Switzerland's financial center needs a swift kick of innovation, according to Deloitte CEO Reto Savoia and banking partner Jean-Francois Lagassé. The duo outline what needs to be done, in an interview with finews.com.
Reto Savoia, the Swiss financial sector is a relevant part of the Swiss economy. Will it increase or decrease in importance?
If you had asked me before the corona pandemic, my answer would have been despite undisputed strengths, such as in international private banking, the financial sector will tend to lose in importance compared to the life science, technology and industrial sectors.
This means that corona has caused a shift in this trend?
Yes. The relevance of the Swiss financial sector as part of the overall economy has increased again. The banks have articulated their importance in this crisis and have been able to prove themselves as part of an overall solution.
«Security aspects like a stable currency count»
As a result, the financial sector has undoubtedly regained more weight in the debate about the future of the Swiss economy, especially since insurers have also proven to be strong in the long term. I want to point out that the reputation of the Swiss financial industry abroad remains excellent. In any case, it is much better than is sometimes assumed here in Switzerland.
Over the past decade, regulation and digitization have been the main driving forces in the financial sector. What are the future drivers?
My theory is that global uncertainties and economic turbulence will continue, while new customer habits and digitization will continue to be the disruptive elements for the financial sector. Banks and insurers will have to cope with these disruptive challenges. If they succeed in doing so, Switzerland will be able to further accentuate its advantages as a safe haven with a stable currency and stable political environment, which will have a positive impact on wealth management in particular.
At the same time, however, this would mean a risk to Switzerland's reputation. After all, we no longer want to be seen as a hoard of untaxed money.
This need not be a risk to the reputation of the banking centre. From our contacts with an international and wealthy clientele, it is clear that it is increasingly security aspects that lead to the choice of a Swiss private bank and thus a stable currency.
«Ideally positioned for growth – but homework remains»
Incidentally, data also show that various client groups are now having their money managed in Switzerland, correctly taxed. This is simply because they prefer stable conditions. In this respect, Swiss banks are well-positioned for growth – if we do our homework.
What are they?
We must not over-regulate the Swiss economy. In international comparison, Switzerland still has a head start in many regulatory areas. But this is melting away. We cannot afford that, given the high personnel costs that banks in particular also have here in Switzerland. But I am also thinking of sustainability: if Swiss banks gain a lead here, this will not only be beneficial for growth but also to the reputation of the financial centre.
«Softer» issues such as sustainability, diversity, and new work models are a priority in finance. How does this influence your consulting activities?
I think that the new generation of workers and customers is much more concerned about the benefits and impact of their activities - or investments. This puts pressure not only on banks. As consultants, we too must provide answers as to how a bank or an employer in general can remain relevant and attractive to top talent.
«'Nice to have' factors are now a demand»
We see this as a major change: in the past, such issues used to be «nice to have,» especially in the high-wage country of Switzerland, and this has clearly changed. The same applies to clients, who now often place high demands on a financial services provider in terms of its diversity strategy. This was not the case two years ago.
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