Zurich's Lienhardt & Partner is to the banking world what the micro brewery is for beer lovers: the institute's CEO Duri Prader tells finews.ch what makes his bank tick.

Mister Prader, Lienhardt & Partner is pretty special in the way it goes about its business. Which are your main rivals?

What makes us special is that we are not only active in banking, but also act as a real estate company. We have a broad knowledge in real estate investments and management. This differentiates us from typical private banks.

What are the main characteristics about your culture?

We're fast, flexible and unfussy.

Who isn't?

You're right, other banks will claim the same characteristics for themselves. But we've internalized these qualities and take full advantage of our short decision-making processes.

And what does this mean in reality?

We act as an alternative to the ever bigger and impersonal banks. It's just like in the beer business. A few global brands are dominating the market and all products taste the same. Which is why more and more consumers are taking to smaller breweries, with local roots, which act independently and retain their individuality. Applied to banking, this corresponds exactly with our profile and culture.

What makes you special?

Our investment philosophy is one that only very few private banks still adhere to, because it is seen as antiquated and not very lucrative. We have three buzzwords to describe our philosophy: direct, diversified, disciplined. Direct means that we invest in the original, i.e. in equities, bonds and real estate and not in products. Diversified means that we invest globally, but with a focus on Switzerland. And disciplined says that we are making no experiments and don't follow the fashion trends.

«We don't have to change our business model in the age of the automatic exchange of information.»

This is all pretty unspectacular, but successful in the long run. We want to be convincing through clarity and simplicity.

Do you have liabilities, like other banks?

Our institute has had one branch and market for almost 150 years. We have never been active in international private banking. About 95 percent of our customers are domiciled in Switzerland. We don't have to change our business model in the age of the automatic exchange of information. We can focus on taking care of our customers without being crushed by liabilities.

The German feminist Alice Schwarzer has had an account with untaxed money at your institute.

Some media outlets have indeed claimed as much. But you know, your question will remain unanswered. For legal reasons, we can't deny nor confirm any customer relationships. I can't say more than that.

«In our business, the private banker remains the main point of contact.»

Other banks have launched so-called robo-advisers. An option for you too?

Robo-advisers are helping in the automation of procedures, in simulating scenarios and visualizations. But in our business, the private banker remains the main point of contact. The questions for him are as individual as his clients are and reach across a lot of topics. Machines can help, but can't replace a well-versed adviser.

The private banker is an adviser and trustee of his client and not a salesperson. At a great many banks, this has been changed because the pressure to sell has become so big. There you often will have conflicts of interest between an objective advice and the distribution of products.

Lienhardt & Partner started developing the business with pensions three years ago. Can you tell us why?

Pensions are a growth market. The demographics, increasing health costs and low interest rates are fueling this trend. Provision gaps need to be financed with additional savings.That's why we extended our traditional business model.

«Equity markets have had a false start this year.»

The business is fully automized and standardized and has several thousand customers.

You've had a strong year in 2015. How's your start been this year?

Equity markets have had a false start this year. But we believe that we will be able to grow even in 2016 with our local focus and that we will keep the risks within reach.

For a long time, you've been active at Vontobel in leading positions. In joining a much smaller bank, didn't you take a step back?

I always like my job as head of private banking Switzerland at Vontobel. But you can't compare it with my job at Lienhardt & Partner. Here, I'm the king of the village, at Vontobel I was one of many. Lienhardt & Partner is not just a bank, it is also a real estate firm. As CEO, I carry the responsibility for the entire business. That was a very attractive proposition for me.

And the CEO has the office of a king?

Not at all. I'm sitting in an open-plan office. That makes communications so much easier. We have floor meetings, just like at an investment bank. That way, you can deal with problems more easily and reply to questions arising.

You are a trained lawyer. Why did you become a banker?

By accident. I'm fascinated about preserving assets, by growing wealth and by detecting big new developments at an early stage. That's exciting, with all its variables – rational and emotional.

Duri Prader, 51, joined Zurich-based private bank Lienhardt & Partner in June 2013, taking the position of CEO designate and managing partner. In 2014, he assumed the operative responsibility for the company. Previously, Prader was head of private banking Switzerland at Vontobel for nine years. His first job in investment banking was at Swiss Bank Corporation, or UBS as it is called today.