In an increasingly interconnected world, Swiss wealth managers face the complex challenge of navigating international taxation while meeting the evolving needs of their global clients. Ultra-high-net-worth (UHNWI) and high-net-worth (HNWI) individuals are not only seeking secure investment solutions but are also demanding greater tax efficiency and personalised services.

This demand presents a unique opportunity for Swiss wealth managers to differentiate themselves and deliver enhanced value. "The idea is to work in a fiscally transparent world with adapted and efficient tools" says Romain Faraut, Swiss Market Director at Croesus.

The technology solution needed is far simpler than it seems. "The goal is not to give tax advice, but to identify products that would have a negative tax impact based on the client's tax residence," adds Nabil Hatimy, Director and Head of Client Delivery and Partnerships at Indigita.

Romain Faraut, a WealthTech expert and Swiss market lead at Croesus, and Nabil Hatimy, Director and Head of Client Delivery and Partnerships at Indigita, recently shared their perspective on the topic. This webinar in French was co-hosted with The Wealth Mosaic. Additional thoughts on the topic are below.

"From the client's perspective, there are two factors that diminish their wealth: bank charges and taxes," said Faraut. He emphasised the significant impact of tax inefficiencies, estimating that between 1 and 3 billion Swiss francs are overpaid each year by clients because their tax situation is not integrated into portfolio management decisions.

The cost of tax inefficiencies
Traditional portfolio management models, which often rely on generic approaches regardless of a client's tax domicile, are no longer sufficient in today's tax-transparent environment. Failing to address individual tax circumstances can lead to:

• Suboptimal returns: Unnecessary tax burdens can significantly erode client wealth.

• Strained client relationships: Clients may feel underserved if their tax situation is not adequately considered.

Reputational damage: Financial institutions risk losing credibility if they fail to provide tax-efficient solutions.

Technology as a solution
Croesus, in partnership with Indigita, offers a powerful solution to this challenge. 

"The goal is not to give tax advice, but to identify products that would have a negative tax impact based on the client's tax residence," said Nabil Hatimy, Director and Head of Client Delivery and Partnerships at Indigita.

By leveraging Indigita's comprehensive tax data and API, Croesus enables wealth managers to:

• Identify tax-inefficient investments: The solution analyses portfolios and flags potential tax liabilities based on the client's tax residency.

• Develop tailored strategies: Wealth professionals can create personalised investment strategies that minimise tax burdens while adhering to client risk profiles and investment objectives.

Automate portfolio adjustments: The solution automatically adjusts client portfolios for tax efficiency, considering factors like share classes, withholding taxes, and regional tax variations.

Empowering wealth managers, enhancing client value
Beyond its powerful tax-efficient features, the platform streamlines many other aspects of portfolio management. It empowers banks to:

• Boost efficiency
  Automate time-consuming tasks such as portfolio rebalancing, compliance monitoring, and reporting. This frees up bankers and portfolio managers to focus on client relationships and strategic decision-making.

• Enhance collaboration
  Improve teamwork and communication through centralised data and shared workflows. This fosters a collaborative environment where wealth management professionals can seamlessly work together to serve clients.

• Gain deeper insights
  Access powerful reporting tools to gain a comprehensive understanding of portfolio performance, risk exposures, and tax implications.

• Cost control
  Reduce operational costs associated with manual processes and legacy systems. Croesus’ cloud-based platform offers a cost-effective solution that scales with business needs.

Embrace the future of international wealth management
By embracing these technological advancements, Swiss wealth managers can not only optimise client portfolios and enhance service offerings but also reinforce their position as leaders in the global wealth management landscape.

"Technology allows us to ensure clients optimised management of their assets on a tax level" concludes Faraut.

Watch it again
To watch a replay of the webinar in French, click the image below.

Be sure to catch our latest perspective on the topic with our upcoming webinar in English on the same topic on March 26th. You can register here.

About Croesus
Croesus provides innovative, high-performance, and secure wealth management solutions that include portfolio management systems, portfolio rebalancing tools, and application programming interfaces.

Croesus’s solutions empower wealth management professionals to improve their productivity, enhance their client relationships, make informed decisions, and maximise the management of their financial assets. Croesus’s mission is to provide a superior experience to its clients, users, and partners.

Since its creation in 1987, Croesus has a proven track record of accuracy, robustness, and durability and is committed to maintaining the long-standing trust of the most demanding financial institutions. Croesus’s clients are private banks, wealth management divisions of large commercial banks, credit unions, family offices, wealth and asset management firms.

Find out more about Croesus here.

About Indigita
Founded in 2016, Indigita helps banks and asset managers conduct business in a compliant way to minimise cross-border risks – so they can fully focus on delivering excellent service to their clients.

Indigita offers a comprehensive portfolio of digital solutions, including digital applications, APIs and e-Learnings, designed for seamless cross-border compliance. Our solutions are based on the expertise of BRP Bizzozero & Partners SA, giving our clients access to industry leading regulatory guidance in over 190 jurisdictions.

Find out more about Indigita here.

play Webinar