Traditional private banking as practiced in Switzerland may not have a future, as clients prefer cash holdings to investments, Raiffeisen Schweiz Chief Executive Officer Pierin Vincenz was quoted as saying by Schweizer Bank magazine.
An ageing population, low interest rates and volatile securities are all reasons for this trend, Vincenz said. Cash is of little interest to private banks, which don’t normally provide loans and would have to reinvest the money, he said, according to the report.
To contact the reporter on this story: Paul Verschuur in Zurich at email@example.com
To contact the editor responsible for this story: Mariajose Vera at firstname.lastname@example.org