clients’ objectives. The closer they can stay to their clients, the more engagement and trust will grow among their clients and the brighter their future will be. We have recently sought to increase our own client proximity, for example, by recruiting market developers to tackle the Geneva market and the two main international markets we cover from there: Latin America and the Middle East. We have also added new hires to our new Lausanne hub who have well-established networks in the region, a new team in Dubai DIFC, and a market development hub in Montevideo where most of our financial intermediaries in LatAm are concentrated. Maintaining such local proximity to each market is a valuable growth enabler – and helps us understand our clients that much better.”

Looking ahead, what do the next couple of years hold for financial intermediaries?

“Financial intermediaries are currently at a crossroads – the next few years are likely to be a crucial time for them, given the challenging operating environment. In addition to a push for greater efficiency, many financial intermediaries will have to make structural changes to reduce costs. By 2030, we expect the sector to have evolved, with a group of elite financial intermediaries differentiating themselves through the excellence of their personal service, supported by technology to foster efficiency. The good news is that financial intermediaries have a natural advantage as small, entrepreneurial organisations. They can be innovative and change their organisations in intelligent ways far more quickly than larger organisations.”