Armin Eiche - “Germany is the third-largest wealth management market in the world”

Could we look back over your career?

I began my career with military service in the German Armed Forces, then studied business administration in Germany. After graduating, I joined Deutsche Bank and spent 23 years in the wealth management division.

… then your path crossed Pictet’s.

To this day, I vividly remember Marc Pictet’s words when I went to Geneva to meet with the Managing Partners: "We have two objectives for the German market, steady growth and no reputational risk.” Here is a bank that places emphasis on understanding clients’ needs rather than selling products. I was soon convinced that Pictet was the right choice for me – an institution that would give me both the freedom and resources to develop a business in the German market.

When I joined Pictet in 2011, I took over a small team of 11 people, focusing mostly on operations, which I then repositioned as a fully-fledged business development platform. Today PWM Germany has 34 staff members managing close to EUR 10 billion in assets.

This growth has also been driven by a strategy of forging closer relationships with clients in two of Germany’s most prosperous Länder, Bavaria (Munich) and Baden-Württemberg (Stuttgart).

Absolutely. The opening of our Munich office ten years ago, followed by Stuttgart two years later, were milestones in PWM’s growth in Germany. We now have 10 people in Munich, building a business from a team that was partially recruited from Deutsche. Stuttgart was established by relocating five colleagues previously based in Frankfurt and has grown to eight bankers and CROs. This compares with 10 in Frankfurt.

We are now focusing more on North Rhine-Westphalia, Germany’s largest and most populous state and a major industrial hub, and its capital, Düsseldorf. Our aim is not necessarily to open a new office there, as we cover this market from Frankfurt, which is close enough to provide a local service to our Rhineland clients.

To what extent has the transfer of the European headquarters to Frankfurt been helpful to PWM Germany?

This move signals our long-term commitment to Germany, unlike many of our competitors that have exited the market in recent years. Some have left and some have since come back, but re-entering the market has proven difficult.

In contrast, we have consistently demonstrated our commitment to the German market through steady growth and low staff turnover, thereby building trust over time. The relocation of our EU headquarters is an excellent example of this commitment. From a very small player, we have grown organically, and PWM Germany is now one of the largest markets in Europe. Overall, Germany is the third-largest wealth management market in the world for UHNWIs in investable assets per person, after mainland China and the United States.

We should not underestimate the importance of Swissness and the associated virtues of reliability, solidity and stability. These are very much appreciated by clients who are active in different jurisdictions, especially Germans.

Turning to more personal questions... Is there a book which has particularly inspired you?

"The salt path", which tells the true story of a married couple. After the husband became very ill, they lost their house and practically everything else. Left homeless, they decided to walk the Southeast Way in the UK. As this is a particularly beautiful area, they realised how beautiful the world is and began to look at it with different eyes.

What struck me most about this book was this man who was told by his doctors that he had only a few months to live and who, deprived of everything but with an extraordinary determination, regained his strength and overcame his illness thanks to the support of his wife and walking. Not so much because it was a bestseller in the UK and Europe, but because it was one of the best books I have ever read. Perhaps because it opened my eyes to the fact that there is more to life than just doing your job well.

A person you are proud of and perhaps close to?

My brother Markus studied engineering and opera at the same time and has since become one of the most sought-after baritones in the world, appearing at the world’s leading opera houses, from Bayreuth to the Metropolitan in New York, from Tokyo to London. I visit him whenever he is nearby, especially in Bayreuth, inviting clients to dinner with him and other famous opera artists. The clients would really enjoy it, especially as it was something you cannot buy.