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The banking association Swiss Banking has presented a study that underscores the importance of the financial industry for the Swiss economy. To ensure this remains the case, prudent strategic decisions and smart, focused regulation are needed.
The study, commissioned by Swiss Banking (Swiss Bankers Association, SBA) and conducted by the consulting firm Oliver Wyman, concludes that the banking industry plays a key role in supporting economic growth and strengthening Switzerland’s capacity for innovation.
In 2024, the Swiss financial sector contributed CHF 74 billion to the national economy, which corresponds to 9 percent of GDP. Of this contribution, 57 percent came from banking services (5 percent of GDP), and 43 percent from insurance and other financial service providers.
Around 160’000 highly qualified professionals work in the banking sector. For each job in the industry, there is an additional job in another sector that depends on it. Annual tax contributions amount to CHF 7 billion, making banks one of the most important sectors in the Swiss economy. Every eighth tax franc comes from the financial industry, emphasized Swiss Banking President Marcel Rohner during the presentation of the study on Friday in Zurich.
The Swiss financial center is considered one of the most important worldwide and is a key pillar for prosperity, innovation, and international connectivity in Switzerland. This has led to more favorable financing conditions and a lower interest rate level in Switzerland than abroad for many years, Rohner added. This represents an important competitive advantage for companies and also has positive effects for consumers.
Another factor is the success in international wealth management,» said association CEO Roman Studer. Some of these assets also contribute to financing volumes.
The industry provides efficient access to capital for both private and corporate clients – nationally and internationally. Especially for small and medium-sized enterprises (SMEs), a stable supply of credit is essential. There is a close symbiosis between the banking sector and the broader economy.
The financial sector is growing, and much has emerged in recent years, said Rohner. He cited examples such as the relatively young financial service providers Swissquote and Partners Group, which are successful global publicly listed companies, as well as fully licensed digital asset banks like Amina and Sygnum. In 2024, there were 484 fintech firms.
As a result, the financial ecosystem is deepening, and fintechs and banks are increasingly benefiting from one another. New markets are emerging with digital assets, such as crypto ETPs, ESG investments, or impact investments.
To ensure that Switzerland’s financial center remains successful in the future, prudent strategic decisions are needed. Economic openness, smart and focused regulation, and a solid reputation, especially about money laundering or terrorism financing, are key to the financial center’s competitiveness.
Regulation must be internationally aligned. This also includes robust and broad-based liquidity safeguards as well as solid and competitive capital requirements. We must and want to learn the right lessons from the Credit Suisse case, emphasized Studer. This includes liquidity safeguards and resolution capabilities. That must also apply to UBS.
The only remaining major Swiss bank plays a crucial role in the ecosystem, from which smaller banks also benefit. «UBS is important on the corporate client side, and we need a global bank that can offer products and services others cannot, Rohner said.
The position of the Swiss banking sector should not be taken for granted and must be protected,» he added. «We want to take good care of our financial center and shape it with ambition, in line with our tradition of excellence, trust, integrity, and stability. That’s how we stay globally relevant and future-ready. That is our responsibility – and our opportunity.
When it comes to regulation and capital requirements for UBS, a middle ground will be found – I’m confident there’s no insurmountable divide.
The fact that the political process is dragging on has both advantages and disadvantages. The extended timeline creates uncertainty, but also ensures that questions are addressed holistically rather than in isolation.
