Thinking aloud on personal values

My own family values have always been driven by clear principles. They’re based on empathy, integrity, and honesty. These are the values with which I grew up. And they translate into my professional life as a clientcentric approach, that respects the values of the families I work with. It’s personal.

A generation ago, the classic situation would have seen a small network of advisors working in a family’s interests: the family lawyer, the family doctor, and the family financier. But the picture for wealth management has become much more international, and a private banker today needs to have – and communicate clearly – an understanding of legal systems, accountancy, and psychology, within the context of the client’s individual needs.

To be or become a trusted family advisor is to take on a privileged role. Private bankers are invited into the intricacies of family mechanics. We have to navigate complex situations. We are the custodians of the whole relationship between the client and the bank. For the relationship to work, the advisory function of the private banker has to be clearly defined. Clients’ initial understanding of banking is often product-centred. But when it comes to the salient sleep-well factor within families, private banking comes into its own. Opening discussions around legacy often opens eyes.

Being a private banker is not all about investments, and not all focused on products. Ultimately, products are difficult to sell if you don’t understand family values – that family’s values. As a private banker, you become a close member of the family circle. This relationship is the epitome of private banking. Once you know what the family needs, you can guide them to the products that have the best chance of leading to the outcome they’re looking for. But trying to sell products from the outset? It’s like trying to tailor a suit before taking measurements.

A strong client advisory relationship is like any good relationship. It’s built on a two-way flow of trust and mutual respect. This is where empathy comes in – these are the things that make us human. Only once the understanding is established can we begin to offer advice that is actually useful. You have to have the right relationship to get the right information. But they’re in the driving seat. When families feel we know them well enough, they begin asking us what we think. Then they will give us the keys and say, ‘Come in. Take a look around. Let’s talk.’

Of course, for all this, there is a transactional aspect to the bankerclient relationship. But rather than cheapening the bond, for me this adds accountability beyond that which you often find in organic personal relationships. This is where integrity matters. Sure, investment has to lead to a positive outcome. But there has to be a balance between money and trust. Transparency matters. Building trust can take years, but losing it happens in a flash. Advisors need to be clear on what’s offered – and stick to it.

Honesty is at the core. There’s no point trying to bluff a client. They’re human – they’ll spot a bluffer. They’re also often a lot smarter than we are – what we bring is specific knowledge and experience. It is honesty that leads to trust. And without trust, the family will not tell us what they lose sleep over – the fears that keep them up at night.

There’s a longstanding view at Pictet that our bankers should learn from families about their philosophies, and their family values. At the end of the day, more and more people want to leave something good behind them. It’s a basic principle of being human – doing good with what we have. The client-centric approach comes naturally when you’re encouraged to think this way. It’s in the fabric of our DNA.