- "In Switzerland there is a family called: Lombard? Odyer? Dariyer? Hench's private bank.

There is a saying circulating in the banking world, "If you haven't heard the name of this bank, the biggest reason is that you are not rich enough"! ”

Sergei flashed his big blue eyes and smiled, and then said to me:

- "The bank has 20 branches around the world in 15 countries.

Swiss private banks have been known for their security and reliability for centuries.

Bank secrecy is one of the most important competitive advantages of Swiss private banks.

In 1934, Switzerland promulgated the Federal Banking Act, Article 47 of which clearly stipulates that "any bank employee must strictly abide by the principle of confidentiality, keep confidential his dealings with customers and the status of customers' property, and the confidentiality agreement shall be valid for life and shall not be invalidated by the resignation, retirement or dismissal of a bank employee"

In banks, no photographs are allowed, no names are given, and some even have no signboards, only the names of the operators.

From the moment you step into the bank, everything that happens with the bank is the customer's own secret, even if you don't open an account at the end.

Similarly, even after the account is cancelled, personal information remains a secret, and as long as it is not in violation of the law, it will rot in the bank.

Currently, one third of the world's private assets are pooled in Swiss private banks.

The efficiency and strict confidentiality of the Swiss banking sector have also made Zurich a major hub for offshore banking in the world.

The famous 007 said frankly that the only thing he can trust is the Swiss bank! ”

Sergei shook his head with emotion.

- "There are so many banks in the world, why do the rich people prefer Swiss banks?" "I'm still confused.

Sergey looked at me, smiled, and continued:

- "Here, we would like to try to analyze a type of private bank similar to the "blue-blooded aristocracy".

Well, it's a good representation of the deep understanding of "customer obsession" in traditional Swiss private banking

These private banks are usually small and independent, and many are family businesses that have been passed down from generation to generation. Hehehe...... Linna, their banks don't look as big as you might think, but their names aren't as well known, but the huge wealth under management is just as jaw-dropping, and they've been around for hundreds of years, so we'll call them private banks. ”

- "It's mysterious! I said

- "Yes! Take, for example, Rahn &Bodmer, a small Swiss private bank with a history of nearly 270 years. From its foundation in 1750 to the present day, it has evolved from a company engaged in the silk trade to a private bank with 12 billion Swiss francs under management and 200 million Swiss francs of its own funds. Its partners have been passed down to the third generation, and some of the partners have entered the fourth generation of the family.

For the private bankers in the "blue-blooded aristocracy", there are many services that cannot be seen by the outside world and cannot be reflected in specific words in the "service process", but they are the best performance of the "customer first" service, and at the same time, these "invisible" services that retain customers are also the embodiment of the quality of private bankers. ”

- "It's a covert operation, but is it all legal?" I asked

Sergey added a little wine to my glass and said:

- "Switzerland is known as a "tax haven". However, it does allow too much black money to flow there. For this reason, the Swiss government and banking industry are also under great pressure from European and American countries.

Not only at the national level, but also in the United States and the European Union are putting pressure on Swiss banks operating globally.

In 2009, UBS agreed to disclose the identities and account information of 4,450 customers deemed to have violated U.S. law. The bank feared that it could lose its license to operate a bank in the United States if it did not meet U.S. requirements.

In terms of professional competence, Swiss banks also face challenges. The challenge comes directly from the rate of inflation. ”

Sergey paused for a moment, looked at me and continued:

- "You said you don't understand why Swiss banks can't stay open, and that's really the problem that these traditional private banks are facing." I think André understands their plight better, which is why he merged his firm and bank to expand into new financial businesses. ”

- "Will there be any problems with these banks?" Is it political? I asked.

- "Yes, but that's definitely not the main thing. Lina, you know, before the Industrial Revolution, the world was in an agrarian society, and the inflation rate was almost zero.

Before the 30s of the 20th century, countries around the world gradually entered an industrial society, and the inflation rate began to rise, but it was still very low, about 0.3%.

After the economic crisis of the 30s of the 20th century, Keynesianism began to dominate the economic policies of various countries, and moderate inflation was considered to be conducive to economic growth, and the inflation rate rose to 3%.

At a rate of 3% inflation, after 25 years, assets will depreciate by 53%; After 50 years, assets will depreciate by 78%. For long-term family wealth, it is equivalent to half of the value after one generation, and another half after two generations. ”

- "Wow! I exclaimed.

- "The increase in the inflation rate has increased the demand for the yield of customers. Swiss private banks, while highly competent, are more likely to manage their assets in a conservative and prudent manner, rather than being able to achieve high yields. Moreover, according to the principle of risk-return equivalence, a conservative and prudent approach will almost certainly not be able to obtain a high rate of return. ”

- "Now I understand why those banks merged with investment banks. Andre was taking advantage of such an opportunity. I said

Sergey looked at me and smiled.

- "Sergey, the Swiss private bank you are talking about is from the "Blue Blood Aristocrat", and now there are not so many aristocrats, where do they have so many customers? I asked.

- "Yes, the wealth management business is built on the basis of economic development, and the development of the regional economy has a decisive impact on the development of the wealth management business in the region.

A number of long-established Swiss private banks have also begun to set up branches in these emerging offshore wealth management regions.

However, as the objective environment changes, it has become increasingly difficult for Switzerland to continue to dominate the offshore wealth management market.

Countries and regions such as Singapore, Hong Kong and the United States have begun to vigorously develop offshore wealth management business.

Among them, Singapore and Hong Kong are located in Asia, and the United States is close to Latin America, and Asia and Latin America are regions with rapid economic growth in recent decades, which makes Singapore, Hong Kong and the United States occupy geographical advantages. ”

- "It turns out that the competition is so fierce, and it is strange that the bank of the Rie family will cooperate with him." I said.

- "The Rie family's bank? Sergey asked

- "Yes, Andrei said that it is a very powerful Japanese company. I said

- "They're bringing customers to Asia, right?" Sergey asked.

- "I think maybe so! However, it is interesting to note that Andrei said that their company was sanctioned by the United States and had to be diverted to Switzerland. I said.

A meaningful smile appeared again on Sergei's lips. I didn't speak while sipping red wine.

- "What are you laughing at?" I asked.

- "Nothing. Sergey laughed.

- "Nothing you laugh at?" ”

- "I can't laugh yet?" ”

- "Your smile is weird! I said.

- "Hahaha......" Sergei laughed.