“Finanz und Wirtschaft” interviews a representative of the Swiss economy in his favorite café. Today, it was Matthias Hunn’s turn, the founder of FinGuide. The interview focuses on Swiss private banking, FinGuide’s offerings, and the motivation behind founding the company.
Read the full interview with Matthias Hunn on the Finanz und Wirtschaft website in German. For our English-speaking clients, here’s a translation of the interview.
—–
By Valentin Ade
“I always had respect for entrepreneurship, but I first had a corporate career,” laughs Matthias Hunn, taking a sip of his coffee in the café of the Coworking Lounge near Zurich’s Enge train station. For 35 years, the 56-year-old worked in the finance sector. Most recently, he was part of the extended management board at Migros Bank, responsible for marketing, products, and pricing. Three years ago, during a reorganization, the Zurich native took the leap into self-employment.
The business idea for his start-up, FinGuide, emerged quickly. Just as in medicine, the distribution of information in banking between advisors (doctors) and clients (patients) is heavily skewed. “For years, I’ve been bothered by the fact that sufficient knowledge in private banking is simply not available to clients.” The market isn’t designed for customers to find the right provider; typically, advisors still acquire their clients’ assets themselves. “Bankers are often members of golfing or sailing clubs and approach potential candidates for a client relationship after a few drinks.” The lack of information is also linked to many providers offering services that are not as good as they present themselves and being more expensive than they are willing to disclose.
A true market, where “the bad lose their clients and the good gain them,” does not exist. The industry hides behind a “wall of opacity.” Hunn has taken on the task of breaking down this wall and helping affluent clients find the right provider for themselves. He continuously scrutinizes private banks and asset managers in the financial center. Many are completely open with him—partly because passing his rigorous evaluation acts as a seal of approval and partly because Hunn remains silent about providers that don’t pass his process. It would be an interesting and long list since “most have not passed the evaluation.”
Currently, five banks and seven independent asset managers are listed as partners on his website. They are there because they have met three criteria: “They have generated net added value for their clients over several years and multiple strategies—after costs. Secondly, they exemplify fairness and transparency. “Private banking is still marked by conflicts of interest,” says Hunn. Many advisors have sales goals and incentive models that benefit them when they sell clients their bank’s products—regardless of whether they are the best or the cheapest. The provider profits from both management or advisory fees and product costs. Hunn categorically excludes this type of provider. Thirdly, those who make it onto his platform must possess a relevant unique selling proposition, which around 80% of providers today simply do not have.
Fairly, Hunn acknowledges that the vast majority of clients with a standard strategy are already well served. For the others, who bring half a million francs in investable assets, Hunn assesses their needs via a structured questionnaire (see finguide.ch). “Then there’s an evaluation with their top four providers, which I discuss in detail with them.” In the evaluation discussion, four are narrowed down to two, at which point the potential client is invited for an introductory meeting.
So far, Hunn has connected a double-digit number of clients. His start-up is expecting a six-figure revenue this year. “I’m still in the early stages,” says Hunn, offering a service that has not yet existed in the Swiss market. Notably, Hunn’s service is free for clients, as he is compensated by the provider the client ultimately chooses. This raises concerns about conflicts of interest, similar to insurance brokers who may prefer the insurer that pays them the highest commission. “That doesn’t happen at FinGuide,” Hunn emphasizes. Every provider pays the same amount. He regularly has this verified by an auditing company, which is publicly accessible on the website. “After all, I don’t want to perpetuate the old conflicts of interest with my new service.”
—–
Valentin Ade is the head of the opinion section at “Finanz und Wirtschaft.” He is responsible for planning and implementing opinion pieces, commentaries, and guest contributions, as well as national and international political reporting.
—–
Would you like to optimize your wealth management? You can find more information about our free service on our homepage.
