Private banking in a fragmented world: insights from Xavier Bonna, Managing Partner at Lombard Odier

In a world increasingly defined by fragmentation and volatility, the role of private banking has never been more critical – or more complex. As geopolitical tensions reshape global markets and technological advancements redefine the boundaries of personalised service, the question arises: how can private banks envision a future that not only navigates uncertainty but thrives within it?

We sat down with Xavier Bonna, our new Managing Partner at Lombard Odier. He brings with him a wealth of expertise, as well as a legacy rooted in tradition. As the sixth generation in his family to hold this position, Xavier Bonna embodies a unique blend of heritage and forward-thinking vision. In this interview, he shares his insights on the trends shaping private banking, the transformative power of technology, and the evolving priorities of a new generation of investors. Together, we explore how private banking can chart a course through the complexities of a fragmented world, offering stability, innovation, and growth for high-net-worth individuals.

What are the most significant trends you see shaping the future of private banking in the next 5-10 years?

Firstly, I’d say sustainable investment. If you don't have strong expertise in sustainability today, you're out of the game for the under-40s. That trend is set to become stronger as more of the next generation inherit and take on family wealth and family businesses. We see many differences between parents and their children, but the biggest one is sustainable investment.

If you don't have strong expertise in sustainability today, you're out of the game for the under-40s

Secondly, artificial intelligence is likely to be a game-changer. However, having said that, we prefer to speak about augmented intelligence, because we believe it is best used as a human ‘super-charger’, to help us be more efficient and make better decisions, but keeping human oversight. This will particularly be the case with investing.

This leads me to the digital revolution more generally. Digital integration is set to become more and more important in private banking. Clients want easier access to information about their investments, they want more detailed information, and they want to make the whole process more efficient.

Read also: AI, geopolitics, climate change: seeing the bigger picture as tectonic plates shift

How do you anticipate technologies like AI and blockchain transforming the fundamental ways private banks deliver personalised services to their clients?

They will help create extra security and provide clients with access to personalised information most relevant to them. Banks that don’t embrace AI and digital innovation will quickly find they are behind the curve.

On a day-to-day basis, digital channels are key to interacting with our clients on their investments and needs. At Lombard Odier, we have developed our own digital platforms that offer them intuitive and secure interfaces.

However, the most important thing is that private banks must continue to have the human touch. For Lombard Odier, saying that “we're not salesmen” is not just PR: we really do take the time to get to know our clients in order to build tailor-made, long-term solutions for them.

How are you seeing the next generation approach sustainability investing, and investing in general? What are the key differences you're observing compared to previous generations?

It’s not a hard-and-fast rule, but in general we see the next generation is more conscious about the planet, about the environment, and most of them would like to invest in a sustainable manner. For us, it’s a question not only of building ambitious, high-performance investment strategies, but also of proposing relevant, accurate reporting on the real-word impact of investments and business models.

New generations also want to understand their investments better. They want to be more involved, more hands-on. For clients who are at the beginning of their wealth management journey, we offer personalised training, with the support of in-house analysts, specialists in macroeconomics, investments or sustainability, or even external contributors as required.

New generations also want to understand their investments better. They want to be more involved, more hands-on

This may involve understanding financial markets as a whole, how to assess the sustainability of companies, or understanding the opportunities and challenges of private assets. Our aim is not to tell clients what to do, but to accompany them so that they can better grasp the impact of their investments and make informed decisions.

Considering the current global economic climate – including the ongoing discussions around trade and geopolitical factors – what is your overall outlook for wealth preservation and growth for HNWIs in the remainder of 2025?

Geopolitics has been a top concern for many clients for a while now, and this is even more the case with the trade tariffs brought in by President Trump. But this does not mean HNWIs should be afraid for the rest of 2025. It is possible that the tariffs will reduce growth, but we don’t see a global recession in the near future.

Overall, I am positive about the rest of the year. We are seeing new opportunities in many areas, such as in digital and clean energy infrastructure, and in private assets. But of course there are very real challenges, and investors must stay vigilant. In volatile times like these, active rather than passive management, and having access to the best managers, is all the more important.

Overall, I am positive about the rest of the year. We are seeing new opportunities in many areas, such as in digital and clean energy infrastructure, and in private assets

We've seen discussions about potential changes in climate policies, which could affect how businesses and investments are handled. How might these policy changes influence the kinds of investments that private banking clients should consider, and what are some ways to prepare for any uncertainties?

In recent years we’ve seen political headwinds for some climate policies – for instance, President Trump’s executive order for the withdrawal of the US from the Paris Agreement, and his “drill, baby, drill” comments about US oil production. However, existing climate commitments outside the US are still strong – the EU and China in particular are likely to take the global lead.

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For investors, the important thing is to be less exposed to areas that are reliant on political policy – such as those that depend on government subsidies – and more focussed on things like energy and digital infrastructure, where the growth is market-driven.

Another example is precision and regenerative agriculture, where growth is likely to be driven, partly at least, by the need to adapt to the on-the-ground impacts of climate change. In some sub-sectors of today’s food system this is becoming more and more important, not because of policy, but because of the hard reality of rising temperatures and more frequent extreme weather events.

Read also: Trump’s climate policy and its impact on investments

When it comes to managing family wealth across generations, what are some of the key shifts in priorities and conversations you're observing? How is the private banking sector, and more specifically, Lombard Odier adapting its approach to support these evolving dynamics?

