Despite recent scandals and reputation issues, Switzerland is set to see more wealth generating among its HNWIs, a research from PBI’s sister company WealthInsight has revealed.
In 2014, the Switzerland HNWIs held $1.4trn, increasing by 36.7% between 2010 and 2014.
According to the consultancy company, HNWI wealth is predicted to grow by a further 39.5% to reach $2.0trn by 2019.
Switzerland is also forecast to have more billionaires (76) than Italy and Spain combined (50) by 2019.
Switzerland has still 100.7% more HNWIs (309,474) than Singapore (154,189), which is the financial centre set to possibly become the world’s main private banking hub by 2020, reported WealthIsnight.
Existing and upcoming struggles
Though the Swiss economy has performed well during the financial crisis, HNWI figures performed poorly resulting in the amount of HNWIs falling by 0.8% over the period 2010-2014 to 309,474, said WealthInsight.
"Europe has struggled to cope after the financial crisis and continues to do so until this day, many banks are looking to further increase their development in countries throughout Europe," said Carlisle.
Carlisle also mentioned the recent HSBC tax avoidance and evasion issues, as well as FATCA rulings to have had a strong impact on the banking hub’s reputation.
He further commented: "Over the near future this could have a fundamental effect on the private banking market in Switzerland and may give the edge to Singapore."
"This is evident by the future projection, with significant investment being moved out of Switzerland, increasing from $754.5bn in 2014 to $1.2trn in 2019," added Carlisle.