Self-confident but not self-satisfied

A recently published study by Boston Consulting Group (BCG) highlights that Hong Kong has grabbed the top spot in cross-border wealth management. Is the Swiss financial centre losing importance?

The BCG study shows that Hong Kong has caught up with Switzerland in cross-border wealth management and is gaining momentum. The main cause is strong wealth growth in China: around two thirds of the assets managed in Hong Kong come from mainland China. At the same time, other financial centres in Asia, the Middle East and the US are also expanding, attesting to the intensity of international competition. The crucial factor, though, is not just the volume of assets under management but also their quality, along with global connections. That is where Switzerland has a big advantage as a leading offshore location: our client base is broadly diversified geographically, making it more stable than in many other financial centres. Swiss banks are also operating successfully in growth markets and participating directly in their development.

More and more countries are promoting their financial centres. Is Switzerland doing enough?

Many nations have a recognised that a flourishing financial centre is an important success factor for the economy as a whole. It encourages capital spending, innovation and corporate growth, and thus creates jobs and prosperity. They are therefore targeting investment towards an attractive operating environment and global positioning. Competition is no longer just between banks, but increasingly between locations as well. If Switzerland is to retain its status as a leading financial centre, we have to enhance our operating framework, protect our reputation and consistently back our strengths. That is very much the objective of the Swiss Bankers Association’s international strategy. A more proactive international positioning of the financial centre by politicians and the authorities is also key.

Which markets are the focus of your international strategy, and how are you going about it?

Europe remains central for the Swiss financial centre. At the same time, the US, Asia and certain regions in the Middle East are becoming increasingly important. We are monitoring developments on those markets closely and lobbying actively for our interests in dialogue with the authorities, associations and decision-makers. It is vital that Swiss banks can continue to grow their global presence in the best possible environment and do business worldwide. That is why we are backing open markets and a level playing field.

How can the Swiss financial centre set itself apart?

The Swiss financial centre stands for stability, reliability and high professional standards. Those make the difference, especially in uncertain times. One vital distinguishing factor, as Hong Kong shows, is a broad, geographically diverse client base that gives our financial centre greater resilience. At the same time, Switzerland is one of the world’s most innovative financial centres in areas such as digital assets and sustainable finance. That is complemented by high-quality research and training as well as close ties to the real economy.

Where do you see the biggest challenges?

The geopolitical situation has become more volatile, markets are fragmenting and the regulatory systems in a number of countries are increasingly diverging. Simultaneously, we are seeing some states taking targeted action to bolster their financial centres. Switzerland therefore needs to keep a close eye on international developments and get involved in relevant discussions at an early stage, especially where the active provision of cross-border services or competitiveness are at stake.

What role are members and other stakeholders playing?

Theirs is a key role. The international strategy depends on the involvement of our members. They bring market knowledge, networks and practical experience to the table and act as ambassadors for the Swiss financial centre abroad. Close liaison with the authorities and partner organisations is also indispensable. We are at our strongest when all the relevant actors pull together and represent our interests jointly.

What is your most important message to members?

We have every reason to be self-confident, but not self-satisfied. The Swiss financial centre has exceptional strengths. At the same time, global competition is hotting up. We therefore need to move forward, actively campaign for our position and consistently exploit opportunities. If we do that together, Switzerland will remain one of the world’s leading financial centres going forward.