One of the key things is the dynamic I mentioned about younger generations wanting to be more hands-on with their investments, and also being interested in finance earlier on. My advice to parents of the next generations is to involve them as early as possible.

Even if they’re only there as observers, this already enables the children to familiarise themselves with the language of finance and wealth management

This is part of our unique proposition at Lombard Odier. I myself make some appointments with clients accompanied by their teenage children. Naturally, their involvement is gradual and prepared with the parents so that everyone feels at ease. But even if they’re only there as observers, this already enables the children to familiarise themselves with the language of finance and wealth management, and to become aware both of the opportunities that an estate of a certain size can offer, but also of the associated risks and responsibilities.

Beyond traditional investments, what are some of the emerging or increasingly important needs you're seeing from your clients – whether it's related to assets like art, philanthropy, or other complex areas – and how is the industry evolving to meet these holistic wealth management demands?

Philanthropy is something that often brings the next generation into the story. It’s becoming more normal for clients to want to be involved in philanthropic projects earlier in life, and this is something that wealth managers must be able to facilitate. At Lombard Odier we have numerous ways in which we can help, whether by setting up individual projects or foundations, or through our own foundation, ‘Fondation Lombard Odier’.

This is also something that can help bridge the generations. Before talking about amounts of money and specific investments, it’s important to talk about future projects and define shared values between the generations. We may not agree on everything, but if there’s a basic foundation and well-defined shared values, it greatly facilitates discussions and the management of a family estate. A concrete first step could be the creation of a family investment fund dedicated to a particular theme, or a philanthropic project in which all generations of the family would be involved.

Philanthropy is something that often brings the next generation into the story

Art is also relevant – for many HNWIs a significant proportion of the estate’s value can be in artwork collections. To manage this, especially the tax implications, it’s important for wealth managers to build networks of expertise that include external experts, as no one wealth manager can be an expert in every aspect of wealth including all genres and periods of art! This is more and more true now – wealth management has to be holistic, often involving multiple parties and experts in different areas.

Private assets is another area that is growing. Private assets are no longer just an interesting ‘add-on’ to portfolios. Increasingly, they are becoming a key diversifier to build resilience and growth potential into portfolios, as a growing number of important investment opportunities are now accessible only as private assets. This means private bankers must build relationships and networks to tap into these opportunities.

In light of the current global economic landscape, what broad advice would you give to HNWIs to navigate potential uncertainties and safeguard their wealth in the coming months?

I think the first thing would be not to panic. In the current climate, it can often seem as if everything is moving very quickly, as if the world is changing too fast. The temptation can be for investors to try to move even quicker so as to stay ahead of the curve. But at Lombard Odier, we believe that as the world gets quicker, investors should calmly take a step back to see the bigger picture. That’s what HNWIs should trust their bankers to do at this moment in time. That’s why trust is so important between a banker and their clients.

I’m the sixth generation of bankers within my family working for Lombard Odier. We have been linked to the company for more than two centuries, and of course Lombard Odier has been around since 1796. The bank has grown stronger through all that time, across more than 40 financial crises – that’s why we are able to have the confidence to react calmly, because as an institution, and for me personally as a family through the generations, we’ve seen similar upheavals many times before.

One key thing I’d say for HNWIs at a time like this, is now that we are in a period of change and volatility this is not a simple situation of ‘a rising tide lifts all boats’. In times like these active management is particularly key.

At Lombard Odier, we believe that as the world gets quicker, investors should calmly take a step back to see the bigger picture

Looking ahead, what do you see as the most crucial skills and expertise that private bankers will need to develop to effectively serve their clients in the future landscape?

Technology will undoubtedly play a greater role in enhancing the work of private bankers and the client experience. But personal relationships remain essential. As people live longer, healthier lives, we may see more intergenerational challenges.

Establishing family governance is key. I see this regularly in the families we work with. This exercise, which can be undertaken with the support of wealth planning specialists, can lead to the creation of a family charter, which clarify values, decision-making processes, and conflict resolution mechanisms. It’s a worthwhile exercise, as it helps to create discussion and to secure relationships and assets.

There is another element for private bankers, which is that they can no longer take the next generation for granted, i.e. that they will stay with the same bank, even if the family and the bank have been working together for many previous generations.

Private bankers […] can no longer take the next generation for granted, i.e. that they will stay with the same bank

For large families involving the new generations, we often work in pairs, with a senior banker and a junior, so as to have different points of view represented. I notice that the next generation also often wants to meet their peers in a spirit of community. We therefore encourage and facilitate networking, enabling them to forge links, share concerns, experiences and ideas, and even create business opportunities. The new generations recognise themselves in our history and our entrepreneurial DNA, because we are “families working for families” or “entrepreneurs working for entrepreneurs,” forming a community.

Read also: From geopolitics to AI – entrepreneurs and family businesses rethink a changing world at LO Generations 2024

What are some of the most promising and innovative financial products or services that you anticipate becoming more prominent in private banking in the coming years?

Coming back to sustainable investment, I think we’ll see more innovative and interesting investment opportunities and financing mechanisms. Finance can play a key role in terms of climate change, and also when it comes to changing demographics, because to manage these transitions you need a lot of investment, and most of the time it’s really complicated to get this investment from the public, so you need investment from ‘smart finance’, so to speak.

Then it also comes back to artificial intelligence, which will be a monumental revolution in lots of ways, some of them we know, while some of them will be harder to predict.