With Reto Bossard, Partner and Head of Abacus, the existing management team of OBT AG will be complemented by another member as of October 1. In his new role, Reto Bossard will strengthen the entire OBT IT division and in particular the Abacus division, thus contributing to further growth. OBT AG is one of the six largest companies in Switzerland in the fields of fiduciary services, auditing, consulting and IT solutions. Its client focus is on SMEs, although it also provides competent and personal advice to listed companies, public corporations, foundations and associations.

Established as an important Abacus distribution partner

Reto Bossard started his career at OBT as a consultant back in 2000 and got to know the Abacus business in all its facets. From 2009, he led one of the two teams at the Zurich location and took over the Abacus division management of the location in 2016. Since this year, he has been responsible for the Abacus area of all OBT locations. Together with his team, Bossard has led the division to extraordinary success and has been instrumental in making OBT one of the most important Abacus sales partners, the company says. He is also actively shaping the (digital) transformation of the entire OBT AG.

IT team as an important pillar

Due to his many years with the company and his extensive experience within the OBT IT division, but also due to his networking in the market and his proximity to customers, Reto Bossard knows the opportunities and challenges of the industry, the statement continues. With his election as a member of the Executive Board, OBT emphasizes the importance of a strong IT team as well as the Abacus division as a valuable pillar of OBT's services. The company is convinced that the new member of the Executive Board will play a decisive role in shaping OBT's future.

For more information www.obt.ch

On September 17, 2021, the Swiss Management Run will take place, an exclusive platform for sports and exchange with up to 250 Swiss managers. In the run-up to the Run, the Fit for Management symposium offers exciting presentations and discussions. Guest speaker André Lüthi from the Globetrotter Group is already taking our questions.

Mr. Lüthi, you yourself are considered a globetrotter. What travel experience has had the greatest impact on you in your professional life?
André Lüthi: I was shaped by the realization of how to deal with other people. When you travel, you meet other cultures, other religions, other world views - you learn tolerance and respect. In our management world, I often see shortcomings here. We prefer to follow Excel lists and forget about the human factor. I learned that a lot on my travels. The most important learning, however, was to trust people. I think the most important leadership task is to have the right person in the right place and to give them freedom. That means trusting

You say managers should travel more and get out of the office. Why?
André Lüthi: When you travel - and I'm not talking about a vacation in a deck chair - you get to know your limits. Many things turn out differently than planned. You have to think and act flexibly. You learn - of necessity - to trust people. Because if you are traveling in India in a bus that has "slightly broken" brakes, is completely outdated and hopelessly overcrowded, then you will have to trust the driver. Respecting other people and knowing your own limits: These are the qualities that make a good manager.

Now the pandemic has taken away our freedoms and mobility in many ways. What lessons do you draw from Corona?
André Lüthi: It's the biggest crisis the world's tourism has ever experienced. There is a light at the end of the tunnel, although this tunnel is damn long. Since March 14, 2020, I have often been pushed to my limits. We knew we were coming out of the storm with our ship damaged and with losses, but we know we're not capsizing. We had 78 percent losses in 2020 and had to cut from 450 employees to 280 today. There were many debates - including emotional ones - with my 13 CEOs. It took a lot out of all of us. But similar to traveling, I knew that somehow it would continue. We all grew from it.

What was your lifeline?
André Lüthi: In Switzerland, we were really lucky. What other country has paid out covid aid, paid compensation and initiated hardship programs so quickly and unbureaucratically? When I look at what is currently happening in Peru, Vietnam and the like, where people have nothing and receive no support from the state, then we are here in the promised land. We have it damn good in Switzerland and should finally stop complaining and also say thank you in federal Bern.

Keyword home office. How does a manager deal responsibly with his employees in these times?
André Lüthi: Apart from the official requirements that have to be met, there is no substitute for personal contact. I am a clear advocate of a return to the office. But not because of the office, but because of the people. As a manager, you have to create an environment that employees like to come back to - namely the team. Of course, thanks to Corona, there are more flexible working options. Where it makes sense, I'm completely in favor of it. But there has to be a return to people.

