How well positioned is Switzerland's banking centre? 

Nina-Alessa Michel and Martin Hess discuss the findings of the latest Banking Barometer and Swiss Banking Outlook

Anyone skimming through the findings of the Banking Barometer will come away with one clear conclusion: the Swiss banking sector is in excellent shape. 

Martin: The figures certainly point to a strong year. Net income reached an all-time high in 2025, while assets under management rose to a record level. What makes this development particularly remarkable is that the environment remains challenging. The Swiss economy is growing only moderately, interest rates remain at zero, geopolitical uncertainties continue to generate volatility, and the role of regulation is being intensely debated.

…and what does the Swiss Banking Outlook show? 

Nina: The outlook is broadly positive as well. The majority of experts surveyed for the Outlook expect higher net income in 2026. That said, this is by no means unqualified optimism. The responses also clearly highlight the areas where the industry is under pressure.

Despite zero interest rates and challenging market conditions, aggregate net income continued to grow last year. What is driving this? 

Martin: The main growth driver at present is not traditional interest business. Particularly strong momentum is coming from commission business and services as well as wealth management. These are precisely the areas where Switzerland benefits from its traditional strengths and international positioning.

Nina: The survey results also show that experts largely expect further growth, particularly in cross-border wealth management and in commission business and services.

Is this also a sign that banks’ business models have changed? 

Nina: Interest business remains important, but banks now benefit from a broader earnings base. Services related to investing, advisory activities and wealth management are becoming increasingly important. This makes many banks more resilient in a challenging interest-rate environment.

Why does Switzerland remain so successful in wealth management? 

Martin: Respondents cite legal certainty and political stability as key factors. Particularly in times of geopolitical uncertainty, Switzerland’s role as a trusted and reliable financial centre becomes even more important. This is nothing new and is also reflected in expectations for cross-border wealth management. 

Which finding from the Swiss Banking Outlook stands out most to you? 

Nina: What impresses me most is the clarity of the responses on certain issues. There is, for example, a remarkably broad consensus that digital customer experience and the successful adoption of artificial intelligence will be crucial to the future competitiveness of Switzerland’s banking centre.

Artificial intelligence is seen as being so important for competitiveness even though the business case is not yet fully clear in many areas? 

Nina: Precisely because the full impact is not yet visible, many banks view this as a strategic issue. AI has the potential not only to improve operational efficiency, but also to enhance customer interaction, risk analysis, product development and data management. Institutions that fail to keep pace may face competitive disadvantages in the medium to long term.

Overall, the studies paint a positive picture. Where do you see the greatest risks? 

Martin: The responses are very clear on this point. The greatest risks identified are increasing regulatory density and regulatory uncertainty. At the same time, competitive pressure from digital platforms and technology providers continues to grow. Banks need to keep both developments firmly in view.

On the other hand, the digital customer experience is described as the industry’s greatest opportunity. Isn’t that a contradiction? 

Nina: Not really. Digitalisation creates numerous opportunities to serve clients better and deliver services more efficiently. At the same time, new technologies are giving rise to new competitors, which increases competitive intensity. That is precisely why respondents see digitalisation and technology as both an opportunity and a challenge.

Business results remain encouraging. At the same time, the Banking Barometer shows mixed developments in employment. How should this be interpreted? 

Martin: The decline is primarily attributable to the large bank segment, namely the integration of Credit Suisse into UBS. All other banking groups created additional jobs in 2025. Looking at the remainder of 2026, the institutions surveyed largely expect employment levels to remain stable. This shows that the employment situation in the banking sector is much more nuanced than the headline figure and media coverage might suggest at first glance.

What should policymakers, businesses and the public take away from these two studies? 

Martin: The studies show a banking centre that remains robust even in a challenging environment. The outlook is positive. The key will be to preserve Switzerland’s traditional strengths while at the same time harnessing the opportunities arising from technological and economic change.