21:48 minutes listen, Podcast in German

The dynamics of the Swiss private banking space are shifting further: As the strong banks snapped up increased market share in 2020, the weaker institutes struggled to offset the decline in interest income. In this episode of our KPMG Expert Talk, Philipp Rickert, Head of Financial Services and Christian Hintermann, Partner Financial Services, take a look at the results of the latest study on the Swiss private banking sector, compiled each year by KPMG together with the University of St Gallen (HSG).

"We continue to see Swiss banks' performances becoming more polarized, with the stronger and larger banks pulling ahead of the pack."

– Philipp Rickert, Partner at KPMG

"Consolidation in private banking has picked up pace – a trend that is set to continue."

– Christian Hintermann, Partner at KPMG

Insights and takeaways

  • The gap between the strongest and weakest banks widened further during the pandemic. Stronger banks have shown remarkable resilience – at the expense of the weaker institutions’ market share.
  • Strong banks reaped the benefits of their efforts in recent years to better control costs, optimize the client offering and increase net new money.
  • Weaker banks were hit by the drastic interest rate cuts in the US and declining commission income and suffered from a significant decline in net new money (NNM) and assets under management (AuM).
  • Managed wisely, ESG can open up new opportunities for growth. Some banks are ahead of the game and already offer sustainable products - but the potential of ESG is currently underexploited.