What do you think the "new normal" will look like? Will there be a return to pre-Corona? What remains, what changes?
André Lüthi: Before Corona, we partly had the problem of overtourism. Now the opposite has occurred. I would be satisfied if there was a middle ground. My appeal is: travel more consciously! Travel should become a school of life, a personality development. Therefore it cannot take place at dumping prices. Therefore away from ten cheap short trips over the weekend to selected and for it longer journeys, in which one gets to know country and people. Employers would also have to become more flexible here. I hope that the attitude towards this will change somewhat after Corona.

More info at: https://www.management-run.ch/

The Corona pandemic has hit young people hard and made their entry into the labor market more difficult. While the Swiss VET/PET system has proven to be resistant to the crisis due to the high flexibility of the workplace, various studies also show the downsides of the home office, especially for apprentices. Young people have suffered significantly more than other age groups as a result of the measures taken to contain the Corona pandemic. It is true that most professionals have had to adapt their way of working and interacting within a very short time. However, the challenges are even greater for first-year workers who have had little opportunity to gain experience in the labor market and establish routines. In most cases, they have not been adequately prepared for remote working. Vocational and practical trainers also perceived this form of remote training as particularly difficult.

Working in a home office also for apprentices?

A new survey conducted by the Swiss Commercial Association in June 2021 among more than 700 vocational and practical trainers in the commercial-business sector confirms the difficulties mentioned. Thus, 66% of the vocational and practical instructors surveyed perceived the supervision of learners in the home office in connection with Covid-19 as a challenge. Another 71% reported difficulties in performing their role as an educator. In addition, more than half of all vocational and practical instructors reported motivation problems among learners. In this context, the Swiss Commercial Association received many inquiries: What is the current legal basis? What do trainees need to know in order to work independently and efficiently in a home office? How can trainers ensure quality knowledge transfer at a distance?

Assuming that home office will continue to have a permanent place in office professions in the future, the Swiss Commercial Association is of the opinion that there is a need for action: "Apprentices and vocational and practical trainers must be better and more systematically prepared for the work situation of home office. In order to protect trainees, rules are needed that allow home office work during training, but also limit it. In any case, the mental health of the apprentices must be taken care of," emphasizes Kathrin Ziltener, Head of Basic Education & Youth Counseling at the Swiss Commercial Association.

Remote working is becoming commonplace in the commercial sector

It can be assumed that the working reality of many professions, especially the commercial professions, will continue to be characterized by remote work in the future. "Learners should also learn about this way of working in their training and learn the right strategies as well as how to handle it correctly," Ziltener continues. It is also important that apprentices are supported in obtaining the necessary equipment to perform home office work. However, home office during apprenticeship must also be limited in time: In its new fact sheet for vocational and practical trainers, the Swiss Commercial Association therefore suggests a guideline of one day per week. Young people are more dependent on exchange, both with their peers and with their trainers, than adults. Ziltener confirms: "It takes a lot of sensitivity and attention on the part of the vocational and practical trainers for the needs and health protection of the learners. The lack of exchanges and the feeling of being on your own in the home office have a strong impact on the mental health of young people."

Demand to the Federal Council

Accordingly, the Swiss Commercial Association calls on the Federal Council to report on whether, in view of the changing work reality of apprenticeship companies, an adjustment of the Labor Act as well as the corresponding ordinances is in order; in particular under Art. 1 lit. of the Ordinance of the EAER on Hazardous Work for Young People over 15. Special attention should be paid to apprentices working in industries and companies where flexible forms of work are maintained or promoted even after the Corona pandemic. This is because in many sectors, special protection applies to young people under the age of 18 with regard to working hours, overtime, and from work that exceeds the physical and mental capacity of young people. In order to be able to ensure and check this protection in the home office as well, new competencies and improved protection of young people at work are needed. Daniel Jositsch, President of the Swiss Commercial Association, will submit a corresponding interpellation to parliament during the upcoming 2021 fall session.

