New cross-border provisions and tax demands from abroad have been placing increasing pressure on Swiss private banks over the past few years. Developments show that transnational regulation of export-oriented private banks has become a reality. This year’s private banking study conducted by KPMG and the University of St. Gallen (HSG) reveals that the sector can continue to be successful in the future despite, or perhaps because of, this regulation.
The private banking study examines aspects which will be pivotal to the success of private banking activities in the near future while also identifying areas where action needs to be taken as a result. The study’s key findings:
The challenges facing Switzerland’s banking industry are well known. Access to foreign clients is essential for banks’ survival. Their business models need to be refined and focused on core markets, products and segments. Technology will play a central role in their efforts to remain efficient and offer high-quality services. It is up to banks to shift their focus back to clients, advise them based on their wants and needs and serve them with commitment in a way that is both transparent and ethical. Clients are ready to pay for good services, yet in return they want to experience a top-notch client relationship. Switzerland will continue to be an attractive financial center in the future, as well, in no small part due to the country’s stability, professionalism and high service quality.
The study entitled “Future of Swiss Private Banking – Turning Regulation into Value” was conducted jointly by KPMG and the Institute of Management of the University of St. Gallen (HSG). It is based on a combination of interviews and an online survey and comprises around 50 banks. Switzerland’s two biggest banks were not included in the study.
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