The financial market in Switzerland’s southern-most region of Ticino is feeling the pinch: The number of jobs in 2016 declined much faster than in previous years and the outlook remains bleak.

Swiss banking in general is cutting costs and some members are even folding amid tough market conditions. The result: A decline in jobs across the sector, and the Italian-speaking region of Ticino is certainly no exception to the rule.

The number of full-time-equivalent jobs (FTE) in financial services in the Ticino fell to 6,782 last year, down 296 from a year earlier, according to a report by «AWP» (behind paywall), which was based on preliminary figures by the Ticino Banking Association.

BSI, Credit Suisse

The decline was much faster than in previous years: The industry lost some 771 FTEs over the past ten years, equal to a drop of 11.4 percent.

The reasons behind this acceleration are well known: One of the biggest events last year in the Swiss banking industry was the enforced closure of Banca della Svizzera Italiana (BSI), a Lugano-based institute founded in 1873. EFG International decided to acquire the business, but some of the jobs were lost in any case.

In addition to the takeover cum closure of BSI, the region also had to do with the shuttering of branches by bigger institutes. Credit Suisse for instance decided to close two of its nine branches by the end of June.

Bleak Outlook

The association cannot but offer a bleak outlook for the financial market, which for a long time had benefited from business with Italian citizens, who preferred to keep their assets safe in Switzerland, safe from the devaluation and a substantial tax rate.

The banking group said the decline had to do with industry-wide developments such as the industrialization of banking procedures, the erosion of volumes and profitability as well as the relocation of some back-office operations.

With an uncertain future for the industry and amid a wave of mergers and acquisitions, the association isn’t overly optimistic about the banking sector's ability to create jobs in Ticino.