Source: Swiss Commercial Association

The home office obligation due to the Corona pandemic ended in Switzerland at the end of June. Even though telecommuting is still recommended, it basically opens up the option of returning to the office. But how exactly do companies want to enable on-site working? The latest labor market study by Robert Half, a specialist provider of talent solutions, shows: Nearly half of companies (42 %) currently do not require employees to be present in the office.

Home office remains even after the pandemic

"The return to the office is happening very cautiously. With the fourth wave of Corona starting up, companies are keeping the number of employees in the office small and preferring to rely on hybrid work models," says Eva Mahoney, associate director at Robert Half.

More than half (58 %) of the companies in the labor market survey stated that more than 30 % of the workforce currently work exclusively from home. If nearly one in two companies (42 %) have their way, home office will remain an important part of the work culture in the future. They think that even after the pandemic, more than a third of their employees will work from home.

Companies plan with smaller office spaces

Instead of returning to the office entirely, 44 % of companies are thinking about reducing office space and 41 % want to reconsider office location. In each case, around one in three companies would like to move to new premises to adapt to changing needs or are considering closing individual offices.

"The pandemic has brought about major changes at companies. While home office was more of a desired topic for job candidates before, it is now the companies themselves that are pushing this form of working. More and more employers are asking themselves not so much if, but how and according to what principles they will enable hybrid working in the future," says Mahoney.

Source: Robert Half

Cybercrime is considered one of the biggest operational risks for SMEs. Protecting themselves effectively against these risks should be the goal of every company. After all, cyber attacks are becoming more frequent and more sophisticated all the time.

Seal of approval for cyber security

Companies that know their IT security risks and take sufficient preventive measures can benefit from the Swiss Association for the Cybersecurity Seal of Approval with the cyber-safe certificate. "Anyone who has been awarded the seal of approval can be sure that their IT security is state of the art and that their internal organization is equipped to deal with cyber threats," says Christophe Hauert, founding member of cyber-safe.ch.

Benefit from the cyber-safe certificate

It is also extremely important to the insurance company Helvetia to promote cyber security throughout Switzerland. On its website, Helvetia already offers some free support in the form of security training, a short cyber security check and a guide on back-up strategy to increase the IT security of SMEs or raise awareness on this topic. Through its collaboration with cyber-safe.ch, Helvetia grants companies that are cyber-safe.ch certified a quality discount of 20 percent on their cyber insurance. In return, customers with Helvetia cyber insurance benefit from a partner discount of 10 percent when they purchase the cyber-safe seal of approval.

Cyber insurance with fast support

"Cyber insurance is an important addition to comprehensive cyber security management. Because even good preventive security measures never guarantee complete protection against attacks in the rapidly changing digital world," knows Tobias Seitz, cyber insurance specialist at Helvetia. In the event of a claim, cyber insurance offers not only financial protection, but also professional and rapid support from specialized partner companies.

Source: Helvetia Insurances

It was postponed several times, but has finally been held: On September 2, around 200 guests gathered in the campus hall of the University of Applied Sciences Northwestern Switzerland in Brugg/Windisch. There was almost a familiar networking atmosphere again, as one knew it from "pre-Corona times".

No ideological decisions

"Upheaval in business and society" was the motto of the event. According to KMU-Swiss CEO Armin Baumann, this theme was already set for 2019. Probably no one could have expected that it had lost none of its topicality to date - on the contrary. In his opening address, Armin Baumann regretted that egoism and narcissism had increased. But - and this is the positive side of the pandemic - there was also a lot of help for self-help.

