The Swiss financial sector is set to make significant advancements in digital finance, particularly in the areas of digital currencies and artificial intelligence (AI).
The Swiss Bankers Association (SBA) has made progress with initiatives related to book money tokens and stablecoins, including a proof of concept (PoC) aimed at implementing these innovations. The completion of the PoC for book money tokens is expected by mid-2025, along with the launch of multibanking offerings for private customers.
The SBA has also released an expert report on quantum computing, demonstrating their commitment to integrating cutting-edge technology into the financial landscape.
In addition to digital currencies, the regulatory landscape for AI in Switzerland is set to evolve. The Federal Council's interpretative document serves as a foundation for future discussions. The SBA plans to contribute to this dialogue with a GenAI interpretative report and a comprehensive analysis of stablecoins.
Close communication with regulatory authorities will be crucial for the industry as it navigates potential hurdles, ensuring that innovation continues to thrive within a robust regulatory framework.
The SBA's Education & Academy department has had a successful year, hosting seminars and webinars that attracted over 3,000 participants. These events provided valuable insights into current banking developments, enriched by practical examples from industry experts.
The Swiss Banking Academy plans to expand its offerings with new formats and topics to promote knowledge transfer within the sector. The Academy Newsletter will serve as a resource for keeping stakeholders informed about upcoming webinars and specialist seminars.
Sustainable finance has been a focus this year, with guidelines for financial service providers to address environmental, social, and governance (ESG) preferences and risks. These guidelines aim to prevent greenwashing in investment advice and asset management.
The SBA has also been active in discussions surrounding nature-related financial risks, with a new circular expected to outline future supervisory practices. The financial center initiative launched recently is anticipated to have long-term significance, as the industry prepares for continued momentum in regulatory development.
Ensuring banking stability is a priority for the Swiss banking sector, particularly in light of the Credit Suisse crisis. The Federal Council has proposed measures to enhance system stability while maintaining the competitiveness of the banking sector.
The SBA has advocated for these measures and engaged with policymakers and stakeholders to emphasize the need for a balanced approach. The revision of the Anti-Money Laundering Act is also a critical phase, with the SBA advocating for the inclusion of consultancy activities under the Act to mitigate reputational risks.
The Federal Council's stance against a financial transaction tax further highlights the importance of maintaining Switzerland's attractiveness as a financial hub.
In response to Basel III Final regulations, the SBA has revised its self-regulation on mortgage financing to align requirements across all property types. This change aims to streamline the regulatory framework and enhance the sector's resilience.
The SBA's efforts to prevent unwarranted market interventions reflect a commitment to maintaining a balanced regulatory environment. As the financial sector embraces technology-driven innovations, the SBA's supervisory expectations will play a pivotal role in guiding these developments.
Ongoing dialogue between the industry and regulatory authorities will be crucial in fostering an environment conducive to innovation while ensuring compliance with evolving standards.