Along the entire value chains of banks and insurance companies, a gross value added of 92.6 billion Swiss francs was generated directly and indirectly in 2021. This is also associated with 422,100 full-time jobs.

Companies in the financial sector provide a wide range of financial services, such as money supply and risk hedging, for private individuals and companies, which are essential for a functioning national economy. In 2021, the 230,600 employees (in full-time equivalents) of banks and insurance companies generated direct gross value added of CHF 66.7 billion. Through intermediate demand, for example for IT or consulting services, and consumer spending by employees, the financial sector also acts as a driver for other industries. As a result, along the value chains of banks and insurance companies, a total gross value added of 92.6 billion Swiss francs and 422,100 full-time jobs were created in 2021 - including indirect effects. This means that more than one in eight francs of value added and one in ten jobs can be attributed to financial sector activities.

Financial sector accounts for more than 13% of total fiscal revenues

The economic activity of the financial sector generated CHF 19.9 billion in tax revenues. This corresponds to more than 13% of Switzerland's total fiscal revenues. These are the key findings of the study conducted by BAK Economics on behalf of the Swiss Bankers Association SBA and the Swiss Insurance Association SIA.

Well-trained employees increase productivity

Well-trained and available skilled workers are essential for the success of a company or an industry. But here, too, companies are faced with international competition, which makes it challenging to recruit highly qualified workers. The financial sector is better able to find the personnel it is looking for than the service sector as a whole or the industrial sector. In 2021, six out of ten employees in the financial sector had a university degree. In the other sectors of the Swiss economy, this proportion was 42%. Over the past ten years, the proportion of employees with a tertiary education has generally increased markedly in Switzerland. Partly due to its well-educated workforce, the financial sector is one of the most productive industries in the Swiss economy.

Financial center acts as a supporting pillar of the economy in times of crisis

The financial sector is the third largest industry in Switzerland and thus an important pillar of the Swiss economy. It generates higher value added than the pharmaceutical industry and retail trade combined. According to BAK economists, the outlook for the financial sector is moderately positive despite numerous imponderables. BAK Economics expects a growth rate in gross value added and headcount in the financial sector, despite high inflation rates, an impending recession and geopolitical risks.

Even though the bear market is causing assets under management and the associated commission income to shrink, the interest rate increases will have a positive impact on the banks' interest margin business. Overall, BAK Economics expects a slight increase in value added for the banks (2022: 0.5%, 2023: 0.8%). The financial sector can thus provide positive impetus as a job and growth driver for the overall economy, particularly in the event of a slowdown in the economy.