With products and transaction settlements becoming a commodity, providers of private banking services need to redefine their strategic positioning.Providers of private banking services act as information intermediaries. In the information age, their previous information advantage is eroding with important business areas such as products and transaction settlements becoming a commodity. Therefore, providers face the pressure to redefine their strategic positioning at the beginning of the 21st century.

Swiss private banking still has a highly fragmented market structure. As the sector is very important to Switzerland, the transformation potential of the leading-edge business models in the information age is being intensively discussed today. The strategic tool is the ‘Business Model’—a concept which consists of the analysis of the value chain, the core competencies and the network positioning. Overall, the industrialization of private banking will continue in the years to come. This will offer opportunities for countries with qualified personnel and an attractive salary level (e.g., for India and other countries in the region) to attract parts of the value chain of Swiss private banking providers.