A new era has begun for the Ticino financial center, as the regulatory framework within which it operates has changed radically in recent years, with the fall of banking secrecy for foreign customers. How do you assess the current situation? Will the square have the ability to remain competitive in this new environment?
«Expert estimates indicate that wealth management activity in Switzerland is still growing, in the order of between two and three percent per year. On the other hand, in an international comparison, the Swiss financial center, and consequently Ticino, continues to boast favorable framework conditions: political, social and monetary stability, reliability, professionalism and a large range of products and services. All this in a context of growing uncertainty in Europe and in the world. However, we cannot rest on our laurels. We have to prepare for the future. Above all, the generation of digital natives wants to have access to banking services 24 hours a day, via computer, tablet or mobile phone, wherever they are. Without detracting from the personal relationship between client and consultant, which will continue to remain important, today we need to invest a lot in digitization - and we are doing it - in order to make access to information and banking operations simple, transparent and secure. In the future too, continuous training of collaborators will be more important than ever ».
In recent years there has been a reduction in the number of people active in Ticino banks. Do you think this phenomenon will continue in the future?
«It is probable that in the future we will see further mergers or groupings between the players in the financial center, and therefore not only in the banks, as well as operations to increase efficiency, partly due to the increase in costs to comply with the new regulations. This could cause a further reduction in the number of collaborators active in the sector ».
Speaking of Swiss banks in general, it is said that negative rates represent a sort of “tax” on the sector, which penalizes its results. In your opinion, how much does this phenomenon affect? Do you think that the banks will manage in the long run not to pass negative rates on to small customers?
«To the extent that banks do not pass negative rates on to their customers, as is currently the case for small customers, this measure penalizes banks' profitability, weighing on interest margins. This could lead to an increase in credit prices and ultimately also to a credit crunch, which would negatively affect economic growth. We do not currently see any developments of this kind in Switzerland ».
Negative interest rates have pushed the Swiss real estate market a lot, and there are areas with high prices in Ticino as well. How do you judge the health of the cantonal real estate market?
«The high level of prices and the stricter criteria in terms of financing have led to a slowdown in the demand for residential property: in Ticino as in the rest of Switzerland, fewer and fewer households can afford a home or apartment. Thanks to the rapid reaction of the Ticino market players, there is also a slowdown in supply. The only exception is the Bellinzona region, where construction activity is still on the rise and where the expansion of the offer currently amounts to 2.8% of the housing stock. The slowdown in supply has so far made it possible to avoid an increase in vacancy rates, which are still very low in all Ticino regions. Nonetheless, marketing difficulties are beginning to be felt, particularly in the high-price segment. The weakening of demand is reflected in the price trend, which in 2016 was negative. The most marked correction was recorded in the Locarno region (-3.4%). Overall, it can be said that the property market is gradually moving towards a détente.
In the rental apartment market, the risks seem manageable at the moment. Construction activity is not excessive, although we expect an increase in the Lugano and Bellinzona regions in the current year. Unlike many other Swiss regions, Ticino is currently not seeing a significant drop in immigration from abroad, which helps to limit the increase in vacancy rates, which are growing markedly in other Swiss regions. The share of vacant apartments with 1.2% remains below the national average in Ticino. A few more difficulties can be observed in the Locarno region, where the vacancy rate is relatively high (2.7%), the rent on offer in 2016 decreased and the duration of insertion is clearly increasing ».
In addition to being head of Credit Suisse in Ticino, you are also president of the jury of the Prix SVC Svizzera italiana for small and medium-sized enterprises. He is therefore in a privileged position to assess the situation of the Ticino companies. How do you judge their state of health and their degree of competitiveness? Is the strong franc phenomenon still penalizing them?
«If we look at the Ticino economy, we see dynamic and innovative companies that have well overcome the shock of the franc and - except for the tourism and retail sectors that are currently suffering - the prospects are positive. With the Swiss Venture Club, we choose six companies that are particularly active, innovative and rooted in the area every two years. Often these companies are not known by the general public, either because they are active in niche sectors, or because their main markets are abroad. It is therefore a pleasure and an honor to bring these companies to the fore and to reward their tenacity in wanting to obtain better and better results, while creating jobs and induced activities for the territory ».
We come now to the institution you work for. In 2016, Credit Suisse created the Swiss Universal Bank division, which collects Swiss assets and is expected to be partially listed on the stock exchange. What does this change mean for activities in our canton?
“We created Credit Suisse (Switzerland) Ltd to achieve our strategic objectives, to increase the bank's resilience and to comply with regulatory requirements in the area of 'too big to fail'. In fact, we are now the only universal bank entirely dedicated to Switzerland, therefore totally focused on Swiss private, commercial and institutional clients and on satisfying their needs. Additionally, as a 100% subsidiary of the Credit Suisse AG Group, we can rely on the Group's global network and broad range of products and services. Today there are two legal entities in Ticino: Credit Suisse (Switzerland) SA and Credit Suisse AG, in which the activities dedicated to international clients domiciled abroad and the activities of the group such as IT are grouped ”.
Entrepreneurs are an important part of your clientele. How do you follow this segment of the market?
«Credit Suisse was created by the will of an entrepreneur, Alfred Escher, with the aim of financing the Gotthard railway. We have therefore always paid particular attention to the business world and we continue to do so even today. We have recently created specialized areas for entrepreneurs and executives called “Executive & Entrepreneur Desk” in all regions in Switzerland. In Ticino this sector is managed by Franco Cancellara who, with his collaborators, follows both the needs related to the company and those related to the entrepreneur's assets, from social security to company succession ».
Credit Suisse has launched a restructuring which also includes a reduction in staff. How is the restructuring progressing?
“In 2015, the bank announced a cost-cutting plan that foresees 1 fewer jobs in Switzerland by 600, mostly at its headquarters in Zurich. For our part, we are committed to reducing places as painlessly as possible, that is, by taking advantage of natural fluctuation and looking for possible alternatives within the Group. At the same time, we continue to invest both in qualified collaborators and in our banking platform in order to seize the opportunities for further growth ».
You have been active in Ticino for over a century. How do your relations with the territory develop? Do you have many initiatives underway to signal your presence in the social and cultural field?
«For many years we have witnessed our presence in the area by supporting a good number of initiatives in the cultural, sporting and social fields. Since 1992 we have sponsored the exhibitions at the Art Museum of the City of Lugano. Since it joined the Cantonal Art Museum, moving to the LAC, we have become the main partner of both the MASILugano (Museum of Art of Italian Switzerland) and the LAC. Furthermore, we have been supporting Estivaljazz for many years. Through the Credit Suisse Foundation we make important contributions every year to non-profit organizations, such as the Rare Genetic Diseases Association of Italian Switzerland and the Fondation Art-Thérapie for a project at the EOC in Lugano. Furthermore, we are close to the academic world with the Credit Suisse Awards for Best Teaching awarded to deserving professors from USI and SUPSI, and with the Credit Suisse Awards for Excellent Writing, awarded to students who write for the university magazine L'Universo ".