The conference topic as the first speaker was classified by Werner van Gent, known as a long-time Southeastern Europe correspondent for Swiss television. He has experienced many upheavals, personally or in his work as a journalist. Again and again, he observes that problems are either simply denied at first or then approached with solution strategies from the past - even if these were even at the beginning of a problem. And too often, he says, ideologies or beliefs are at play. "Decisions must be made on the basis of knowledge, not ideologies," says Werner van Gent, pleading for pragmatic solutions: "Do what you need to do." This applies to companies as well as to global problems such as climate change.

Digitization and communication

After these remarks, it was Daniel Fiechter, CIO of Stobag and lecturer at the Fernfachhochschule Schweiz, who addressed another topic that is currently causing a lot of upheaval - especially in business: the digital transformation. Specifically, he explored the question of whether this would eventually lead to IT departments in companies becoming larger than production departments. In his company, this has not yet been the case. But he did not deny that every project is now an IT project. His recommendation to companies: Not to create a separate digital strategy, but to consider digitization as an elementary part of the overall corporate strategy. "IT is becoming a key competence for strategy implementation," Fiechter said.

Atilla Vuran's presentation dealt with communication and leadership. He showed that communication often fails because, depending on the situation, there is a lack of receptiveness on the part of the other person or because the person communicating lacks authorization. This leads to the following four quadrants: "Interest" (authorization low, receptiveness high), "Ignorance" (authorization low, receptiveness low), "Dominance" (authorization high, receptiveness low) or "Development" (authorization high, receptiveness high). This model makes it relatively easy for managers to assess when and why communication works - or doesn't work.

Britta Pukall, founder, CEO and member of the board of directors of milani design, then took the audience on a quest for freedom of thought. This is an important prerequisite for creativity. But too much knowledge prevents people from being creative. It is much more important to strive for wisdom instead of knowledge. Together with relaxation and awareness, this is the source of creativity.

The presentation by Rolf Härdi, CTIO at Deutsche Bahn, once again focused on digitization. He explained the dimensions that the digital transformation of a large company like DB is taking on and the factors that need to be taken into account. On the one hand, there is the desire for smart mobility with ever faster information times, and on the other, an infrastructure with long life cycles. One part of Deutsche Bahn's digitization efforts is the development of digital twins, i.e., digital images of infrastructure and rolling stock, which allows the simulation of processes and predictive maintenance. This is also a means of ensuring fewer delays, which have contributed to the rather battered reputation of the railroads in Germany.

Sustainability at the SME Swiss Symposium 2021

The last block of presentations was given by Beni Huggel, former FC Basel footballer and currently a football expert on Swiss television, and Rafael Waber, Managing Director of SwissShrimp. Beni Huggel traced his career and, with the help of many anecdotes, provided examples of how even major upheavals can be overcome with the right personal attitudes. Rafael Waber, on the other hand, focused his presentation on the topic of "Awareness influences the business model". After all, SwissShrimp's business model is to combine enjoyment, Swiss quality and sustainability. And KMU Swiss demonstrated that sustainable business does not only have to take place in Switzerland by presenting a check for 3,000 Swiss francs to the Business Professionals Network, which has been promoting small businesses in developing and emerging countries since 1999.

If there is one conclusion to be drawn from the KMU Swiss Symposium 2021, it is this: Upheavals affect us all, both on a large and small scale. This makes networking and cooperation among companies all the more important - and fortunately, after a long break, such events offer good opportunities for this again.

More information on upcoming events: www.kmuswiss.ch

With the mobile platform from the manufacturer Beekeeper, employees in service, sales and production have access to all tools and communication channels in a central app. But is it even worth installing such a collaboration app? Beekeeper has had the return on investment (ROI) confirmed by a study.

70 percent fewer absences thanks to collaboration app

One thing in advance: The acquisition of a collaboration app probably costs less than absences due to accidents and employee illness. Because according to the According to the FOPH, 75 percent of all absences in Switzerland are due to accidents or illness.. In 2020, things were different, with the largest item being short-time work. 75 percent means one and a half to two weeks of absence per year per employee.

