EFG’s ‘Renaissance banker’ prepares for cultural transition

In EFG International’s Park House office in London’s Mayfair, chief executive Giorgio Pradelli reflects on the resilience of private banking amid growing disruption. He likens the industry to the luxury sector. “Our clients are the same ones who have helped luxury brands thrive over the past decades,” he notes.

For the 22-year EFG veteran and former Deutsche Bank executive, trust is everything. “It’s all about advice — a trust relationship versus one conducted mainly through digital channels,” he says. Technology, he emphasises, is “only a complement to the relationship between client and adviser”.

Switzerland, he says, offers the “strongest ecosystem” for private banking. Of the country’s 83 private banks, a select club of eight manage more than SFr100bn ($126bn) in assets and operate internationally.

“For decades, even centuries, Swiss private banks have specialised in serving international clients. We consider ourselves part of an export industry because most of our clients come from abroad.”

This outward-facing model, he argues, allows Swiss banks to offer a degree of geopolitical diversification. “Offshore wealth tends to grow faster than wealth itself when tensions rise,” he notes.

Demand is rising from clients in countries such as China, India, South Korea, Russia, Brazil and the UK. “Sometimes it’s the assets, sometimes the family. Ultimately, it’s about diversifying across asset classes, institutions and financial centres.”

With SFr162bn in client assets as of end-June 2025 — rising to SFr173bn including recent acquisitions — EFG describes itself as a “pure play” private bank. Though its SFr4.8bn market cap and SFr38bn balance sheet leaves it mid-sized by global standards, in Switzerland’s fragmented private banking sector, EFG ranks in the top tier.

Mr Pradelli refers to EFG as a “global private banking boutique”, operating in more than 40 locations worldwide with 3,000 staff. Offices range from large hubs — 1,200 employees in Switzerland and 400 in London — to small outposts in Brazil and beyond. “Client proximity is very important. We need to be close to clients and entrepreneurs wherever they are.”

Families, he says, are often “split across jurisdictions”, needing to “operate seamlessly” across borders, able to access nine major booking hubs, including Singapore, Hong Kong, Switzerland, London, Luxembourg and Miami.

Partner search

EFG’s current strategy emerged after its 2016 acquisition of BSI, a Swiss bank sold following regulatory sanctions linked to the 1MDB scandal. The “transformational” deal nearly doubled the group’s size and extended its reach in Asia and Latin America.

Since then, focus has shifted to organic growth, with an openness to “selective” acquisitions. Recent deals, including Cité Gestion and Investment Services Group, have strengthened presence in Switzerland and Australasia, building on the 2019 acquisition of Shaw and Partners in Australia.

“Both of the firms we acquired this year had owners who chose us because our business models aligned,” says Mr Pradelli, commenting on the continued search for partners. “Cultural fit is key.”

Financial discipline matters too. EFG targets a minimum 10 per cent return on any acquisition within three years, with efforts focused on markets where it already operates. While continental Europe remains the priority, Mr Pradelli sees strong potential to expand in Miami, London and across Asia, which he describes as “the fastest-growing region in our business”.

“If opportunities arise to accelerate our growth through acquisitions, we will pursue them,” he says, with a strong focus on “building our brand” internationally. This growth strategy is, however, hampered by soaring compliance costs, especially around anti-money laundering.

“We went public in 2005 with less than SFr40bn under management and seven compliance officers globally,” says Mr Pradelli. Today the firm is four times larger but employs 200 in the compliance department.

Entrepreneurial advisers

Despite industry consolidation, Mr Pradelli insists quality counts more than scale. “It’s like comparing Ferrari to Stellantis,” he ventures. Even though he would welcome an extra SFr100bn in assets, “growth and returns matter more than size” for EFG, which moulds its culture around entrepreneurial advisers.

“Our most valuable asset is the bond between client and adviser,” he stresses. Unlike banks where books of business are inherited, EFG encourages advisers to build their own. “We distinguish between farmers and hunters. We need hunters.”

