Two-thirds of bank employees in Switzerland believe the country's financial center has lost credibility following the collapse of Credit Suisse, according to an industry survey by finews.com, the Swiss Finance Institute, and Swiss PR agency Financial Communicators. At the same time, 70 percent of the survey’s participants say the «new» UBS has a good chance of succeeding.

Three-quarters of participants in a recent survey of career prospects in the Swiss financial sector say the reputation of the banking profession has been negatively impacted by recent events around Credit Suisse, with one in four (26 percent) saying it would take a long time for it to recover. Some 44 percent think «real role models on the executive floors» are what’s needed to improve the industry's reputation. Participants also judge Finma harshly, with 65 percent calling for a more competent supervisory authority.

The Best of Bad Options

These are some of the results from the 12th online survey of over 1,100 employees in the financial sector conducted this spring by the industry portal finews.com together with the Swiss Finance Institute (SFI) and the Swiss PR agency Communicators.

The takeover of Credit Suisse by UBS is considered by 38 percent of respondents to be the best of all bad solutions. One-third (32 percent) think Credit Suisse should have been split up and only its systemically important parts saved. Participants are divided on the failed bank’s future, with 46 percent of respondents saying the bank should be rapidly integrated, and 49 percent in favor of spinning off the Swiss unit.

Inactive for Too Long

Two-thirds (67 percent) of respondents see three reasons for the Swiss financial center losing validity over Credit Suisse’s collapse. Firstly, authorities stood idly, secondly, they had to resort to applying emergency law and thirdly, Switzerland lacks a consistent strategy for its financial center.

The «new» UBS, with its excellent competitive position, good management, and the fact that it will be more closely regulated from now on, has a good chance of succeeding, according to 70 percent of respondents.  

Professional Reputation

Over the past decade, job prospects in the financial sector have been on a rollercoaster ride. In 2013, only 2.8 percent of respondents rated the outlook as «very good» and 39.4 percent as «good».

Last year, these numbers had risen to 11.5 percent («very good») and 55.8 percent («good»). After the most recent events, these dropped to 4.3 percent («very good») and 36.5 percent («good»), meaning a large part of the reputation gained since the 2008 financial crisis vanished within a very short time.

For most bankers requirements are clear and include advancing digitalization, IT skills (according to 67.10 percent of all respondents), and the willingness to continuously change (59.5 percent).

Interestingly, just two years ago for 71.5 percent of participants, the willingness to change was key. In an increasingly complex professional world, specialized knowledge is still in high demand (50.5 percent), compared to the previous year, when the figure was 50.8 percent.

The Rise of Family Offices

Those surveyed see the greatest career opportunities in the IT sector (59.4 percent of respondents) as well as digital product innovations (57.4 percent), and in Legal & Compliance divisions (46.5 percent).

Two additional areas have gained favor among employees, with 37.7 percent of those surveyed saying that family offices will offer great career opportunities over the next few years, and 36.9 percent seeing great potential in «alternative investments».

A decade ago, the Legal & Compliance sector came in first place. Respondents at the time gave it the greatest career opportunities (75.2 percent), followed by Asset Management (51.0 percent) and Wealth Management/Private Banking (42.4 percent).

Biggest Career Barriers

The survey also looked at what factors hinder career development. Business departments relocating abroad was cited by 44.8 percent (previous year: 43.3 percent) of participants as the top reason. New business models in fintech and neo-banks are the second biggest career hindrance for traditional bank employees with 40.1 percent (previous year: 40.3 percent). «Restrictions» due to stricter regulation with 36.6 percent (42.4 percent in the previous year) came in third place among respondents. 

A quarter (25.6 percent) of respondents see competition from expats as the biggest career impediment, up from 22.0 percent the previous year. The results show that just over one in five respondents (22.2 percent) didn't receive a bonus for 2022, and for 24.8 percent they were the same amount as the year before. Bonuses still account for a substantial proportion of their annual income, with 10 to 25 percent of annual salary for 38.5 percent of respondents, and as high as 25 to 50 percent for 22.9 percent.

Further Training

There is an above-average awareness of the importance of continuing education in the financial sector, with 43.4 percent of respondents regularly attending topic-specific seminars, and 38.0 percent going to public lectures and conferences. Some 23.1 percent of survey participants are planning a course at a university and 24.0 percent seeking to continue their education with exam-free courses. These results show the tendency towards increased continuing education has increased compared to the previous year.

«The survey results confirm our view that excellently qualified employees are a cornerstone of our Swiss financial industry's long-term success. We are proud to be able to make an important contribution to this, partly through our SFI Master Classes and over 2,000 graduates,» Markus Buergi, Chief Financial and Operating Officer at SFI said.

This year's survey included 1,139 respondents, 75.6 percent of whom were men and 20.7 percent women; last year women accounted for 17.9 percent. No information was given by 3.7 percent of the respondents, with 10.9 percent of respondents between 20 and 30 years old, 31.4 percent between 30 and 45 years old, 46.7 percent between 45 and 60 years, and 11.0 percent over 60 years.

As many as 40.1 percent of the respondents have a Master's degree and 10.9 percent have a Master's degree from a university of applied sciences, while 10.6 percent have a Federal Advanced Federal Diploma. The survey has been conducted annually since 2012.