Today Geneva is universally recognized as a global financial center. Its reputation depends on the expertise and skills of the 35,600 people working in finance and banking. Innovation is another key success factor. The Geneva financial center is exploring many promising avenues to pioneer the finance of the future, including FinTech, sustainable finance and philanthropy.
According to the "EY Banking Barometer 2020", Swiss banks are operating in a challenging environment. The normalization of monetary policy has become a distant prospect, and banks face a continuation of negative interest rates and extraordinarily flat yield curves.
But how can they tap into new sources of revenue? Most of the banks (60%) agree that a stronger focus on customers is key.
The majority of respondents has a positive perception of Swiss banks and they are considered reliable, secure and an important employer. The banks’ positive image is the result of a combination of their commercial success and social responsibility, and the respondents’ positive experiences with them in everyday life. In addition to examining the perception of the reputation of Swiss banks and opinions about the financial centre, the 2019 survey also focused on the topic of pensions.
Ten years after the global banking crisis, the Swiss financial industry faces its next crucial challenge. Once again, it must fundamentally renew itself, and perhaps even selectively reinvent itself. The driving force behind this new evolution is the growing digitalization of the banking sector.
In light of this, the Swiss Finance Institute (SFI) has examined, through a representative study, the current status of digitalization within the Swiss banking sector. The main objective of the study is to determine the level of digital maturity of Swiss banks compared with the rest of Europe. Switzerland leads 1-0 at half time!
Created in 1991 by the 80 banks that were members of the Geneva stock exchange, the Geneva Financial Center (GFC) is the umbrella association of the financial sector. The financial sector generates 35,600 jobs and accounts for 12% of Geneva's GDP. It is based on three main pillars: private and institutional wealth management, commodity trade financing, and commercial and retail banking. With the presence of activities such as marine freight and inspection, Geneva has emerged as an economic cluster with a unique concentration of skills. The central mission of the Geneva Financial Center is to support this value chain and to contribute to the development of an optimal business environment for all financial center partners.
The third Deloitte International Wealth Management Centre Ranking shines light on the competitiveness between international private wealth management centres and analyses their market volume, growth performance, profitability and efficiency over the past years.
The business environment for international wealth management centres has become more challenging over the last years. The focus for competitiveness has shifted towards provider capability and digital maturity. Between 2010 and 2017, there has been a fall in international market volume (IMV) as well as net new assets (NNA) of the leading centres. Cost competitiveness remains an ongoing challenge.
Switzerland still remains the biggest centre with US$1.84tn international market volume. The centre’s well-rounded competitive characteristics enabled it to outperform its global counterparts by increasing its profit margin by 18.2% between 2015 and 2017.