Rather than rotating staff to foster brand loyalty, EFG does the opposite.  “It’s a personal relationship, like with a doctor or lawyer. If clients want the same adviser for life, that’s what we offer.”

Each client relationship officer (CRO) is supported by a team of specialists, with dedicated desks in Switzerland and Hong Kong offering family offices direct access to markets.

Perhaps the biggest challenge to the existing model will come from the intergenerational wealth transfer, admits Mr Pradelli, with 60 per cent of wealth now held by those over 60, much of it expected to change hands in coming years.

To prepare for this seismic shift, EFG is building a cohort of “next gen” CROs to better align with the heirs’ expectations. “Younger clients often don’t bank with their parents’ adviser,” observes Mr Pradelli. “We need a new generation of bankers,” augmented by “seamless digital tools.”

Veteran CROs mentor new recruits, as part of a long-term investment in talent. In 2023 alone, EFG hired more than 140 bankers, 30 per cent of them coming from Credit Suisse, following its collapse.

“Our sources are very diversified,” he says. “Even exceptional hires usually bring over only half their book. What matters most is their ability to build.”

While private banking has lost some of its allure to the tech sector, interest remains high, with EFG receiving 8,000 applications for 25 graduate roles last year. It partners with initiatives at Cambridge, ETH Zurich, St Gallen and Bocconi universities. Recruits are offered early experience in trading and asset management, as opposed to the specialisation encouraged by rivals. “Maybe I’m still romantic,” says a smiling Mr Pradelli, “but I believe in the Renaissance banker.”

Lonely at the top

Having previously served as both CFO and deputy CEO, Mr Pradelli says those roles were crucial in learning how to set priorities, allocate capital and manage performance. But the top job, he concedes, is a “totally different ball game”. As CEO, he says, “the responsibility is with you. You’re essentially alone.”

His “golden rule” is that earnings should grow at twice the pace of costs — essential for Swiss-based firms, where a strong franc and weaker dollar can erode revenue. With half of EFG’s assets in dollars, maintaining efficiency and defending margins as rates fall is critical.

EFG’s 2022–25 roadmap, aiming at “empowering entrepreneurial minds to create value for today and the future” targets “sustainable, profitable growth” through personalised service. Core values — accountability, hands-on leadership, partnership and a solutions-driven mindset — were developed with employee input and reflect what Mr Pradelli describes as the bank’s “entrepreneurial DNA”.

Incentives, he believes, must go beyond pay. “People go the extra mile if they believe in something. Purpose makes the difference.”

A stable ownership structure enables longer-term thinking. EFG’s controlling shareholder —the Latsis Greek shipping dynasty — is closely aligned with management, while its public listing imposes market discipline. “Our stock price is another form of incentive,” he says.

Not all commentators are convinced by the strategy. Ray Soudah, founder of of M&A advisory firm MilleniumAssociates, argues that the firm’s hybrid ownership — with the majority held by the Latsis family and BTG Pactual — limits its free float and depresses valuation. He calls it a “legacy structure, not intentional design”.

Still, he acknowledges that with the share price recently rebounding, EFG offers a rare blend: the structure and transparency of a public company, with the stability and long-term outlook of a family-owned bank.

Hiring CROs can, however, remain costly, believes Mr Soudah, as they operate as “individual profit centres” — a model that suits ambitious bankers but can test allegiance. “The most successful can generate a fortune, but their loyalty often lies more with themselves than the bank.” That independence has earned the firm the nickname “EFG hotel”.

Sally Tennant, partner at Acorn Capital Advisers, calls EFG “an upstart” by Swiss standards. Founded in 1995 — “yesterday in private banking terms” — it appeals to “younger-thinking clients” and entrepreneurs. But its “eat-what-you-kill” model can foster a siloed mentality, though strong management can help offset that.”

Clients, she adds, “want a bank that embraces new investment approaches and emerging asset classes. This is an area where EFG is well positioned.”