Of Special Interest
13th September 2011
Study see moderate Swiss banking growth.
A joint study between the Swiss Bankers Association and the Boston Consulting growth sees revenue growth of between CHF 5.3bn and CHF 10.1bn in the period from 2010 to 2015 on a 2010 base of CHF 58.6bn (€48.6bn £41.8bn $66.4bn ¥5,120bn Y425.1bn). It may surprise that Swiss banking revenue represents only 6.7% of Swiss GDP.
The lower growth figure is derived largely from doing what the banks have done over the last few years and the higher from concentrating on growth areas.
Private banking was viewed as the largest growth areas. The report sees the following opportunities as open to banks in order to generate the additional revenue in private banking:
- UHNW offensive: More revenues from an improved service offering and a dedicated coverage model. Providing full family office services could also generate more revenue.
- Wealth planning offensive: Greater client penetration with full-service financial planning. This demands greater advisory skills in issues to do with succession planning, inheritance and protecting living standards.
- Emerging markets: From its position as a leading centre for cross-border asset management, Switzerland can boost asset inflows from emerging markets if it adopts a clear strategy.
- Independent asset managers (IAMs): The changing environment is leading IAMs to make increasing use of bank services for regulatory expertise such as reporting, tax returns and market-specific product offerings. This broader support also provides clear additional benefits for their end clients.
Full report in German only: http://www.swissbanking.org/en/20110912-2000-bro-bankenstudie_zusammenfassung_en_web-cwe.pdf
Summary report in English: http://www.swissbanking.org/en/20110912-2000-bro-bankenstudie_zusammenfassung_en_web-cwe.pdf