Despite being generally satisfied with their banks and wealth managers, 43 per cent of Germany-domiciled wealthy clients will consider switching to another provider, revealed the Client Monitor Wealth Management Germany survey by MyPrivateBanking, the Swiss-based research firm.

With respect to past experience, the clients rated the offerings and services of their banks with an average of 4.1 points (maximum 5 points) and gave the German banks relatively high grades, the survey showed.

The financial crisis had no major adverse effects on client satisfaction. However, in the future banks must be wary of the risk of declining customer loyalty because clients are keeping a critical eye on their wealth manager and are ready for a change, should a competitor offer more attractive terms.

The financial turmoil has hit wealth management along with other financial sectors. Some large players, such as UBS, have seen outflows from clients concerned about problems experienced at that firm, often benefiting smaller, boutique businesses.

Almost half (49 per cent) of the clients surveyed see a conflict of interest in advisory services where the wealth managers receive payments for a variety of products. Another issue is declining loyalty affecting high net worth and the younger bank clients in particular.

The research also revealed that 47 per cent of the clients with investable assets of over €500,000 ($618,000) are considering a change and for those clients up to 35 years old, this proportion reaches as high as 57 per cent.

"Although most wealth managers got to grips with the financial crisis, a long-term erosion of client loyalty is evident. In particular, the key target group of young, affluent clients is now much more willing to switch banks if they feel that a competitor will give them a better deal," said Steffen Binder, director of research at  MyPrivateBanking.

In other findings, the clients of small and medium sized private banks awarded an average score of 4.7 out of 5 points, which indicates a high client satisfaction.

ING-Diba chalked up a score of 4.6 points. The large banking groups Deutsche Bank, Commerzbank/Dresdner Bank, Sparda Bank and the Cooperative Banks occupy the middle ground in respect of client satisfaction.

The lowest satisfaction rates among wealthy clients have the Postbank with 3.6 points, and the Savings and Loans banks with 3.9 points.

"The medium and small Private Banks differentiate themselves through the competence of their advisers and the clear focus on wealth management. ING-Diba has the clear positioning as a winner on costs. Lack of any differentiation, by contrast, leads to low client loyalty and satisfaction," said Christian Nolterieke, managing director of MyPrivateBanking.

The company surveyed 300 wealthy private clients in Germany, whose assets are more than €250,000 and/or a gross income of more than €150,000.