Julius Baer has a differentiating business model focused on wealthy clients, underpinned by an engagement-led sustainability strategy.
To serve its clients better, Julius Baer has upgraded its service model and delivery, and introduced new touchpoints and solutions reshaping the way operations are conducted.
Financial institutions are constantly re-evaluating their strategies to include what works best for their customers and business. Striving to keep empathy and agility at the core of its operations, banks are becoming more transparent with clients, thus driving their retention and ensuring business longevity.
When Swiss wealth management bank Julius Baer presented its updated strategy for 2023-2025, the bank’s CEO Philipp Rickenbacher, commented: “We are initiating a new phase of profitable growth, building on the transformation we pursued successfully since 2020. Our client-centric business model and our dedicated focus on high and ultra-high net worth clients put us in a strong position to shape our future.”
TRANSFORMING OPERATIONS
With a structural efficiency programme in place, Julius Baer was able to reduce costs by CHF200m ($227m) by the end of 2021, demonstrating that the bank’s financial strength is a prerequisite for the successful implementation of its business strategies.
The greatest impact on Julius Baer’s operations has come from the introduction of value-based pricing for its services. Over the past three years, the bank has repriced more than 20,000 accounts, working closely with clients to ensure mutually beneficial outcomes.
This significantly bolstered the bank’s revenue generation capability for future sustainability.
To strengthen its operations, Julius Baer has restructured its legal entity portfolio and made necessary upgrades to the business wherever required. Working towards further enhancing its value proposition, the bank has reviewed the requirements of high- and ultra-high-net-worth clients and designed solutions to match their requirements. Over the course of the past financial year, Julius Baer reassessed its market strategies, ensuring the largest investments were allotted to areas with the highest strategic and profit potential, building on local critical mass. This has set the foundation for Julius Baer’s next growth cycle, where the bank aims to scale at a global and local level, while maintaining a well-diversified international footprint.
To serve its clients better, the bank has upgraded its service model and delivery, and introduced new touchpoints and solutions reshaping the way operations are conducted.
SUSTAINABLE PRACTICES
With sustainability being a key part of its client value proposition, Julius Baer has been taking proactive measures to achieve its net-zero goals by the end of 2030 as part of its climate strategy. Encouraging positive impact and sustainable practices, the bank aims to broaden responsible and sustainable investment offerings, integrate environmental, social and governance (ESG) principles into its risk management framework, and roll out ESG client reporting, including climate metrics, globally.
By accelerating investments in technology and people, Julius Baer has upgraded its digital channels to include new e-banking, content distribution and digital client onboarding solutions. Working towards its strategy of being the most digital bank for relationship managers, the bank has invested in digital tools including an advisory suite and mandate solution designer, crucial in helping scale the business in a flexible, yet regulatory-compliant way.
Julius Baer has been recognised as the winner of the Outstanding Global Private Bank Global trophy at the PBI Global Wealth Awards 2023.