Swiss banks have a dilemma in adopting AI

More and more Swiss banks are adopting Al and other cutting-edge technologies but there are some related concerns too:

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Switzerland is known for its banking. It is one of the foremost banking and financial centers in the world with a highly developed network and having specialized domains like private banking and asset management. There are universal banks, cantonal banks, private banks and wealth and asset managers in the country. The banking system is governed by the Swiss National Bank with its main offices in Bern and Zurich. Half of its share capital is held by the cantons, the cantonal banks and other public bodies while Swiss citizens own the rest.

CHANGING FACE

Technologies like AI, big data and blockchain are now increasingly influencing the way Swiss banks are operating even as the banking sector in the country as a whole is passing through the long-winded process of transformation. There is also higher levels of competition the traditional banks are facing from non-banking institutions and fintech companies. Besides, banks have, as in other countries, to handle the demand for personalized, even customized services.

Switzerland's banks have been in the process of investing in automation, mainly with a view to improve operational efficiencies and meet the enhanced demands of the customers. They are more focused on digital channels, in implementing data governance frameworks and tools to enhance data quality, in adhering to the stricter regimes of compliance, and in having better understanding of the customer mindset. They are also concerned about addressing regulatory requirements in the wake of increased adoption of AI.