Thursday 17 October 2024

Press Conference 2024

The financial sector remains a strong and stable pillar of Geneva's economy, contributing 38,000 high value-added jobs and a significant share of the canton’s GDP (12.9%). In the face of rising geopolitical challenges and a sluggish economic environment, banks and financial companies are acting with decisiveness and clear-sightedness vigilance. To address these challenges, the Geneva Financial Center Foundation (GFCF) has identified three strategic priorities: access to markets, attractiveness, and artificial Intelligence (AI), otherwise known as the "three A's".

Strength in unity
With over 38,000 high value-added jobs and a 12.9% share of cantonal GDP, the Geneva financial sector is fulfilling its role as a key driver of the local economy. Public perception continues to be largely favourable: 60% of Swiss citizens have a positive opinion of banks, according to a survey conducted by the Swiss Bankers Association (SBA) in the spring of 2024. In a context of rising geopolitical uncertainty, banks and financial companies have correctly identified the geopolitical dimension as an essential factor for decision-making, given that their activities are essentially outward-looking. They are also closely monitoring changes to the regulatory framework affecting their access to the European market, as well as other regulatory and fiscal developments.


Access to markets: a long-term effort
Under the auspices of the SBA, the Swiss financial industry has proposed an "institution-specific" approach that calls for the creation of a single European authority with whom interested financial intermediaries could register to obtain a "passport" authorizing them to offer banking and investment services throughout the European Union (EU). In an historic first, the Geneva Financial Center Foundation joined forces with its counterparts in Zurich and Lugano to petition the Federal Council in support of this approach.


Attractiveness: tax incentives

Tax incentives at the international, national, and local levels are essential to foster job creation, investment in research and development, and innovation. The refusal at the ballot box, on 22 September 2024, of a bill to lower the rate of cantonal tax for entrepreneurs on the value of their company is a missed opportunity to strengthen entrepreneurial activity in our canton.


Artificial intelligence: opportunities and challenges

Artificial intelligence presents us with vast possibilities and promises to create significant economic value. The financial industry is already using AI to improve the quality of its services and boost customer satisfaction. However, these opportunities must not overshadow the challenges inherent in developing systems that operate without human oversight. In this context, regulation and training are central elements of the AI revolution.  


Economic survey: a sound and pragmatic banking and financial sector

The results of the 2024–25 economic survey reflect an economic slowdown in 2024 followed by a likely recovery in 2025. The banking and financial sector faces a moderate economic recovery, higher expenses, and a decline in income from interest. Despite this challenging context, several indicators underline the good health of banks, asset managers, and other financial intermediaries: wealth management is enjoying favorable momentum, with an increase in assets under management, while on the employment side, job creation is also trending positively.