Credit Suisse collapse puts Switzerland’s wealth lead at risk

SWITZERLAND’S position as the leading destination for wealth is in jeopardy following the collapse of Credit Suisse, according to a report by Deloitte.

While Switzerland remains the top location for wealth management globally with US$2.2 trillion under management, inflows have languished in recent years, the consulting firm said on Wednesday (Oct 23).

Those trends are in contrast to some competing centres, including the US and Hong Kong. Switzerland’s lead over the UK – the global number two – has shrunk to only about US$8 billion from roughly US$500 billion in 2020, according to figures from Deloitte.

“Switzerland still remains the leading and preferred booking centre for European and Middle Eastern clients, but asset inflows from both these regions are yet to fully recover after the collapse of Credit Suisse in 2023,” the study found.

Last year, Switzerland’s second-largest bank was taken over by rival UBS Group in an emergency rescue brokered by the Swiss government. The deal followed years of losses and management failures at Credit Suisse.

In order to defend its status in the global wealth market, Switzerland should focus on bolstering its regulatory framework and re-establishing trust, Deloitte said, adding that the country also needs to invest in its digital transformation and on improving efficiency. BLOOMBERG