Private Bankers

What are the Swiss private bankers' roots?

 
Through the course of history names of personalities and families have sprung up, illustrious precursors of today's private bankers. Among them was Cosimo de' Medici who, in the 15th century during the Council of Basel, set up one of the first banking houses.
 
With the Reformation and the emergence of Calvinism in the 16th century persecuted protestants came flocking from all over Europe but principally from France and Italy, and found refuge in Geneva. Among them were bankers who lost no time in deploying their skills.
 
In the 18th century, the Genevese private banker Jacques Necker rose to fame, having been appointed head of the royal treasury by King Louis XVI of France. Even today, many of the private bankers can retrace the origins of their establishments to the 18th century.
 
At that time, the private bankers worked as general bankers, catering to their clients' credit needs. However, with the industrial revolution in the second half of the 19th century, they were no longer able to keep pace with the increasing demand for loans. This situation gave birth, on the private bankers' initiative, to the first credit banks incorporated as limited companies.
 
As these banking establishments expanded, the number of private bankers declined. This decrease in numbers was concurrent with a marked increase in their size at the end of the 20th century. During this period many Swiss private bankers developed their activities in international financial centres.
 
 

What is the difference between "private banker", "private bank" and "private banking"?

 
A private banker is a businessman in the private banking sector, using his own capital to conduct his business, conscious of his unlimited liability and his power to take independent decisions.
 
In Switzerland, the term "private banker" is protected by a collective mark registered with the Federal Institute for Intellectual Property in the name of the Swiss Private Bankers Association. The use of this mark is reserved for members of the association as well as other banking establishments incorporated as sole-ownership companies or as partnerships or limited partnerships.
 
The term "private bank" is more general and can also apply to banks that are incorporated as limited companies, in particular when they are controlled by a group of reference shareholders and are active in the private asset management sector. Some banks have even included "private bank" in their name.
 
Finally, "private banking" does not refer to an establishment but to a banking activity serving private individuals who want to have their assets managed professionally. It is a group of services that goes beyond portfolio management, offering highly personalized services with the accent on efficiency, expertise, personal contact and quality of service.