Following Crypto Push, Can Julius Baer Tread New Ground in Private Banking?

Julius Baer is seen as one of the financial giants that aims to make an impact on the modern-day crypto scene. However, spotting investment opportunities and knowing where to draw the line is more challenging than ever. But we’re getting ahead of ourselves. Let’s dig deeper into the story of Julius Baer and how it is gradually transforming from a traditional pillar in private banking, into a company with a more trendy tone, focusing on digital disruption and tech innovation.

JB & Private Banking in 2022

Companies like Julius Baers are not forced to handle the typical problems in banking, simply because they cater to clients with a very specific financial profile. These clients are high-net-worth individuals, and their financial goals and needs are far more complex than a majority of retail consumers. Just to shed some light here, in the field of private banking, if you approach as a client, it’s most likely you’ll need to have $1 million at the very least in order to qualify.

The benefits of turning to a private bank, of course, is that a range of financial services and options are all available under one roof. Clients are privileged to a single point of contact for all financial matters and get a dedicated banker or manager, entrusted to handle all matters related to finances and investments.

The year 2022 proved to be a tough cookie even for private banks, especially given the current economic conditions, pandemic impact and ongoing inflation. With more difficulties looming, such as rises in interest rates, the search for financial stability, and secure growth is definitely on the radar for most investors and private banks.

There is an increasing number of investment opportunities despite the market’s seemingly volatile climate. Most players in private banking are looking to turn towards environment-conscious business moves and ethical investing, which usually denote green energy and renewable technologies. With green tech added to client’s portfolios, other trends are on the horizon. For instance, as of 2022, artificial intelligence (AI) continues to have a notable presence in tech, so it’s no surprise that there’s a steady increase in hiring for jobs related to Machine Learning.

Of course, cryptocurrencies are dictating market trends more than anything else. This created all-new potential for small businesses who want to expand their efforts on the digital plain, and that means venture capital firms, large banks and hedge funds are now shifting their gaze to neobanks, neobrokers, and, trading in crypto.

Can Julius Baer Tap into the Market of Neobrokers and Neobanks?

Julius Baer recently made announcements that it’s moving forward with a wide range of initiatives, which they have categorized as essential on their road to digital disruption. They intend to focus on markets including automation and robotics, cybersecurity, and e-commerce, etc.

As a prominent Swiss wealth manager, and indeed one of the oldest and largest banking services in Switzerland, Julius Baer is the latest financial giant to hop on the crypto bandwagon. This isn’t by mere coincidence either. Their initiative to test and implement crypto services for clients comes from the company’s goal to focus on business moves with “transformative potential.” Slow moving technology and lack of innovation in traditional banking, leaves room for growth in the market of fintech start-ups. As a result, digital payments and decentralized finance tech are now on map for investors more than ever.

It must also be said that Baer’s move to introduce crypto-based services stands in contrast to the strategy of its Zurich-based rival, UBS. In fact, wealth manager UBS expressed a pretty straightforward and clear opinion on the matter, saying they won’t be interested in advising clients on “speculative” assets. Meanwhile, Julius Baer has taken a stake in SEBA Crypto AG, which stands as one of the two fully-regulated crypto banks in Switzerland.

This was interpreted as a defining moment, as the 132-year-old Swiss bank now offers crypto services and has already introduced pilot programs on guidance, trading, and investments in cryptocurrencies for its high-net-worth clients.

Now, the question remains: how can financial institutions such as JB recognize other options at this point? The answer lies, as always, in data and market insights, which are not necessarily related just to financial information on companies. The latest data crunched by Osterus opens up a new window of opportunity when it comes to human capital assessment, workforce metrics both of which can potentially allow you to see what normally cannot be seen with existing data.

Following the Path of the Berlin-based Unicorn Neobroker

Neobrokers are a new addition to the current tech market. In a nutshell, neobrokers have become a much sought-after solution for people who want to trade “on the go” using any mobile devices. Trade Republic, the latest contender in that particular field, allows people to buy and sell shares, ETFs, derivatives and cryptocurrency and all of that via a mobile app (without commissions). The trendy, Berlin-based unicorn managed to raise $900 million in a Series C round of funding. This event catapulted Tech Republic’s total value to an amazing $5.3 billion., placing the company into the spotlight of modern-day business, and making it one of the biggest privately-held fintech businesses in the region.

Osterus software has the potential to look beyond the obvious facts, and to unveil deep insight that focuses on the workforce behind these uprising companies. For example, the latest workforce analytics shows that despite the company’s trendy ambitions, they still have a very particular set of hiring practices. For one thing, they prefer hiring people who have worked in reputable companies such as Amazon, KPMG, and PWC. Still, they also appear to need employees that have a background in neobanking — as the data below showcases, quite a solid percentage of Trade Republic’s workforce was previously employed at N26. Incidentally, don’t hesitate to check out one of our recent pieces on the neobanks and the digital banking market.

Silicon Valley Bank

Silicon Valley Bank (SVB) stands as one of the largest high-tech commercial banks in the United States. During the past several years, SVB funded over 30,000 start-up companies and a huge assortment of small businesses. Additionally, SVB has a pretty strong reputation at the moment for being one of the hottest companies to invest in. That’s right, according to a variety of sources, in terms of stock value Silicon Valley Bank is in the top 3, right alongside Bank of America (BAC), and Signature Bank (SBNY).

SVB can easily be another point of interest for JB. Drawing a parallel between the workforces of these banks, we have come to the conclusion that both companies hire from top financial institutions. An interesting parallel is that both Julius Baer and Silicon Valley Bank, prefer hiring from workforces of recognized, traditional banks as seen on the chart below:

As you can see these banks include Credit Suisse, Ubs, Deutsche Bank, Wells Fargo and others. You only need to look a little deeper to find that both banks actually often recruit from HSBC Holdings — the UK-based multinational bank (currently, the largest bank in Europe by total assets).

That’s only a small portion of what can be achieved with interesting data on employment history and hiring practices within companies. An additional benefit of utilizing Osterus is a close-range look at a variety of intricate data regarding education. In this particular case, an interesting similarity comes into the spotlight. When examining Education Degree Distribution we can easily discern that Silicon Valley Bank has 11% less employees with Master’s Degrees. Have a gander more closely below:

Spotting the Next Trend in the Digital Asset Market with Osterus

With traditional banks like Julius Baer making a push into crypto services territory, it may be difficult pinpointing the next investment opportunity. Gathering and crunching through big data using Osterus helps lift the fog on such matters.

The fintech market is the perfect place to test your next strategy utilizing Osterus to power your next investment strategy, in order to:

  • Explore new investment grounds on the start-up market.
  • Expand the playing field for private banking with additional data on human capital.
  • Make a greater impact in the digital asset space.

These benefits can pave the way towards better ROI, so if you’re interested in more sophisticated market intelligence, feel free to reach out to our team of data experts at Osterus or schedule a demo for our software straight away.

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