With net fee revenues of 267 million CHF (gross: 303 million CHF), the results of our Financial Services are at the previous year’s level. Business with local Swiss financial institutions was particularly satisfactory. Assurance was strengthened by new auditing mandates, and Cybersecurity and M&A achieved solid growth. Classical financial advisory was ambivalent though: While Insurances and Asset Wealth Management increased, the Banking & Capital Market sector showed a slight decrease.
Digitisation, and the new possibilities it offers, have a high impact on our market environment and there are new Fintech companies entering the market. They force conventional providers of financial services to reconsider their business models and to adapt them continuously. The Banking & Capital Market sector in particular was under high pressure and characterised by a cost war which will have a significant impact on the results of the service providers in the coming reporting year. Additionally, political and legal uncertainties due to Brexit complicated any sustainable planning. And last but not least, the auditor’s rotation obligation hampered our long-term perspective in the strategic advisory of the financial sector.
In the next reporting year, the service need in the areas of risk & regulation, digital overall solutions, transformation and deals will increase. We still face many regulations generating substantial implementation costs and huge challenges for the companies. The situation will even get worse due to stricter requirements for risk compliance and the need to integrate sustainability factors into risk management.
With the ongoing process of digitisation, we are focusing our Financial Services on innovation and want to adapt traditional business models to the changed context. This also includes developing the existing processes of client interaction (“Front Office Transformation”) into a holistic and flexible approach.
Make the Difference’ is our promise that marks a turning point in our company. PwC’s service design team and the strategy team of Strategy& took this promise to a new level. We now actively involve our clients in the design process of our products, services as well as our ways of thinking and acting.
Sustainability is getting more and more attention from the public and regulatory sector. In cooperation with the financial institutes, we optimise their strategies concerning sustainability goals and the implementation of regulatory requirements. In this context, the European Commission’s Action Plan for a greener and cleaner economy and its implementation is a key factor. We therefore assume our social responsibility and support our clients in the financial sector to become potential actors in fighting climate change by steering the financial flows consciously. This also strengthens their social credibility.
The EU Action Plan ‘Financing Sustainable Growth’ is a unique chance to implement global sustainability goals. We support financial institutions in the elaboration of their sustainability strategy, and we inspire them to take an active part in the world’s transformation process. This is how we live up to our responsibility towards society.
CEO, PwC Switzerland
Tel: +41 58 792 44 72