Financial Centre Switzerland
Switzerland is highly regarded around the world as a financial centre. This is not due only to the country’s economic and political stability, but also to its bank-client confidentiality, which although hotly debated, remains firmly in place to this day.
A financial centre of excellence with global reach
Swiss banks are among the world leaders in wealth management, with assets under management of some CHF 5,600 billion. Indeed, three Swiss banks feature among the world’s ten largest wealth managers. The financial industry contributes 11% of national GDP and employs more than 200,000 skilled staff in Switzerland.
Over recent decades, Switzerland as a banking centre has succeeded in attracting the best financial experts from around the globe and has accumulated tremendous expertise in wealth management.
The Swiss banking sector also represents a financial centre of excellence, in which highly experienced employees have the knowledge to offer their clients comprehensive investment advisory and wealth planning services that meet their specific needs. What is more, they are able to do this in the client’s own language.
Although Switzerland is a comparatively small country, with roughly eight million inhabitants, no fewer than four official national languages are spoken. The Swiss people are therefore used to speaking multiple languages and are open, respectful and friendly in their dealings with foreign cultures. Their cosmopolitan attitude has a long tradition.
A diversified banking system
The banking sector in Switzerland is characterised in particular by its diversity. The country’s banking system is based on the principle of the universal bank: unlike the dual banking system found in English-speaking countries and Japan, in Switzerland all 300 or so licensed banks may offer the full range of banking services. Despite that, very different and specialized forms of banks have emerged over time.
In fact, many Swiss banks are specialised in specific areas and have outsourced certain banking activities. Not least, they have developed extensive expertise in the use of global financial platforms with the aim of giving their clients access to best-in-class financial products and services.
How much scale is needed in private banking?
In recent years, size was often regarded as the key criterion for a bank’s competitiveness. Takeovers, mergers and restructuring have therefore increased within the international banking industry. However, many clients found that the individuality and personality of their bank has been lost in the process.
In private banking in particular, there is a growing realization that size is not the only relevant factor. Capital adequacy, transparent execution and the ability to respond to clients’ individual needs with tailored solutions are also critical.
From a global perspective, Swiss banks enjoy above-average capital coverage and have therefore the capability to invest in a highly professional infrastructure. Their extremely efficient back-office systems free up resources to concentrate on the most important priority – providing clients with personalised advisory services and support.