29 Oct Interview with Christian Reich, CEO, Kaiser Partner Privatbank, Liechtenstein
What factors have allowed for the growth of Liechtenstein’s significant financial services sector?
Liechtenstein’s financial sector benefits from being backed by the strength of the Swiss currency and its unique strategic position at the center of Europe, which provides market access to both the European Economic Area and Switzerland. The country has recently made significant strides in regulatory excellence, especially following the latest financial crisis and money laundering concerns. Through these reforms, Liechtenstein has established a stable, debt-free economy with high capitalization. We have grown a diverse financial services ecosystem from banking to asset management, insurance and fiduciary services. Our stability is also enhanced by our strong industrial sector, with global players like Hilti headquartered in Liechtenstein. Despite its reputation for being boring, this stability is now seen as an asset that allows the financial sector to focus on innovation responsibly. Liechtenstein’s openness to emerging fields such as crypto and artificial intelligence reflects its adaptability. As a small nation, Liechtenstein can swiftly implement new regulations, which makes the country an appealing environment for technological advancements.
What has driven Kaiser Partner Privatbank’s (KPP’s) substantial returns in 2024?
We experienced significant growth in 2024, with our net new assets increasing by 1.2 billion Swiss francs. Our progress may have seemed small at first, but it reflects our preparation over the past few years. We have focused on training our team and learning from our clients; this year’s results demonstrate the impact of our efforts. Aside from fluctuations in April and May, we saw consistent growth. Our steady development stems from our commitment to understanding our client’s needs through our job-to-be-done methodology. This approach allows us to identify what drives our clients and ensures we provide effective solutions.
We successfully integrated our fiduciary services in 2024, moving toward the Kaiser Partner Private Trust Bank model. This allows us to understand our clients more holistically through the provision of both fiduciary and private banking services. We refer to this approach as the Kaiser Partner Wealth Table, where clients, our bank and external asset managers from Kaiser Partner Financial Advisors and Kaiser Partner Wealth Advisors collaborate. Our goal is to provide integrated support to better understand our clients’ needs, address their issues and help them preserve and grow their wealth.
How has KPP’s digital leaning helped evolve its market presence?
We now offer a comprehensive service set for clients seeking digital assets and services, primarily catering to our existing clients who hold fiat currencies. We recently attracted major tech companies looking for a conservative and secure private bank to invest their fiat money from crypto. Our focus has shifted to developing new products and services for existing and new clients. A significant milestone is our engagement with some of the largest institutional clients in the sector, which has allowed us to be selective about our partnerships. While we want to maintain our reputation as a stable and conservative bank, we take pride in being chosen by top players in the industry that are drawn by our stability, US dollar access and presence in the European Economic Area.
How is KPP contributing to a more sustainable and eco-friendly future?
To understand Kaiser Partner’s position, we must go back to 2005 when the bank’s owner, along with Al Gore, initiated efforts to promote ecological investments. With nearly 20 years of tradition in this area, sustainability is woven into our daily operations and reflected in our every portfolio and report. It is challenging to discuss sustainability separately from our ethos; it is a fundamental part of banking. Given the current geopolitical landscape, we also focus on other pressing issues.
What are KPP’s main focuses in its current growth strategy?
Our top priority is fully developing the Kaiser Partner Private Trust by understanding our clients’ motives and serving them holistically. Our second priority is staying informed about global developments, particularly in artificial intelligence as it will significantly impact our business and the world. Our final priority is navigating the transition from a unipolar to a multipolar world and helping our clients maneuver these challenging geopolitical waters.