Felix Niederer: «True Wealth Now Manages 1.6 billion francs»

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felix niederer: «true wealth now manages 1.6 billion francs». exactly ten years ago, true wealth entered the market. since then, the company has grown into one of the leading providers of digital wealth management. with 1.6 billion francs in assets under management, the firm has shaken up the financial industry. in an interview with finews.com, co-founder and ceo felix niederer discusses the company's development so far and his plans for the future. mr. niederer, with 1.6 billion francs in assets under management, true wealth has just reached an important milestone. but let’s take a step back to the early years: in those first years, you fell short of your business plan targets. what was the reason? our business plan was ambitious, and without historical data, it was difficult to realistically assess market development. in hindsight, we might have been slightly ahead of our time. when we launched in 2013, digital wealth management was a new concept in switzerland that many customers were skeptical about. our early clients were tech-savvy early adopters—mostly it experts or finance professionals familiar with etfs. but the broader public was wary of the idea of managing their wealth digitally. it took years to build that trust. additionally, we had to develop our platform from scratch, which consumed time and resources. by contrast, traditional banks or wealth managers often start with existing client books and sales networks. we began with nothing but our vision and the conviction that the market would eventually mature. today, we manage chf 1.6 billion. your co-founder, oliver herren, who had sold part of digitec galaxus to migros a few years earlier, brought his unique perspective to the company’s founding. yes. after partially selling digitec, he was looking for a way to invest his wealth efficiently and effectively. as someone deeply rooted in the digital world, he was frustrated that no financial institution or wealth manager met his expectations. the options were either too expensive, too complicated, or both. this gap inspired him to co-found true wealth with me—a platform that solves precisely those problems: efficient, transparent, and fully digital. when did the breakthrough come, and what factors contributed to it? a significant turning point came around 2020, as digital investment solutions gained broader acceptance. customers today expect intuitive digital platforms. this shift worked in our favor because we were ready: our processes are fully automated—from risk analysis to portfolio construction to rebalancing. another factor was our b2b strategy. we collaborate with partner banks such as basellandschaftliche kantonalbank (blkb), regiobank solothurn, and erste bank in austria, which use our platform for their own clients. additionally, our focus on direct-to-consumer business has paid off. over the last two years alone, we’ve doubled our assets under management, proving the growing acceptance of our model. the 3a pension pillar is also an important part of your offering. how is it being used? today, the 3a pillar accounts for over 10% of our assets under management. it is seamlessly integrated into our platform, making it extremely easy for customers to access. technically, it’s very straightforward with us: annual contributions can be automated, so no separate management is required. we see significant potential here, especially with the retrospective contribution option to the 3a pillar, which the swiss federal council will introduce starting in 2025. for this reason, we waive fees for the 3a components of our clients' portfolios. blkb took a minority stake in true wealth in 2016. could you have navigated the lean years without that extra financial muscle? without their investment, we would have had to pursue a different strategy and would have been less able to invest in personnel and marketing. we also likely wouldn’t have developed a b2b offering for banks. blkb has since launched its own digital wealth management platform, radicant. doesn’t that conflict with its collaboration with true wealth? we target a different audience and address different needs. we focus exclusively on wealth management. we’re a pure-play provider. what can you tell us about your client base? our core group of clients consists of investors with investable assets of chf 100,000 to chf 1 million. these clients are often overlooked by traditional banks because personalized advice isn’t profitable for them. but with our digital platform, we can offer high-quality solutions to this group cost-effectively. in traditional banking, this would likely be called the affluent segment. what about higher tiers, such as high-net-worth individuals? clients with investable assets of chf 1 million or more often hold multiple wealth management mandates and compare providers. apparently, we don’t fare too badly in these comparisons. by now, this segment accounts for over 20% of our client assets. has the recent growth come mainly from new clients or from additions to existing portfolios? it’s about 50:50. this is evident from our cohort analysis. we track how capital inflows and outflows develop over time for different client groups. it shows that clients acquired in a given quarter deposit more each year than they withdraw—even accounting for client attrition. that’s encouraging, as it reflects client satisfaction with our services. another factor is investment performance. positive returns contribute to asset growth if returns exceed costs. the founders of true wealth; felix niederer (left) and oliver herren. (image: courtesy). that’s measurable: we manage chf 180 million more than what clients have net deposited with us—deposits minus withdrawals. in other words, our clients are chf 180 million wealthier thanks to our services, after all fees. this sets us apart from many banks. banks often lack transparency about their clients’ actual returns. many clients pay high fees for products that don’t justify their cost. we focus on efficiency: low fees and long-term optimized investment strategies. it’s not only sustainable but also measurably successful for our clients. you also collaborate with erste bank in austria. how has this partnership developed? the collaboration with erste bank was an important step in establishing our technology in the european market. erste bank uses our platform to offer digital wealth management solutions to its clients. this partnership demonstrates that our model works internationally. we benefit from the reach and trust that an established bank like erste bank enjoys in the austrian market while helping them create a modern digital offering. do you plan to expand into other international markets? international expansion is not a priority for us at the moment. our focus remains on switzerland, where there’s still plenty of potential. one exception might be the uk market: the bilateral agreement between switzerland and the uk could be interesting, as it would allow us to serve wealthy british clients from switzerland. however, the regulatory burden for international business is significant, so we currently prioritize innovation in our home market. true wealth introduced child portfolios last year. what was the idea behind that? our goal was to promote wealth building and financial education. parents can open a portfolio for children with as little as 1.000 francs. these accounts are legally in the child’s name, and control automatically transfers when they reach adulthood. this model has proven extremely successful—50% of accounts were opened for children under six years old. what’s next for true wealth? we’re focused on continuously improving our platform and integrating new features. a recent example is the so-called etf lookthrough, which allows clients to see exactly which companies they’re invested in. the retirement sector offers significant potential, particularly with vested benefits accounts. we’re also planning to introduce additional services in automated investment strategies tailored even more closely to our clients’ needs. while international expansion remains a topic, our main focus is switzerland. here, we aim to set the standard for digital wealth management. felix niederer is co-founder and ceo of true wealth, a swiss online wealth management platform founded in 2013. he holds a master’s degree in physics from eth zurich. before founding true wealth, he worked in the financial industry, including four years at swiss re, specializing in portfolio management and risk modeling, and later as a portfolio manager for quantitative strategies at lgt capital management.

