Falcon Private Bank will surrender its banking license and cease its business activities. Negotiations on the sale of clients to a Swiss private bank are at an advanced stage, according to a press release dated 11 May 2020.
We’ve seen it time and time again: Merrill Lynch sold some of its clients to Julius Baer, Vontobel had already bought Notenstein’s Eastern European clients before taking over the entire bank. Whenever a bank changes its direction, it wants to get rid of certain clients that no longer fit. And since clients have a value, they are sold for as much as possible. This applies all the more when a bank ceases its business activities.
Can Customers be Sold?
It sounds a bit like human trafficking when entire customer bases are sold. But it is quite common in the banking business: banks hire relationship managers in the expectation that they will bring as many of their existing customers as possible with them to their new employer. The customers concerned then have to decide whether they want to remain loyal to their previous advisor or their previous bank, and there is a fierce battle for them.
Are bank customers passive beings who can be sold and moved without resistance? The perhaps surprising answer is: in the majority of cases, yes. Because such deals only work if customers keep quiet. If customers took the change as an opportunity to look for a new provider, a customer base would not be for sale. The more sticky the customers, the better for both buyer and seller (whose compensation generally depends on how many customers go along with the change). Both will therefore seek to “sell” the attractiveness of the acquiring bank to the customer.
Customers Have the Freedom of Choice
What can affected customers do? Whatever they wish! The takeover of a customer base by a bank does not obligate the customers concerned in any way. They are free to look for a new provider at any time. Customers of Falcon Private Bank can now ask themselves what their needs actually are and where these are best met. The easiest way to do this is with FinGuide:
- Fill in an online questionnaire
- View/download an initial (anonymous) evaluation online
- Discuss the evaluation with FinGuide
- Select potential providers and client advisors
- Hold non-binding consultations with the potential providers
- Make a decision and open the new banking relationship
All of this happens at the speed customers want, neutrally, independently and free of charge for investable assets of CHF 500,000 or more.
Interested? Then start your search for suitable asset management on our homepage.
We are also happy to recommend our article, which shows you the criteria you can use to identify the best private bank for you.