In Switzerland, one day of absence costs the employer 600 to 1000 francs per day. Particularly in sectors such as construction or healthcare, where occupational accidents and sickness-related absences are commonplace, consistent employee involvement can 70 percent of absences can be avoided, as Beekeeper's research has now shown. This is possible because the safety information actually reaches the employees - because collaboration apps are intuitive, interactive and, in contrast to info sheets or information on the intranet, are heeded much more often.

Appreciation improves working atmosphere

Experience has shown that employee involvement and feedback options or surveys in the tool also give employees a feeling of appreciation and, quite incidentally, show management potential for improvement. Employee satisfaction increases enormously, and staff turnover decreases by up to 40 percent the study continues.

The communication features of employee apps were a big value-add for many companies during Corona, but it was the combination of digitizing processes and digital communication that brought huge savings, the study concluded.

More than a digital coffee party

Executives who expect more from an app than just a digital coffee chat must nevertheless think carefully about which digital tools they invest in. The current survey on ROI thanks to digital tools among Beekeeper's customers shows: it takes more than just a chat:

1. Simply publishing information on a mobile intranet is not enough to achieve a high ROI. To profit from the shift to a digital workplace, it must be used as an operational tool. Top-down content then benefits from a large and active readership, which improves operational agility and promotes employee engagement.
2. Operational utility is the secret ingredient that amplifies the impact of other app features: digital operations, for example, promote employee engagement, and employee engagement promotes safety.
3. A mobile app for commercial employees can indeed be the most impactful investment a company can make right now, provided the needs are met by the right solution and the technology is implemented properly.

Here's how a collaboration app brings savings

• It increases productivity for commercial teams and admin staff alike
• Teams become more agile
• Costly errors and hazards are reduced
• Physical processes, such as waiting in line to clock in, are eliminated
• Paper and printing costs are reduced
• Output of daily production is increased
• Employee retention and engagement are improved (thereby reducing costly employee turnover)

So, to sum up, it can be said that a digital solution for collaboration can bring huge savings within the company, provided that various points such as the selection process of tools on the market, the definition of the areas of use, interactivity and intuitiveness, and the careful introduction of the app into the company culture are taken into account.

Source: Beekeeper

At the moment the 4-day week study from Iceland the round in the media:

• Die Zeit: "The four-day week could also work in Germany".
• Der Spiegel: "Field experiment on the four-day week - Iceland cuts working hours, productivity rises".
• t3n: "4-day week in Iceland: 5 facts critics must come to terms with".
• Focus: "Soon the four-day week? Iceland drastically reduces working hours - experiment shows resounding success".
• WiWo: "4-day week makes employees more productive and happier".
• SRF: "Iceland switches to the four-day week".

The unanimous verdict: a four-day workweek is better, for people and the economy. The online newspaper Perspective Daily asks in its article (https://perspective-daily.de/article/1762/TsKtvxjo) on the topic: Would the 4-day week be a good solution for you? There are three answers to choose from - Yes, No, I already work four days. The first option currently gets seventy-four, the second six, and the third eighteen percent of the votes cast. I belong to the absolute minority who voted "No." This is because I consider the experiment that has been carried out to be a fraud against the workers.

The big 4 days a week scam

Many of the digitizers in the business world make this, quite crude, announcement to their customers at the beginning of the project: "One thing must be clear to them, if they have a crappy process today and they digitize it, they simply have a crappy digital process." I feel the same way about the glorification of a reduced work week. After all, if we glorify the shortening of poor working conditions, nothing has changed in the circumstances. As the study from Iceland points out, this is true. Because in essence, the reduction in working hours achieved above all that people can better endure their unsatisfactory work. This is achieved by giving them more time to compensate for their frustration.

The author of the study, Jack Kellam, says in an interview with Time: "The subjects were able to decide for themselves the amount of time they now had to work less. It doesn't matter if someone sits in front of the computer and gambles or goes for a walk in the woods during that time." What makes people happy, according to Kellam, is self-determination. He underscores this by saying, "What's most important is that participants had a high degree of autonomy in how they managed their work time."