Exactly ten years ago, True Wealth entered the market. Since then, the company has grown into one of the leading providers of digital wealth management. With 1.6 billion francs in assets under management, the firm has shaken up the financial industry. In an interview with finews.com, co-founder and CEO Felix Niederer discusses the company's development so far and his plans for the future.

Mr. Niederer, with 1.6 billion francs in assets under management, True Wealth has just reached an important milestone. But let’s take a step back to the early years: In those first years, you fell short of your business plan targets. What was the reason?

Our business plan was ambitious, and without historical data, it was difficult to realistically assess market development. In hindsight, we might have been slightly ahead of our time. When we launched in 2013, digital wealth management was a new concept in Switzerland that many customers were skeptical about. Our early clients were tech-savvy early adopters—mostly IT experts or finance professionals familiar with ETFs. But the broader public was wary of the idea of managing their wealth digitally. It took years to build that trust.

Additionally, we had to develop our platform from scratch, which consumed time and resources. By contrast, traditional banks or wealth managers often start with existing client books and sales networks. We began with nothing but our vision and the conviction that the market would eventually mature. Today, we manage CHF 1.6 billion.

Your co-founder, Oliver Herren, who had sold part of Digitec Galaxus to Migros a few years earlier, brought his unique perspective to the company’s founding.

Yes. After partially selling Digitec, he was looking for a way to invest his wealth efficiently and effectively. As someone deeply rooted in the digital world, he was frustrated that no financial institution or wealth manager met his expectations. The options were either too expensive, too complicated, or both. This gap inspired him to co-found True Wealth with me—a platform that solves precisely those problems: efficient, transparent, and fully digital.

«Today, the 3a pension pillar accounts for over 10 percent of our assets under management.»

When did the breakthrough come, and what factors contributed to it?

A significant turning point came around 2020, as digital investment solutions gained broader acceptance. Customers today expect intuitive digital platforms. This shift worked in our favor because we were ready: Our processes are fully automated—from risk analysis to portfolio construction to rebalancing.

Another factor was our B2B strategy. We collaborate with partner banks such as Basellandschaftliche Kantonalbank (BLKB), Regiobank Solothurn, and Erste Bank in Austria, which use our platform for their own clients. Additionally, our focus on direct-to-consumer business has paid off. Over the last two years alone, we’ve doubled our assets under management, proving the growing acceptance of our model.

The 3a pension pillar is also an important part of your offering. How is it being used?

