Financial Services
Our latest financial services industry knowledge and insights
Adapting to change in an evolving business environment: Trends and implications for Swiss Investment Managers
Introduction: Industry forces driving change
I. Building external and internal pressures
The Swiss investment management industry has faced several significant challenges in recent years.
- Macroeconomic pressures: Against a background of pressures on margins, high inflation, rising interest rates, and geopolitical instability, recent years have been some of the few since the late 1990s in which the bond and equity markets were bearish at the same time.
- Shifting client expectations: Besides a challenging economic environment, the level of professionalisation (and correspondingly expectations) among clients has increased, leading to higher scrutiny of asset managers’ performance and processes.1
- Increasing regulations: Increased regulation as a consequence of emerging investment solutions and technologies are putting further pressure on costs.2
We observe that Swiss asset managers are taking measures to improve their Target Operating Model (TOM) to address the above challenges. Offering more attractive investment solutions, having an operating model that allows for scalability, and controlling the cost base have become critical areas of focus.
Navigating tech-enabled transformation of core banking processes | Part 4: Safeguarding success through post-implementation monitoring
Post-implementation monitoring for a successful market go-live
The digital transformation of core banking processes is a monumental undertaking but, in the current market, it is no longer an option, it is a necessity. Organisation that embrace this shift to state-of-the-art digital systems unlock a future of enhanced customer experience and innovation, streamlined operations and improved agility (see Part 1 of this blog series[1]). Transformation journeys do not end, however, with the development of a new system (see Part 2[2]) or change management initiatives (see Part 3[3]), but rather with a successful roll-out and adoption. This is where the post-implementation monitoring steps in, playing a vital, yet often underestimated, role in solidifying and capitalising the benefits of the transformation to ensure long-term success. This last blog in the series explores Phase 6: Post-implementation monitoring and commercialisation (in dark blue in Figure 1) with a focus on lending process transformation as an example.
Are you ready to comply with the Swiss implementation of the crypto information exchange standard CARF?
As one of the first countries, Switzerland published its draft legislation for the domestic implementation of the OECD’s Crypto-Asset Reporting Framework (CARF). In particular, on 15 May 2024, the Swiss authorities launched a combined consultation on CARF and the amendments to the Common Reporting Standard (CRS 2.0), proposing respective additions and amendments to the Automatic Exchange of Information (AEI) Act and Ordinance. The consultation runs until 6 September 2024, and new and amended rules are anticipated to come into force on 1 January 2026. While this blog focuses on the Swiss CARF implementation, we will publish a second blog shortly focusing on CRS 2.0 and the more general aspects of the consultation.
With respect to CARF, the consultation documents require Reporting Crypto-Asset Service Providers (RCASPs) in Switzerland to comply with CARF and additionally set out Swiss-specific rights and obligations. The consultation materials should be read in conjunction with the CARF itself as the Swiss legislation does not repeat the definitions and rules already included in the CARF. For a general introduction into CARF with a focus on the scope of crypto service providers affected including practical examples, please refer to our article (co-authored with Pascal Michel form the Swiss Federal Tax Administration (SFTA)) that was published in the April edition of the Expert Focus. In this blog, we highlight the key observations from the draft legislation in relation to CARF:
Lombard Lending in Modern Banking: Key Insights from Deloitte’s Global Webinar
The landscape of Lombard lending is evolving rapidly, driven by emerging trends and shifting priorities within the financial sector as highlighted in our previous blog “Unlocking Value: Lombard Lending in Modern Banking – Navigating Challenges and Opportunities”. In a recent global webinar hosted by Deloitte, >150 experts and thought leaders from >40 leading financial institutions gathered to explore the future of Lombard lending and participated in an interactive survey, the results of which are presented in this blog. The discussion focused on three pivotal topics: sustainability, lending against digital currencies, and generative artificial intelligence (GenAI) in credit processes. This blog provides a summary of the webinar, highlighting the key takeaways from the discussion.
Navigating tech-enabled transformation of core banking processes| Part 3: The importance of non-IT change management
Ensuring a successful transformation through non-IT change management
Businesses are constantly challenged by new technologies, evolving customer demands and a volatile competitive landscape. Financial service institutions are equally embracing tech-enabled transformations to sustain their competitiveness[1]. However, the activities are not limited to the IT elements described in our previous blog in this series[2]. While Phase 5.1: IT development and Phase 5.2: Testing are key for the integration and development of technical solutions, these new systems are only as effective as the people who use them, internal/external adoption, and regulatory compliance. This is where change management allows the transformation to come to life in a coherent way. This blog explores Phase 5.3: Non-IT change management (in dark blue in Figure 1) with a focus on lending process transformation as an illustrative example.
Navigating tech-enabled transformation of core banking processes | Part 2: IT development and testing
In an environment where change is constant and customer expectations continually evolve, this blog series guides change leaders in the Financial Services sector through the intricacies of tech-enabled transformation of core banking processes, with a focus on lending.
In this second blog, we deep dive into the IT development and testing phases, highlighting their critical role in successful tech-enabled transformations. We explore common challenges that financial institutions face and, drawing from our extensive experience in Switzerland and internationally, we share lessons learned and success factors to ensure your bank achieves a successful tech-enabled transformation.
Navigating tech-enabled transformation of core banking processes | Part 1: Business execution readiness as a foundation for success
In an environment where change is constant and customer expectations are continually evolving, this blog series provides a valuable compass, guiding change leaders in the Financial Services sector through the intricacies of tech-enabled transformation of core banking processes with a focus on lending as an example.
In this blog, we explore business execution readiness in tech-enabled transformations and consider three common pitfalls that cause delays, setbacks, and ultimately additional costs for banks: (1) the absence of well-defined guidelines within the governance framework, (2) a suboptimal PMO set-up, and (3) failure to sufficiently consider non-IT change management activities.
Swiss taxation of cryptocurrencies – Do withholding tax and stamp duties apply?
Widespread adoption of cryptocurrencies and the increasing economic importance of digital assets increases the need to understand their respective tax implications. In Switzerland taxation of cryptocurrencies is usually based on existing tax laws. The Federal Tax Administration (FTA) has detailed its practice in a recently updated working paper.
Expanding on our previous blog post, this article provides a more in-depth analysis of withholding tax and stamp duty regulations regarding digital assets in Switzerland.
iBPM solutions – Optimising for the Future: Navigating iBPM Implementations
Intelligent Business Process Management (iBPM) has become a pivotal enabler of organizational transformation. Gartner assessed that 81% of organizations with iBPM capabilities have experienced noticeable, beneficial shifts in their operational frameworks.
Unlocking Value: Lombard Lending in Modern Banking - Navigating Challenges and Opportunities
In the past decade, Lombard lending was one of the fastest growing loan products. Deloitte pioneered with a global Lombard lending benchmarking series involving over 40 banks covering USD 450 billion and 22 booking centres, to consolidate current market trends. The ambition to continue this growth was clearly confirmed. Yet, while banks transition the product from niche to mainstream, challenges are being addressed around strategic alignment, operational efficiency as well as digital transformation to cater for the next generations of wealth.
The evolution of wealth management through AI
New global megatrends – an industry shift
Artificial intelligence is transforming the wealth management industry. AI enables banks to analyse large amounts of data and provide better investment decisions and personalised products and services: a modern, value-added, hybrid banking experience. To stay competitive, banks that manage wealth should integrate AI, prioritising data security, and combine the new technology with their traditional human advisory skills.