Markus Werner: «New Opportunities – Ambitious Goals»

Markus Werner, independent asset managers are facing a number of challenges. What are the biggest issues faced by the industry?

Increasing regulation, rising costs, growing customer demands and greater client price sensitivity are just some of the many factors that have recently been making the work of asset managers anything but easy. As a result, their margins – as well as ours – are under pressure both in Switzerland and Liechtenstein.

Is consolidation in the sector set to continue?

Yes, in my view, the consolidation is only now slowly beginning. Market participants will have to start thinking about their future positioning in light of the ever-growing administrative burden, increasingly complex client needs and the rising compliance requirements.

How can a bank support its external asset managers in this situation?

The responsibility of a good custodian bank is to save their intermediaries as much work as possible, as well as to make the mutual interfaces efficient and effective. At the end of the day, intermediaries should be able to focus fully on their core business: advising and supporting clients.

What does that mean exactly?

In concrete terms, banks can provide valuable support for financial intermediaries in a number of areas: dat rocessing, administration, training, reporting and of course also with outstanding products. A good custodian bank should have information that is relevant for its intermediaries ready at all times – be it in terms of current market developments or regulatory requirements – and be able to show them how these factors impact their work.

«I think that we offer our intermediaries a superior, efficient and solutions-oriented service»

Secondly, the bank, particularly in the area of regulation, should take over part of the tasks and free up resources for the intermediaries. In the digital age, transaction processing as to be as straightforward, flexible and as efficient as possible using appropriate and secure online channels. And of course, the product offering must also cover the needs of the intermediaries.

And LGT is able to offer this to its asset managers?

Potential for improvement exists always and everywhere. That is why we are in constant dialogue with our partners. But I think that we offer our intermediaries a superior, efficient and solutions-oriented service. Our ambition is to be a reliable, long-term partner with a comprehensive and attractive range of products and services.

Can you tell us more specifically about how you support your intermediary clients when it comes to regulatory matters such as MiFID II?

Over the last few years we have given numerous courses and presentations featuring internal and external experts. We also regularly organize webinars and have introduced a new online portal for our financial intermediaries. With just a few clicks of a mouse, our partners have access to all information, events, a range of podcasts and important forms.

«We want to further grow our share of the EAM market»

Also, there are attractive outsourcing possibilities aimed at significantly reducing the burden on our intermediaries, e.g. for transaction and loss threshold reporting, as well as access to product documentation. We are hard at work on developing additional offerings in this area.

In recent months you have reorganized the EAM business in Switzerland and Liechtenstein. Why was this step necessary?

We have ambitious goals and want to further grow our share of the EAM market. With our longstanding employees, international experience and a broad offering, we were already an attractive partner for our intermediaries before taking that step.

«The intermediary business is a substantial part of LGT Private Banking»

With a joint organization in Liechtenstein and Switzerland, a uniform presence and even broader offering, we are now ideally positioned for the future. We have a unique opportunity to combine the strengths of the two organizations and now serve our financial intermediaries from a single source, regardless of the location.

How important is the intermediary business for LGT?

The intermediary business is an important and also substantial part of LGT Private Banking. We have successfully developed our partnerships with EAMs, multi-family offices, trustees, lawyers and fund management companies over 30 years from our locations in Vaduz, Zurich, Geneva and Lugano. And our growth targets for the coming years continue to be ambitious.

How do you plan for this growth to take place?

We are one of the last family-managed and independent private banks with strong international expertise in the intermediary business. The combination of these factors and our attractive product and services offering means we are very well positioned to on the one hand attract further financial intermediaries, and on the other hand, also attract talented and highly-qualified new employees.

What is your assessment of the future of the Swiss and Liechtenstein intermediary business in general?

I am of the firm conviction that independent financial intermediaries have a successful future in store that will bring a lot of opportunities. In order to take advantage of these, they must, however, stay abreast of the changes in the market.

«The regulatory requirements mean that adjustments to business models should be considered»

Increasing client demands mean that further specialization is necessary, and the regulatory requirements mean that adjustments to business models should be considered. With their flexibility, independence, individuality and expertise, as well as their very close relationships with clients, intermediaries have unbeatable USPs that will continue to provide significant opportunities in the future.

Markus Werner is head of the intermediaries business for LGT in Switzerland and Liechtenstein. After completing his banking apprenticeship, he began his career in the lending business at Swiss Bank Corporation and in private banking at a Liechtenstein bank. He began working for LGT in the intermediary business in 1996. He enjoyed the professional collaboration in the B2B business – professionals with and for professionals – from the outset. The many exciting changes as well as the heterogeneity of the intermediary business fascinate the 45-year-old. In his view, the intermediary business offers many opportunities for the development, changing and optimization of processes, services and products.