What it is really about

The study offers a reduction in the working week as a solution. But a closer look reveals something else. People lack self-efficacy in their work. We want to have an influence. We want to help shape things. We want to let thirteen be even. The way most companies are organized today prevents the vast majority of employees from doing just that. And in a systematized way. That's why it takes more than just improving the existing structures. We are ready for a system change. We need an adaptive organizational design that professionalizes independent design by employees. Conventional organizational structures are hardly adapted to these requirements. Formal command-and-control structures thwart the ability of people to self-manage and adapt to changing economic, technological and market conditions.

If one's own organization is to become adaptive, this therefore challenges traditional management habits above all. For success, it is necessary to leave the silos. And more. No one can continue to rely on predefined plans. Because by the time they come to fruition, a different solution has long been needed. In this mixed situation, the key is to allow autonomy. But only that which ultimately acts in the interests of the organization. This is achieved through three central mechanisms of action:

1. Distributing leadership tasks/responsibilities throughout the company instead of limiting them to formal roles.
2. Transition from management to self-management
3. Transfer to cross-functional autonomous teams

It's not about how long someone works

In companies that consistently follow this path, it turns out that for many, the 4-day week or even shorter working hours with full wage compensation are not an issue. It's not at all about how long someone works. What matters is what effect he/she achieves with his/her work. Incidentally, this applies just as much to entrepreneurs as it does to their employees. For example, the owners of Teledata IT-Lösungen GmbH, Peter Wassmuth and Robin Aigner, who successfully follow this path with their company, regularly emphasize: "One of our greatest successes is that we no longer have a fifty or sixty-hour week, but can manage wonderfully with thirty to forty." On kununu, one employee's reaction to the adaptive working conditions at Teledata reads like this: "Just nice to have Sundays to look forward to Mondays" (https://www.kununu.com/de/teledata-it-loesungen/bewertung/2a55268d-9e4f-44cf-8359-0c1268b96bbd).

And so I ask. "Should we really continue to cheat ourselves with four-day weeks as a promise of salvation when it is within our creative power to work together in a meaningful way?" I know: "We can do better!"

To the author:
Gebhard Borck is the transformation catalyst. With his tried-and-tested thinking tools, he solves concrete, urgent problems. And Borck is more than a consultant: Instead of building castles in the air, he uncovers and speaks plainly. He is a speaker, best-selling author, sparring partner and is regarded as the inventor of genuine fairness in business. https://www.gebhardborck.de

Book tip: Gebhard Bock: The Self-Efficacious Organization. The playbook for intelligent collaboration. 1st edition BusinessVillage 2020, 296 pages, ISBN 978-3-86980-486-6.

In the age of the digital revolution, companies are equipping their organizations for future success against the clock. Strategy decisions today are largely influenced by buzzwords such as digital transformation, risk management, process and enterprise architecture. According to the motto "mastering digital transformation together", BOC Switzerland - part of the BOC Group - , the Swiss Impact Day 2021, an event for Swiss digital business leaders. The event will take place live on September 16, 2021 at the Sheraton Zurich Hotel or virtually.

At the Swiss Impact Day, experts from Swiss companies exchange views on topics relating to business process and IT architecture management as well as governance, risk & compliance. What will successful business architectures of the future look like? Which trends and changes will determine business management in the future? How are other Swiss companies tackling the challenges of the future? Participants together with the speakers will address these questions. The BOC brings an ensemble such as, Tim Lehrig from Emmi Schweiz AG, Felix Bindschedler from On AG, Elias Schneuwly from Ringier AG as well as Andreas Christen and Daniel Plüss from Basler Kantonalbank on stage.

