The Swiss financial sector faced a major crisis in March 2023 when Credit Suisse was on the verge of collapse.
The Federal Council worked urgently to create a rescue plan and ultimately reached a deal with UBS, the largest bank in Switzerland. The situation was critical, and officials worked tirelessly to stabilize the financial sector and prevent broader economic consequences.
On March 18, at 8:10 PM, Federal Councillor Karin Keller-Sutter announced via the encrypted messaging service Threema that UBS had agreed to the deal. Despite resistance from Credit Suisse's leadership, the Federal Council emphasized the importance of the situation and communicated directly with Credit Suisse's Chairman.
The use of Threema for crisis management highlighted the role of technology in governance during high-stakes situations. The encrypted chat service allowed for real-time communication among Federal Councillors, but also raised concerns about security and appropriateness. Messages continued to flow throughout the evening, keeping all members informed.
The use of Threema was deemed appropriate given the circumstances, allowing for a more agile response to the crisis. The use of mobile technology for governance is not unique to Switzerland, as former German Chancellor Angela Merkel also relied on text messaging for state affairs. In Switzerland, Federal Councillors have specially designed devices that limit functionality for security reasons. However, Threema can be used for confidential discussions, while sensitive matters are expected to be handled in person without mobile devices.
The events surrounding Credit Suisse's downfall serve as a case study for crisis management in the financial sector. The reliance on technology for communication during this crisis highlights the evolving nature of governance in the digital age. Lessons learned from this episode may influence future regulatory frameworks and crisis management strategies, with a focus on balancing technology for rapid communication and the security of sensitive information.