Syz determined to prove small can be beautiful

The private bank has repositioned itself, claiming to offer a mix of Swiss stability and boutique agility.

The repositioning of family-owned Syz Bank heralds the start of a new developmental stage for Swiss boutique and mid-sized private banks, keen to differentiate themselves from big players.

Syz Group, which has $26bn in assets under management, unveiled its new corporate re-positioning strategy in October, strengthening its front office expansion with new hires in a campaign titled “Welcome to Syzerland”.

Although Syz Bank has struggled to expand and was hamstrung by major liquidity issues back in 2008, its innovative approach has generally allowed it to stand out from its competitors, in an industry often marked by cautious conservatism.

“As the Swiss banking landscape evolves and consolidates, Syz Bank remains committed to offering personalised service to every client,” says Philippe Turrian, the former head of client solutions and marketing and communications, who joins Nicolas Syz as co-head of wealth management.

“We therefore wanted to create a campaign that conveys this unique positioning to the public. That is why we designed a campaign that combines illustrations – a nod to the past campaigns of the Syz group and the family’s attachment to art – and a copy that allows us, with humour, to make the audience feel the distinctive elements of our positioning,” he adds.

The Syz family has been deeply passionate about art collecting since the 1980s. The Geneva bank offices have long been adorned with vibrant and occasionally eclectic pieces – a touch that resonates well with their entrepreneurial clientele.

Over the last year, the bank has been refocusing on its front office as part of a broader strategy to “enhance” client focus and “drive” growth.

According to the group, the appointment of Mr Turrian to the new role reflects a commitment to “continuously improving client centricity”, ensuring they remain “agile and responsive” to client needs.

The new campaign, claims the bank, underscores its unique positioning as a family-owned institution, offering clients alignment with shareholder interests. It also focuses on Swiss stability, paired with “boutique agility”, and access to interesting investment opportunities.

A competitive field

Some commentators see this shuffling of pieces in the Swiss banking jigsaw as a positive step forward in a field wary of consolidation.

“Over the last few years, consolidation has hit the private banking sector, and smaller banks must reinvent themselves if they don't want to disappear through mergers,” says Nicole Curti, president of the Alliance of Swiss Wealth Managers and managing partner of the Geneva-based Capital Y boutique investment house. At the same time, large independent asset managers have continued to grow, and some have now reached a size larger than certain private banks without being burdened by heavy cost structures. This can offer a natural alternative to the banking sector, with a much more personalised and less conflicted service, she believes.

“As a result, smaller private banks find themselves stuck between large private banks and big independent asset managers,” she warns.

“The announcements clearly indicate that they put a lot of investment into that launch. It's a show of confidence in the future, with new energetic management,” says Shelby du Pasquier, partner and head of banking and finance at law firm Lenz & Staehelin in Geneva.

But others believe there is not really any new direction to the industry. “These are common events,” says says Ray Soudah, founder of the MilleniumAssociates strategic consultancy in Zurich, but they don’t necessarily signify any major change in business model or industry direction.

“At the end of the day, all of these banks and wealth managers, whether they are licenced or not, all they want is more client assets,” he believes. “It’s all just noise to get more assets under management.”

These regular periodic cycles of marketing are generally focused on product, says Mr. Soudah. “It's really a question of whether clients, at the end of the day, really move their business because of these things."

A family affair

Founded by Eric Syz in 1996 and now involving the next generation, notably with Nicolas Syz at the helm of wealth management, the bank’s family-driven ethos gives it an edge in an industry dominated by large corporate structures.

Like a small number of competitors, including LGT, Syz invites clients to invest alongside the controlling family.?“Our family ownership and multi-generational management model deeply influence our approach to wealth management and client relationships,” says Mr Turrian. “By offering the opportunity to invest alongside us in innovative ventures, we align our interests with those of our clients.”

Commentators agree that the market definitely has room for family-owned private banks and wealth managers, co-existing with the large quoted players.

“I think the fact that this bank is controlled by a family, which has a long-term perspective, is an element in their favor,” says?Mr Pasquier of Lenz & Staehelin. Whether this will be successful and able to attract clients and increase funds will “depend on the performance” it will offer its clients. For a bank such as Syz, which defines itself according to the quality of investment management, returns are always the most crucial factor.

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