The offices of Itaú Private Bank are bright, modern, almost homey – but surprisingly compact. Despite managing around $13 billion in assets, much of the operational work takes place elsewhere.

«We receive onboarding support from Brazil, and our back office is run from Portugal,­» CEO Stefan Jenni explains during a recent meeting with finews.com. “We know our clients better than most internationally operating Swiss banks – because we look after them locally, in some cases for decades.»

From the Very Beginning

The Swiss arm of Brazilian banking giant Itaú was born during a turbulent period in the global financial system: the global financial crisis over 15 years ago. «We began the project in 2008, and two years later we had our license,» recalls Jenni, who has been with the bank since day one. Since then, Itaú Private Bank Zurich has operated with a full banking license.

A Global Bank for Latin Americans

While many banks scaled back their offshore presence, Itaú took a long-term view and stepped up its efforts. «If we want to be the global bank for Latin American clients, then we need a presence in Switzerland – the world's largest offshore hub.»

Focused on Latin American Clients

From the outset, the goal was to build a standalone, profitable business. «We had a bank in Luxembourg at the time, and its assets were transferred to Switzerland – that helped us reach break-even quickly.»

The focus since founding has been on private banking – with a clearly defined target group. «Latin American clients often cannot diversify their portfolios meaningfully within their own countries,» Jenni explains. «Due to structural limitations in local financial markets – for example in Brazil – international diversification is particularly important for many clients.»

Head of Itaú Private Bank: Stefan Jenni. (Image: zVg)

Offshore Trend Intensifies

Unsurprisingly, the share of wealth held offshore by Latin American clients continues to rise. «25 years ago, it was about 10 percent. Today, it's 30 to 35 percent.»

Unlike many competitors, Itaú avoids aggressive expansion. «We only recruit selectively,» Jenni emphasizes. «We want the right people – for the long term.» In Switzerland, the client advisory and investment team numbers around 20. Much of client acquisition stems from the close collaboration with our parent company in Brazil, which allows us to cover the market more broadly.

2024: 700 Million Dollar in Net New Money

The model seems to be working: In 2023, Itaú recorded approximately 700 million dollar in net new money. «Given our size, that percentage growth is very solid,» Jenni notes.

A new strategy through 2030 aims to accelerate this growth. Jenni speaks of a «resegmentation» in Brazil, particularly among entrepreneurial clients, and a stronger focus on Latin Americans living abroad. «Many wealthy Brazilians are migrating to Portugal or the U.S. Our market share in these client groups still has room to grow.»

Expanding Through Partnerships

To broaden its offering, Itaú partners with firms such as KKR and Brown Advisory. «As a relatively small international bank, we can’t do everything ourselves.»

Unlike some Swiss banks active in Latin America, Itaú Private Bank has avoided compliance scandals. Asked why, Jenni says the bank places strong emphasis on governance and robust compliance structures that align with Swiss and international standards: «Since our Swiss unit was established in 2010, we’ve implemented modern processes and clear policies. We also have deep knowledge of our target market.»

Cautious with PEPs

The bank also adopts a cautious stance toward politically exposed persons (PEPs). «Our risk appetite when dealing with PEPs is deliberately conservative,» says Jenni. «We see our strict political neutrality as a clear strength in maintaining client relationships.»

Jenni comes across as calm, thoughtful, and friendly in conversation – far from the theatrical style common among some private bankers. Over the years, he has made Brazil his professional focus – despite having no personal ties to the country. «I started working on Brazil right after my apprenticeship at UBS – it just sort of happened,» he says with a smile.

«We Should Be Proud»

Even without a showroom, Jenni has clear views on Swiss private banking. «A third of global offshore wealth is booked in Switzerland. We should be proud of that – and communicate it actively.»

In geopolitically uncertain times, the traditional values of Swiss banking are more relevant than ever. Jenni wishes for a stronger international push from the official Swiss banking sector to emphasize these strengths.