"The event brings together a community of like-minded digital business enthusiasts and is a source of inspiration for strategy, organization and innovation," says BOC Switzerland marketing and communications manager Sandro Gerussi. The event is the Swiss edition and part of the Global Business Impact Summit's 2021, which will take place from September 7 to 21. Participation in the Swiss Impact Day is free of charge. The event can be attended live, online or on-demand.

You can register here: Swiss Impact Day 2021 - www.boc-group.com

In the annual "Clarity on Performance of Swiss Private Banks" study, KPMG and the University of St. Gallen (HSG) examined a total of 83 private banks operating in Switzerland and assessed the performance of these institutions as well as key industry trends. In addition, 250 statements on the situation of the banks during the pandemic were scrutinized and 27 executives - mainly CEOs - from the private banking sector were interviewed.

Challenging environment

The environment for the private banking sector remains challenging, even though many institutions initially came through the corona crisis well, concludes the private banking study by KPMG and the HSG. According to the study, small private banks with assets under management of less than CHF 5 billion are particularly affected. Their turnover slumped by around 13 percent in 2020. Low interest rates are the main factor depressing earnings. At the same time, small private banks are increasingly reaching their limits in terms of digitalization and due to the increasing density of regulation. As a result, and driven by high margin pressure and the need for economies of scale, consolidation is continuing.

Private banking sector continues to shrink

This is reflected not least in the sharp increase in M&A activity since the first lockdown: eight consolidation deals were announced between July 2020 and July 2021. At the same time, the number of private banks operating in Switzerland has decreased from 101 to 99 in 2020. Currently, there are still 96 private banks in Switzerland - and after the completion of the transactions already announced, there will likely be 93. "In our view, there is still a great need for consolidation, especially among smaller and medium-sized private banks," said Christian Hintermann, banking expert and partner at KPMG Switzerland. "We therefore expect transaction activity to remain high over the next twelve months. In addition, we expect the number of private banks in the Swiss market to decrease by another quarter in the medium term." Over the past ten years, the number of institutions in Switzerland has already declined by 40 percent (158 private banks in 2011).

Gap between large and small private banks widens further

What is striking in the private banking sector is that the gap between large and small banks widened even further last year: Large institutions performed better than medium and small banks in 2020 and proved more resilient to the challenges of the pandemic. In fact, they were even able to slightly increase their 2020 sales (+0.8%) despite difficult circumstances, while medium-sized private banks suffered a sales decline of 7.2% and small institutions even suffered a sales slump of 12.8%.

A look at the cost/income ratio also clearly shows the differences: while the large private banks were even able to improve it slightly (74%), the cost/income ratio at the small private banks rose by 10 percentage points to 95%, the highest value in the last five years. For medium-sized private banks, the cost/income ratio is 84%, around two percentage points higher than in the previous year. Across all private banks operating in Switzerland, the 2020 cost/income ratio (median) rose 6 percentage points to a record high of 85.9%. To be sure, institutions were able to cut costs in travel and marketing. However, the lower operating expenses were unable to offset the decline in income.

"The solid performance of the strong banks in the midst of difficult market and pandemic challenges is a testament to the investments they have made in recent years to strengthen their resilience. They have achieved this by consistently investing in customer acquisition and efficiency," explains Philipp Rickert, Head of Financial Services at KPMG Switzerland. This is also reflected in the institutions' return on equity: While large private banks have a median return on equity of 6.2%, the median for small banks is 1.1%. Overall, the average return on equity (median) was 4.1%, which represents a slight deterioration compared with the previous year (4.2%).

Assets under management and net new money increase

Assets under management increased by 3% to just under CHF 2,943 billion across the private banking sector in 2020. This was mainly due to strong growth in net new money of CHF 94.5 billion (+3.3%) last year, with large private banks in particular attracting a lot of new money. For example, around 95% of net new money was generated by seven of the largest private banks. Overall, 48 banks reported positive net new money and 35 banks reported negative net new money. "The considerable inflow of new money over the past two years is an extremely encouraging sign for the industry and for Switzerland as a leading financial center in private banking," Rickert said. Mergers and acquisitions, on the other hand, did not have a significant impact on private banks' assets under management last year, as some of the announced transactions have not been or will not be completed until 2021.

