The digital future of the Swiss financial center: Drivers and prospects

The year is 2035. My AI assistant accompanies me invisibly throughout the day: It organizes the best route and automatically books transportation. Whether at the bakery or in a café — embedded payment technologies handle payments in the background. Throughout the day, it anticipates my needs, suggests suitable activities, and gives me access to free medical advice and highquality education. All a matter of course in a world where AI opens up huge opportunities. The Swiss financial system has undergone a fundamental transformation through the consistent use of advanced technologies. Customers interact seamlessly with GenAI agents, which draw on comprehensive data analysis to deliver highly personalized services and process complex requests efficiently and automatically. Distributed ledger technologies (DLT) play a central role in securing transactions and creating transparency, which contributes significantly to digital trust. Although quantum computing has yet to reach its full potential, it is already enabling more precise risk analyses and improving security. Sustainable IT practices are an integral part of the IT infrastructure, and the use of open source solutions has significantly improved flexibility and cost efficiency. The result is a highly personalized, secure and efficient banking experience in which AI enables new forms of interaction and value creation, and where technological advances strengthen digital trust. However, technology not only serves to increase efficiency, but also enables completely new forms of customer interaction and value creation. The agility of financial institutions and their ability to adapt to rapid technological developments have been crucial to this transformation.

The digital transformation of the Swiss financial center is being driven by innovative software and IT solutions. IT is no longer purely a supporting function — it has become the strategic core of many financial institutions. The dynamic fintech sector with over 500 companies (as of 2024) underscores the central role of Swiss-made software for the competitiveness of the financial center. What are the key technologies that will change the financial center in the long term?

Artificial intelligence
AI is the most significant technological development since the introduction of the graphical user interface. It is a key driver of innovation and automates investment processes, optimizes compliance, and improves risk management and IT security. Generative AI personalizes content and individualizes customer communications.

Digital assets and distributed ledger technology (DLT)
DLT increases transparency and efficiency in financial markets. Tokenization improves liquidity and creates new financing models Unified ledgers could seamlessly connect DLT platforms in the future.

Digital trust and self-sovereign identity (SSI)
Technologies such as decentralized identifiers (DIDs) and verifiable credentials (VCs) enable user-centric identity solutions. The planned Swiss e-ID will play a central role as a trust infrastructure.

Quantum-safe technologies (PQC and QKD)
Post-quantum cryptography (PQC) and quantum key distribution (QKD) secure data in the long term against attacks by quantum computers.

APIs and interoperability
APIs promote open finance and enable efficient data exchange. The Finternet vision centers on networked financial ecosystems and interledger protocols to ensure interoperability.

Open source
Open source software drives innovation in AI, DLT and security. Transparency, collaboration and trust are key principles in this regard.

Operational resilience and sustainable IT
Resilient IT infrastructures ensure the availability of critical systems and data security. Sustainable IT optimizes resources and builds trust in digital financial services.

With a clear focus on scaling, openness to innovation, and the expansion of local expertise, Switzerland can maintain its digital sovereignty and secure its position as a leading financial and technology location in the long term. Close cooperation between banks, technology providers and regulators remains essential. The IT infrastructure of Swiss banks is one of the most secure and efficient in the world, and the Swiss software industry plays a central role in this. However, clear strategic measures are required to secure the digital sovereignty of Swiss banks and strengthen the competitiveness of the Swiss software industry.

International scaling and specialization
The Swiss fintech sector needs to focus more on international markets, as the domestic market is too small to achieve sufficient economies of scale. Focusing on specialized B2B solutions that are in demand globally, such as APIs for open banking or applications for DLT-based financial systems, is crucial. Interoperable technologies and open standards are essential here to ensure seamless integration into international networks.

Openness to new technologies and willingness to take risks
Switzerland must become bolder in testing new technologies at an early stage. This requires a culture of openness and a willingness to take risks on the part of banks, regulators and technology providers.

Strengthening research and local infrastructure
Targeted investment in research and development is essential to ensure Switzerland’s technological independence. The expansion of local AI infrastructure, including large language models, and the further development of blockchain technologies are crucial.

Operational resilience and sustainable IT
Thanks to its strict regulation and innovative strength, Switzerland can play a pioneering role in sustainable IT and operational resilience. Its clear regulatory framework and high security standards offer banks a unique foundation for stable and sustainable digital infrastructures. Switzerland’s principlebased regulatory approach, which reconciles innovation and democratic traditions, promotes progress through digital trust.

To remain a leader in the financial sector, Switzerland must resolutely push ahead with digital innovation, particularly in the areas of AI and digital trust. This requires a secure and resource-efficient digital infrastructure, including the e-ID. National and global standards for digital trust and investment in local AI systems such as large language models (LLMs) are essential. Operational resilience and sustainable (resource-efficient) IT will become more and more important. Value is increasingly being created by intelligent GenAI applications, digital credentials, AIsupported automation based on foundation models, personalized services and new trust-based digital offerings. Given the profound transformation of banking processes brought about by technology, which goes far beyond traditional financial innovations and points to a shift towards technology-driven financial services, the term “techfin” (rather than “fintech”) might more accurately describe the reality of future developments.