Today, the 3a pillar accounts for over 10% of our assets under management. It is seamlessly integrated into our platform, making it extremely easy for customers to access. Technically, it’s very straightforward with us: Annual contributions can be automated, so no separate management is required. We see significant potential here, especially with the retrospective contribution option to the 3a pillar, which the Swiss Federal Council will introduce starting in 2025.

For this reason, we waive fees for the 3a components of our clients' portfolios.

BLKB took a minority stake in True Wealth in 2016. Could you have navigated the lean years without that extra financial muscle?

Without their investment, we would have had to pursue a different strategy and would have been less able to invest in personnel and marketing. We also likely wouldn’t have developed a B2B offering for banks.

BLKB has since launched its own digital wealth management platform, Radicant. Doesn’t that conflict with its collaboration with True Wealth?

We target a different audience and address different needs. We focus exclusively on wealth management. We’re a pure-play provider.

What can you tell us about your client base?

Our core group of clients consists of investors with investable assets of CHF 100,000 to CHF 1 million. These clients are often overlooked by traditional banks because personalized advice isn’t profitable for them. But with our digital platform, we can offer high-quality solutions to this group cost-effectively.

«Our clients are CHF 180 million wealthier thanks to our services—after all fees.»

In traditional banking, this would likely be called the affluent segment. What about higher tiers, such as high-net-worth individuals?

Clients with investable assets of CHF 1 million or more often hold multiple wealth management mandates and compare providers. Apparently, we don’t fare too badly in these comparisons. By now, this segment accounts for over 20% of our client assets.

Has the recent growth come mainly from new clients or from additions to existing portfolios?

It’s about 50:50.

This is evident from our cohort analysis. We track how capital inflows and outflows develop over time for different client groups. It shows that clients acquired in a given quarter deposit more each year than they withdraw—even accounting for client attrition. That’s encouraging, as it reflects client satisfaction with our services.

Another factor is investment performance. Positive returns contribute to asset growth if returns exceed costs.

The Founders of True Wealth; Felix Niederer (left) and Oliver Herren. (Image: Courtesy)

That’s measurable: We manage CHF 180 million more than what clients have net deposited with us—deposits minus withdrawals. In other words, our clients are CHF 180 million wealthier thanks to our services, after all fees.

This sets us apart from many banks. Banks often lack transparency about their clients’ actual returns. Many clients pay high fees for products that don’t justify their cost. We focus on efficiency: low fees and long-term optimized investment strategies. It’s not only sustainable but also measurably successful for our clients.

You also collaborate with Erste Bank in Austria. How has this partnership developed?

The collaboration with Erste Bank was an important step in establishing our technology in the European market. Erste Bank uses our platform to offer digital wealth management solutions to its clients. This partnership demonstrates that our model works internationally. We benefit from the reach and trust that an established bank like Erste Bank enjoys in the Austrian market while helping them create a modern digital offering.

Do you plan to expand into other international markets?

International expansion is not a priority for us at the moment. Our focus remains on Switzerland, where there’s still plenty of potential. One exception might be the UK market: The bilateral agreement between Switzerland and the UK could be interesting, as it would allow us to serve wealthy British clients from Switzerland. However, the regulatory burden for international business is significant, so we currently prioritize innovation in our home market.

«Our focus remains on Switzerland, where there’s still plenty of potential.»

True Wealth introduced child portfolios last year. What was the idea behind that?

Our goal was to promote wealth building and financial education. Parents can open a portfolio for children with as little as 1.000 francs. These accounts are legally in the child’s name, and control automatically transfers when they reach adulthood. This model has proven extremely successful—50% of accounts were opened for children under six years old.

What’s next for True Wealth?

We’re focused on continuously improving our platform and integrating new features. A recent example is the so-called ETF Lookthrough, which allows clients to see exactly which companies they’re invested in.

The retirement sector offers significant potential, particularly with vested benefits accounts. We’re also planning to introduce additional services in automated investment strategies tailored even more closely to our clients’ needs. While international expansion remains a topic, our main focus is Switzerland. Here, we aim to set the standard for digital wealth management.

Felix Niederer is co-founder and CEO of True Wealth, a Swiss online wealth management platform founded in 2013. He holds a master’s degree in physics from ETH Zurich. Before founding True Wealth, he worked in the financial industry, including four years at Swiss Re, specializing in portfolio management and risk modeling, and later as a portfolio manager for quantitative strategies at LGT Capital Management.