Considered a ‘tax haven’, Switerzland’s banking industry has established its highly reputable position by minimising financial risks and maximising privacy for its clients. There is no doubt that Swiss banks will see a rapid transition into the digital world due to an impressive 40% increase in online banking in the last two years and the use of mobile banking doubling in size. These statistics, amongst many more, portray the abundant opportunities for fintech jobs, cyber security jobs and the banking recruitment industry as a whole.
Given this long-standing, it will come as no surprise that Switzerland is a hub for fintech companies. Despite a slump in 2021, Swiss fintech firms secured CHF 605 million in 2022 in funding. With that growth in investment comes a growth in job opportunities, not only for fintech professionals but also for cyber security professionals and the banking recruitment industry as a whole.
Read on as we explore how digital transformation is fuelling the transition to invisible banking and how attracting great talent will be fundamental to the future of banking.
Banking as a digital service
Client experiences must be seamless and effortless as the industry a becomes more commoditised sector. Within the next five years, Swiss banks are anticipating Gen Z - the generation born between 1997-2012 - to be an important banking client segment as their wealth is forecast to grow significantly. Gen Z are heavy users of digital platforms and therefore more accustomed to accessing things online as opposed to offline. This is not solely the case for Gen Z but for all ages as a recent study shows that 73% of Swiss residents use online banking, compared to 55% of EU residents.
Such high usage of mobile apps predominantly stems from the client's ability to communicate via chat with their banks from any device anywhere in the world. The future of mobile apps awaits the implementation of more automation and robotics into its banking services. This entails computer-coded software with an array of benefits such as giving clients 24/7 support and availability alongside elevating productivity and reducing costs. Fintech jobs are fast expanding for Swiss banks looking for assistance in integrating such innovative methods into their operations and processes
What can blockchain technology offer the future of banking?
Blockchain technology is redefining the future of finance. The concept of Smart Contracts itself is an electronic contract with ownership transfer provisions incorporated into the contract itself, this eliminates the need for third parties to be trusted. Using identification codes stored on the blockchain, luxury goods, such as art or jewels, can be tracked and verified for authenticity. Blockchain technology offers the potential for improving ownership of intellectual (digital) property. In addition, improved visibility of funds flow can provide unprecedented transparency and regulatory oversight in the foreign exchange market.
The resilience of biometric security technologies
More recruitment in cyber security jobs is essential as the banking industry becomes increasingly digitalised. According to the Federal Statistical Office, last year’s cybercrime rate increased by 24% compared to 2020. That being the case, a job in cyber security is needed now more than ever in order to combat the threat of cybercrime and possible data breaches.
Cyber security engineers work to protect us by designing biometric authentication. By fundamental nature, biometrics are difficult to replicate and quicker to process than personal identification codes. Additionally, more sophisticated biometric solutions, such as palm, iris, and facial recognition features built into mobile devices are likely to appear within the next few years.
What innovations will banks see in 2023?
As the tech scene continues to evolve at a rapid pace, banks in Switzerland and around the world are expected to see several new innovations in 2023. As well as an uplift in mobile banking and the increased development of blockchain, virtual assistants, and personalized financial advice are set to make their mark on the sector. Another prominent area of focus will be the development of more sophisticated AI-powered tools for financial planning and risk management. This takes us onto the challenges that the industry faces.
What are the future challenges of the banking industry?
The banking industry in Switzerland has always been known for its stability, reliability and security. However, with the rapid changes in technology and global economic conditions, the industry is facing new challenges that require innovative solutions. One of the biggest challenges facing the banking industry in Switzerland is the increasing competition from fintech companies, which are disrupting traditional banking models with their innovative products and services.
A second challenge is the pressure on banks to comply with stricter regulations. Digital banking fraud, thanks in part to AI voice technology. This technology can create voice clones of individuals using only a three-second clip of recorded speech, allowing fraudsters to make unauthorized transactions and steal sensitive information
Lastly, the industry needs to adapt to changing customer expectations, such as the demand for more personalized services and seamless digital experiences. These challenges require a forward-thinking approach from Swiss banks, as they seek to maintain their position as leaders in the global financial sector while navigating an increasingly complex and dynamic landscape.
Are you looking to get involved by digitalising the banking industry?
Swisslinx has an excellent history of collaborating with emerging fintech startups as a partner in talent strategy and management. Our experts have deciphered the ways to attract and accurately identify talents from both local and international markets.
Do you believe that you can help us digitalise the banking industry? Why not browse through some of our financial services jobs or send us a CV and actively take the next step up in your career ladder? Get in touch to find out more about the opportunities we have!