Switzerland assessed as the fifth-best wealth management market by Avaloq index
Switzerland remains one of the world’s most attractive wealth management markets, ranking fifth in Avaloq’s first Wealth Management Index. However, alongside its traditional strengths, Switzerland lags behind in terms of digitalization and new approaches to client engagement.
With a score of 66 points, Switzerland ranks in 5th place in the Wealth Management Indexfrom Avaloq. The top four places are occupied by Singapore (86), the USA (83), the United Arab Emirates (72) and Hong Kong (67). In total, the Zurich-based company, which is a specialist in the area of software and IT services for financial institutions, compared 15 international markets against each other using more than 60 indicators in five categories for this first edition of its new ranking.
The overall results show that Switzerland’s strengths as a wealth management hub are focused on three of the five categories analyzed: macroeconomic conditions, financial market maturity and in particular the regulatory environment. Alongside Singapore, Hong Kong, Luxembourg and the United Arab Emirates, Switzerland ranks among the markets with the clearest and most stable regulatory frameworks for the wealth management business.
However, a comparison between Switzerland and top-rated Singapore also highlights the areas in which Switzerland “faces challenges despite its strong starting position”, as Avaloq explains in a statement. Accordingly, the results differ significantly, particularly in relation to the criterion of “technology and acceptance of digital offerings”, which measures the extent to which a market’s digital framework supports the efficient delivery of modern wealth management services.
The gap between system security and the day-to-day use of digital tools among the population is also considerable. Avaloq describes the conditions for the digital scaling of wealth management offerings as “unfavorable”, while significant differences also emerge in relation to demographic factors such as investable assets, household spending and planning habits, interest in financial topics and digital interaction with financial content.
As Christian Haux, Managing Director Switzerland and Liechtenstein at Avaloq, underlines, this comparison shows “how important digital skills, new forms of client engagement and access to the next generation of wealth are becoming. For Swiss providers, it will therefore be vital to bring their established strengths into the digital future of wealth management”.
Source: swisstrade
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