Private Banking’s Youth Crisis: Who Will Take the Helm?
Private banks are struggling more than ever to attract young talent. In her guest contribution for finews.first, Nadège Lesueur-Pène of UBP explains what banks must do to stay competitive in the war for tomorrow’s top performers.
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For the younger generation, private banking is no longer necessarily as attractive a business sector as it was for their predecessors. Nonetheless, these institutions’ recruitment needs remain high, and attracting young talent is becoming an increasingly important issue for them.
So, how can private banks attract and retain the next generation?
The Generations Survey 2025, published in February by the Berner Generationenhaus, shows that Swiss people aged between 18 and 25 view work differently from older generations. While financial security remains their core motivation – but nonetheless with a significant (at least 17-point) gap between them and previous generations – self-actualisation, personal development, the chance to make an impact, and having a job that has some meaning are cited as criteria that have much more weight in their eyes than in those of their predecessors.
New Minds, New Aspirations
Consequently, today’s – and indeed, tomorrow’s – young talent is looking for more than just a job; they want to work for companies that share their values and their aspirations, such as sustainability, ethics, and innovation. Private banks must therefore align their practices with these concerns in order to garner these young people’s interest.
The study also stresses that flexibility at work and work-life balance are not the privilege of Gen Z; that said, these factors play a crucial role for 26–35-year-olds, an age bracket during which the family becomes a key issue and talent is established.
Indeed, 48 percent of people in this generation deem these considerations to be particularly important, compared with just 26% for the next generation; they therefore become a key factor for those private banks that wish to retain young talent.
Consequently, it falls to them – private banks – to offer flexible working, remote working options, and flexible leave to respond to these needs.
This is all the more significant because 51 percent of young professionals in Switzerland place great store by professional growth and development opportunities within their companies, which demonstrates that they are disposed to look at their long-term position in the same organisation, contrary to what people tend to think.
Digital Presence And Targeted Communication
In order to capture the attention of these digital natives, who are generally very active on social media and dab hands at using digital platforms for their research – including for job hunts, private banks have to develop a strong, coherent online presence.
This makes it essential for the employer brand to spread values that are aligned with those of the talent that the business is looking to recruit, and to make good use of the communication channels that they use. Today, this is a critical precondition in order to be relevant and visible to them.
By building partnerships with universities and business schools, private banks can gain access to a fertile recruiting ground of qualified young people. This sort of collaboration can take many forms, such as regularly offering internships or lecture cycles.
Full Professional Potential
In setting up this sort of relationship with academic institutions, banks can make themselves known, identify potential talent, and create a link from the very first step of a young person’s professional journey. Once this young talent has been recruited, it is essential to help them integrate and develop professionally within the business. To this end, mentoring and coaching programmes are invaluable tools which offer recruits personalised support and which reinforce the business’s culture, as well as a sense of belonging and teamwork.
Such programmes also enable them to reach their full professional potential thanks to the support of a more experienced colleague. In order to attract a new generation of employees, private banks must also move their corporate culture forward by encouraging innovation, creativity, diversity, and inclusion.
By fostering a working environment that is open and welcoming, one that is conducive to innovation and taking calculated risks, a bank will attract the attention of dynamic, proactive young talent who want to contribute to its development and who will be able to realise their potential there.
Sensitivity to Non-Material Aspects
Although salary is not the prime consideration of Gen Z, it remains a factor that gains importance with age. By offering a competitive pay package when recruiting, banks can position themselves as attractive employers who are able to retain staff over the long term.
The same applies to social benefits, such as health insurance, benefits in kind, or quality of life programmes at work. By investing in their employees’ well-being, banks create a positive environment and show that they care about them, which is vital for people who are particularly sensitive to the less material aspects of work and working conditions.
Strategic Action is Required
In the final analysis, even though Switzerland topped INSEAD’s Global Talent Competitiveness Index 2023 for the tenth year in a row, attracting and retaining young talent is a major issue for the country’s private banks.
It is therefore essential that they adopt a strategic and holistic approach, one which includes the understanding and integration of young people’s expectations, using the right recruitment channels, rolling out professional training & development programmes, creating suitable working environments and putting in place competitive remuneration and benefits packages.
This is how private banks will be able to ensure their longevity and growth in a highly competitive market.
Nadège Lesueur-Pène is Head of Wealth Management Developing Markets & Europe, at Union Bancaire Privée (UBP)
