Swiss finance chief warns: 'Our top position is not secured'

Giorgio Pradelli, CEO of the private bank EFG, has issued a stark warning: Switzerland's preeminent position as a global financial center is far from secure. He emphasizes that the industry cannot afford complacency, particularly as competition intensifies and the nature of wealth management evolves. Pradelli's concerns are amplified by a recent study from the Boston Consulting Group (BCG), which forecasts that Hong Kong will overtake Switzerland as the leading offshore banking hub by 2030. This projection underscores a growing trend of wealth mobility and the increasing importance of regional diversification for assets amid geopolitical uncertainties.

EFG itself is experiencing this shift firsthand. The bank has reported stronger growth in new capital inflows from Asia compared to its home market in Switzerland during the first half of 2026. Out of the 5.7 billion Swiss francs raised since the beginning of the year, 2.2 billion came from Asia, while only 1 billion originated from Switzerland. This regional disparity highlights Asia's booming financial landscape, largely driven by mainland China's economic expansion and Hong Kong's strategic position. While EFG's overall growth rate of 6.2 percent exceeds its target, Pradelli acknowledges the challenges of attracting similar levels of new capital in Switzerland, where the bank already holds a larger market share.

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We cannot assume that our top position is secured

Pradelli's outlook extends beyond EFG's performance to the broader strategic needs of the Swiss financial sector. He stresses the critical importance of maintaining market access to the European Union, suggesting that such access is vital for Switzerland's continued competitiveness. The traditional strengths of Swiss private banking, such as security and stability, have been challenged by the erosion of banking secrecy and the increasing commoditization of wealth management services due to digitalization. As financial markets become more interconnected and client preferences shift towards geographical diversification, Switzerland must adapt proactively to retain its edge.

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Traditionally, entrepreneurs and wealthy families wanted to diversify their assets primarily by asset class. Today, given the geopolitical uncertainties, a geographical dimension is added.