UBS and Credit Suisse are changing how they work with wealthy clients
Two global asset management firms are making some changes to how they deal with rich clients, including reducing their human interactions.
UBS and Credit Suisse are both adjusting their models to capitalize on the growing band of investors who are rich, but not rich enough for their highest service levels.
Bloomberg reports that for UBS that means a scaled-back service for clients in Switzerland who have between $500,000 and $5 million in assets. They will receive fewer human advisor interactions in favour of greater use of technology.
This will see some clients moved down from the service level offered to high-net-worth individuals (HNWIs) with up to $100 million in investable assets.
The firm’s internal research has found similarities in behaviour between those with assets of $2m-$5m and those in the lower segment rather than HNWIs.
Meanwhile, Credit Suisse will launch a Private Banking International subdivision focusing on clients with assets of around $20 million or less, often retired business professionals or through inheritance.
Again this ‘rich but not the richest’ offering will use technology in place of some human interactions. The unit will also include faster account opening and digital money management tools.
Credit Suisse also has divisions focused on Ultra and entrepreneurial high-net-worth clients – and strategic clients, mostly billionaires.
The money managers are making these moves to cut costs amid tougher competition.
