Moreover, it is an argument that is just as valid with regard to most other European banks, which, until quite recently, were still being inhibited by legal constraints from investing on an international scale. This approach lies at the very heart of Swiss private bankers' attitude. In an age when standardization and uniformity have become the norm and when banks are queuing up to merge with each other to create gargantuan entities, this different approach might suggest that Swiss private bankers are swimming against the tide or, worse, they are old-fashioned and out of touch with reality. As for me, I think quite simply that the race toward building ever-larger banks and institutions is being run more to please shareholders and this may work against clients' interests. I sincerely believe that our way of doing things is more in keeping with the natural evolution of investors' behavior and attitudes.
Every investor usually passes through three distinct phases.
During each one, the investor's needs are quite different and met by different types of banking establishments. The first stage is saving money when investors, because either they do not have the time or they lack the experience, put their money into bank deposit accounts or CDs. During this initial phase, the size and brand recognition of a bank is all-important. The investor is looking for security and liquidity so will focus primarily on the big household names. Once investors feel more confident and have gained a little more experience, they will look around for ways to boost their returns by investing in instruments that require more extensive financial knowledge or are longer-term investments.