Due to the sudden worsening of the pandemic situation, the event, unfortunately, could only be held in streaming. While we regret not having been able to hold the conference in attendance, especially considering that this year marks the 100th anniversary of the ABT, we are still happy with the strong interest shown in the event, an interest that has resisted the many changes imposed by the situation. The peak of 500 connected people and the important media coverage show that the future of the financial center remains a priority issue for Ticino.
This year's symposium was set up with the idea of not focusing on a specific theme but broadening the discussion by touching on multiple current issues for the square. An approach that materialized with the choice of panel speakers, all of the highest rank: Federal Councilor Ignazio Cassis, UBS Group CEO Sergio P. Ermotti, President of the Swiss National Bank Thomas J. Jordan, State Councilor Christian Vitta and ABT President Alberto Petruzzella.
The importance of the framework conditions
In his role as President of the Swiss National Bank, Thomas Jordan has an overview of the national economy and for this reason in his speech he repeatedly stressed the importance of having optimal framework conditions. Switzerland starts off with good foundations, first and foremost a solid currency: Jordan recalled that since the outbreak of the First World War no other currency has retained its value like the Swiss franc. Obviously, there are downsides such as the excessive appreciation of the franc in times of uncertainty, a situation that the SNB has had to remedy with targeted measures such as the introduction of negative interest rates.
The political and institutional context also plays a significant role. Jordan praised our system but issued a warning: it is necessary to avoid creating administrative obstacles that burden financial activities, citing in particular the negotiation tax and the withholding tax. The President of the SNB also focused on market access, underlining how in a globalized context it is necessary to loosen restrictions.
Jordan concluded his speech by stating that only close collaboration between the different political and economic actors can guarantee an effective economic system, taking as a positive example the management of the economic crisis caused by the pandemic. The collaboration between the Federal Council, the banks and the SNB allowed easy access to credit, safeguarding thousands of companies that would otherwise have risked a liquidity crisis.
The situation has remained under control, Jordan concluded, also because in recent years the large global banks have significantly increased their capital endowments, reduced risk positions and adopted important organizational measures for crisis management. Domestic-oriented banks have also shown overall good resilience.
A difficult phase
The topics addressed during the panel are numerous: the starting point for the discussion was the pandemic, which has brought about numerous changes in the way of working. ABT President Alberto Petruzzella did not hide the difficulties that the market is facing: the last ten years have been complicated, the banks have had to reduce costs and this unfortunately also involved the staff. With regard to the pandemic crisis, Federal Councilor Ignazio Cassis and UBS CEO Sergio Ermotti underlined how Covid credits have not only had an economic impact but also served from a psychological point of view. In fact, many entrepreneurs who have applied for these special credits, despite often not using them, have felt calmer in facing these months of uncertainty. Although all the speakers reiterated how difficult it is to make predictions, it is clear that sooner or later this particular moment will end and we will have to look to the future. A future that promises to be full of challenges, from digitization to relations with the European Union. Access to the Italian market, for example, as Jordan has already pointed out, is of fundamental importance for the market. Concept reaffirmed also by the Councilor of State Christian Vitta who, together with the Banking Association, is committed to pursuing the dossier with Federal Councilor Ueli Maurer and Secretary of State Daniela Stoffel.
Innovation as a vector of growth
According to Vitta, it is also necessary to accompany the banking sector in its transformation phase, in particular the technological one. Investing in digitization is essential: Sergio Ermotti, CEO of UBS Group, pointed out that a crisis like the one we are experiencing would have been unmanageable with the technologies of ten years ago. This is not only true for the financial sector, but for the whole of society in general (just think of distance learning, online shopping ..). The acceleration of digitization processes was perhaps the only positive side of the pandemic, which led, for example, to an important use of home working in the banking sector. Nevertheless, even this modality has limits since, especially in the field of consultancy, the personal relationship with the client is irreplaceable. The financial center must therefore focus on new technologies, but without neglecting human capital. Not only that: it is also appropriate to identify the right tools to be developed: if the blockchain can be a useful tool, there are still many doubts about cryptocurrencies. Innovation means the creation of new jobs, but also the disappearance of some functions. For this reason, the role of continuous training remains a priority, allowing us to remain competitive. The responsibility, explained Ermotti, lies not only with the state and the employer but also with the employee, who must be willing to invest in himself.
Challenges and opportunities
In conclusion, the speakers underlined how the challenges facing the square are numerous and complex, often linked to the evolution of the international context. Swiss values, centered on collaboration, skills and seriousness, allow us to face the future with confidence. The cent of the Ticino Banking Association, in its small way, is a stimulus to reflect on how in these hundred years it has been possible to resist numerous shocks, adapting to global changes and managing crisis situations.
