According to the SBA’s (Swiss Bankers Association) annual report on the sector, the number of Swiss banks has declined to 275 at the end of 2014.
Nonetheless, the Swiss banking sector reported a rise in both assets under management and net income in 2014. Assets held increased to $6.9 trillion, nearly 8%, with a strong inflow from emerging countries and from transition countries with Europe more than compensating for the decrease in assets from Western Europe arising from tax settlements.
It looks as though the Swiss banking sector keeps holding a 26% share of the cross border wealth management market, of which it remains the global leader according to the SBA. However, staffing levels in Swiss banks have dropped to 104,053 at the end of 2014, a fall of 1.6%. The banking sector expects the employment trend to stay unchanged or slightly improve during the second half of 2015.
According to a study that KPMG Switzerland held, it predicts that during the next three years, more than 30% of Swiss private banks will disappear through liquidations and acquisitions. As a result, the number will reduce to almost 100 from 130 currently.
As KPMG continues, smaller banks will either leave the market or they should make fundamental changes to their model if they want to continue their operations profitably and sustainably.
‘However, they do not have much time left to enforce the necessary changes. We can expect the face of the industry to change significantly over the coming years’.
-Christian Hintermann at KPMG stated.