Only minor cost savings for office space

The 27 executives surveyed last year - mainly CEOs - expected at the time that home offices would benefit banks in terms of office costs and other efficiencies. But as things stand, only limited reductions in office space expenses are evident. Cost savings in the 2020 pandemic year were modest at 0.9%. In contrast, the decrease in travel and marketing expenses led to larger cost savings at most banks, reducing general and administrative expenses by 9% (CHF 388 million).

Executives last year assumed that loan defaults would result in only minor credit losses in 2020. It is true that the industry's credit losses (includes lombard, mortgage and other credit losses) increased more than fourfold year-on-year (from CHF 126 million to CHF 597 million). However, a large part of this is attributable to one bank. Overall, the number of private banks reporting an increase in credit losses in 2020 remained relatively stable at 31. In the previous year, there were still 28 private banks reporting increased credit losses.

Digitization and ESG gain in importance

As the private bank study also shows, private banks want to devote more attention to topics other than the Corona crisis. This includes the entire ESG (Environmental, Social and Governance) area, which is becoming increasingly relevant. Thus, private banks are evolving in the ESG area and adapting their offerings. However, there are big differences between banks. While a majority of 60% of the institutions have ESG listed on their website. Only about 20 financial institutions had it evident in their annual reports or on their websites that ESG is a key strategic priority. "Banks should leverage Switzerland's strong track record of ESG pioneering and investing to attract new generations of clients for whom ESG is a key concern," Rickert said.

The topic of digitization continues to gain in importance. For example, an increase of 327% in keywords relating to digitization has been observed in banks' annual reports over the past ten years. Despite this, private banks made lower IT investments in 2020 and recorded lower IT-related costs than in the previous year. "The lower IT spending is mainly due to banks' reluctance to invest in the crisis year. We expect investments in IT to pick up again, as digital transformation will remain a key issue," explains Hintermann.

Methodology

At Selfrag, one of the principles is: "We only have one planet, we are committed to contributing to its preservation." Under this motto, the company has become a leader in the industrialization of systems for the recovery of solids by means of electrodynamic fragmentation. In this process, mixed materials such as electronic scrap, slag or rock are separated into their individual components by high-voltage pulses. This environmentally friendly method is used, for example, in the cement industry, in mining, and in the processing and recycling of residues from refuse incineration. With its patented technology, the company is able to reduce the volume of municipal solid waste slag by half and return valuable materials such as metals and minerals to the economic cycle. The process makes a substantial contribution to reducing CO2 emissions and helps close the gap to a functioning circular economy.

Further develop potentials

Now Selfrag will further develop the potential of this method in the future as part of a service and research collaboration with the Institute for Biomass and Resource Efficiency at the FHNW University of Applied Sciences. This institute conducts research and development in the fields of alternative fuels, combustion and resource efficiency. It is part of the national competence center for energy research "SCCER Biosweet" and is jointly supported by the University of Applied Sciences Northwestern Switzerland (FHNW) and the Paul Scherrer Institute (PSI). Joint research projects on the material recycling of mineral and metallic waste are planned, according to the statement.

Strengthening the circular economy with research collaboration

"With our technology, valuable raw materials are extracted from waste slag for recycling. In cooperation with the School of Engineering of the University of Applied Sciences Northwestern Switzerland FHNW, we want to further develop this environmentally friendly waste recycling and thus strengthen the circular economy," explains Anton Affentranger, President of the Board of Selfrag. "We accompany companies with our competences in the field of circular economy in the development of a technical innovation until it is ready for the market", explains Petar Mandaliev from the Institute for Biomass and Resource Efficiency FHNW. "Selfrag's sustainable goals coincide with the values of our university."

Sources and further information: Selfrag AG, FHNW