For a private investor, identifying the institutions most likely to meet their needs — and understanding what they would concretely propose in terms of strategy, fees and service — is rarely possible without a structured approach. The RFP (Request for Proposal), long used by pension funds, insurers and foundations to select their banks and asset managers, allows precisely this. This method is now accessible to private investors with approximately CHF 1 million of assets to invest or consolidate with a private bank in Switzerland.
Why negotiating alone with your bank often limits the outcome
In a sector where confidentiality is central and comparable information is rarely accessible, the investor does not always have the elements necessary to objectively evaluate fees, service quality, the proposed strategy and the performance achieved relative to the risk taken.
The client generally has neither a complete view of the market and its participants, nor sufficiently precise points of comparison. An apparent reduction in fees may thus leave significant costs embedded in selected funds, foreign exchange operations or credit terms. Equally, the performance of a mandate may appear satisfactory whilst in fact resulting from a higher level of risk than comparable solutions.
It then becomes difficult to identify the most appropriate institutions and to negotiate from a genuinely balanced position.
What an RFP genuinely allows you to evaluate and negotiate
The wealth strategy, target allocation, risk level and liquidity needs are defined at the outset. The RFP then allows institutions to be compared on their ability to implement this framework efficiently, transparently and sustainably.
1. Define the mandate before approaching banks
An effective RFP begins with a precise analysis of the need. What are your wealth objectives? What level of risk are you prepared to accept? Do you need a discretionary mandate, investment advisory, a credit facility or consolidated reporting?
This step allows the strategic allocation, cross-border constraints and expected level of personalisation to be defined. Without this framework, each institution will respond with its standard solution — and the proposals will be impossible to compare.
2. Select the genuinely relevant institutions
It is neither necessary nor useful to consult the entire market. A targeted pre-selection identifies the institutions suited to the mandate: private bank soundness in Switzerland, relationship size, investment capabilities, credit capacity, international expertise and experience with comparable situations.
The objective is to select three to five banks or asset managers capable of responding seriously to the defined need.
3. Put banks in competition on a level playing field
The pre-selected institutions receive the same specification document: the client's objectives, constraints and expectations, without unnecessarily disclosing sensitive information.
Each proposal must address the same questions: what strategy is recommended? What will the complete fee structure be? Which products will be used? What reporting will be provided? Which teams will actually manage the relationship?
This method avoids misleading comparisons between proposals that do not cover the same scope.
4. Compare proposals beyond reputation or price
Responses are analysed according to a grid of criteria consistent with your priorities: strategy suitability, fee transparency, open architecture, credit terms, team stability and reporting quality.
This analysis reduces the risk of selecting a bank purely on the basis of a marketing presentation or an existing relationship.
5. Negotiate the final terms at your side
Once the best proposals have been identified, the independent adviser analyses the differences with you and supports you in selecting the retained partner or partners. The final decision is always taken with the client, on the basis of their wealth priorities, preferences and relationship with the teams met.
The adviser then negotiates, at your side and on your behalf, the key parameters of the relationship: fees, foreign exchange terms, fund costs, credit terms, access to teams, reporting quality and portfolio transfer conditions.
Negotiations are more effective when the bank knows that its proposal is being compared against credible alternatives and that the decision criteria are clearly established.
Can your current bank be included in the RFP?
Yes. Putting an existing bank in competition does not necessarily mean wishing to leave it. This approach allows you to verify that current terms remain competitive, to formalise service commitments or to adapt the relationship to a new wealth situation.
In some cases, the current bank remains the best partner. In others, the RFP reveals that another structure better meets the client's needs. To go further: evaluate your current private bank before launching an RFP, or compare a private bank against an independent asset manager.