Swiss Retain Faith In Banking Secrecy
Tuesday, March 23, 2010

The Swiss Bankers Association has published a survey that shows resounding opposition to Switzerland’s move towards increased transparency and information exchange with regard to bank account deposits.

Survey respondents were strongly in favour of maintaining the protection of their privacy in financial matters (89%) and retaining bank-client confidentiality (73%). Moreover, a good 70% object to the automatic exchange of information with foreign tax authorities.

For the first time in the history of these surveys, a narrow majority claimed to be unsatisfied with politicians' commitment to bank-client confidentiality. However, within Switzerland, clients are more satisfied with their banks than ever before, the survey found. Respondents were also optimistic about the general economic situation and the international competitiveness of the Swiss financial centre.

Since 1995, the Swiss Bankers Association has conducted an annual representative survey of the Swiss population, asking them about their attitudes towards the banking sector and about the general importance of banks for the Swiss economy. The consistency of methodology over the years enables long-term comparisons to be drawn with high reliability.

Respect for financial privacy among the Swiss population remains very strong, despite or perhaps because of the ongoing debate about bank-client confidentiality. 89% believe that bank clients' financial details must be protected from third parties. Bank-client confidentiality also continues to receive strong support: 73% (2009: 78%) think that bank-client confidentiality should be maintained. 70% believe that Switzerland should not give in any further to European pressure on bank-client confidentiality and oppose an automatic exchange of information with foreign tax authorities. It should be noted that the government's efforts to defend bank-client confidentiality were rated significantly lower than a year ago (40% believe that the government does not make enough effort, while 11% think that the government makes too much effort). As a result, there are serious doubts about whether bank-client confidentiality will still take the same form in five years' time.

Most Swiss people remain loyal to their main bank, even in times of turbulence. The cantonal banks are still in the lead, at 27%, followed by the Raiffeisen banks (21%). The respondents' view of their main personal banks improved once again this year: 87% had a positive or very positive opinion of their main bank (2009: 85%). This means that clients have never been more satisfied with their banks since this question was introduced in 2001. The proportion of clients of the major banks expressing a very positive opinion doubled from 11% to 22% over the last year. Respondents’ trust in their own bank has apparently recovered from the events of last year, with 73% believing they can trust their main bank. In contrast to this positive assessment of their own personal bank, perceptions of Swiss banks are a matter of public debate. Respondents said, however, that Swiss perceptions of banks are more critical than is deserved.

When asked how Switzerland’s banks and financial centre stand compared with competitors from the UK, Singapore, Luxembourg or the US, 56% saw Swiss providers as having an advantage (2009: 59%). Quality of service, education and training as well as both political and economic stability are still recognized as advantages for the Swiss financial centre.