Competition in wealth management is increasing significantly
ZWEI Wealth has been campaigning for more transparency and competition in asset management for five years. An evaluation of the results of the ZWEI Wealth tender platform provides insights into the state of competition in Swiss wealth management. The analysis suggests that more and more private investors are taking advantage of the opportunities and competition has increased significantly again in the past year. These are good signs for Swiss wealth management.
To date, ZWEI Wealth has analyzed over 350 asset managers and banks. More than 200 of these providers have actively participated in bidding processes for customers. An evaluation of the activities of tenders from 2019 allows interesting conclusions to be drawn.
More competition: more investors use tenders, more providers submit offers
Competition among providers of wealth management services has increased significantly in 2019. This can be determined from both quantitative and qualitative elements. The sharp increase (+ 64%) in the number of tenders is striking. This shows that more and more private investors are willing to question their existing banks and asset managers and are open to new and better solutions. The number of banks and asset managers taking part in tenders also increased (+ 25%) and the average number of offers.
Better offers: more specialized providers, improved offers, lower prices
In addition to the sheer number, the quality of the offers has also risen significantly. The number of offers with a rating of at least good has increased significantly. On the one hand, this is due to the fact that new, good providers are taking part in the tendering platform. On the other hand, it is also due to the fact that the existing providers have qualitatively improved their offers. In addition to the qualitative improvements in the offers (see graphs), the improved fee structure also stands out. The prices offered have improved by an average of 18% this year compared to 2018.
Change needs dynamism to be relevant. This can be seen more and more clearly in wealth management.
CEO ZWEI Wealth
Swiss wealth management benefits
Who benefits from the increased competition? In the first place, investors win. They receive a wide selection of offers and can compare transparently side by side and benefit from better conditions. Secondly, the good wealth managers and Switzerland benefit as a location for the world's leading wealth management solutions. Experience confirms this clearly: investors' confidence in providers is increasing and, last but not least, international customers are regaining confidence in Swiss solutions.
We thank all participating banks and asset managers for the cooperative and constructive cooperation.
Further details on the results can be found at info(at)zwei-we.ch.