Switzerland's old and new financial model: how the global banking haven is changing
- Zener Group
- Jan 21
- 3 min read
For decades, Switzerland has been seen as the benchmark for financial stability: a neutral jurisdiction, strict banking secrecy, protection of private property, and trust from clients around the world.
However, events in recent years have shown that this model is no longer immutable. The country's financial system has entered a phase of profound transformation.
From neutrality to geopolitical reality
A key turning point was Switzerland's accession to international sanctions regimes and the freezing of assets based on foreign policy decisions. This effectively meant the end of absolute financial neutrality - one of the main pillars of the Swiss banking model.
Experts note that for global clients, this was a signal that Swiss jurisdiction is no longer outside the realm of geopolitics.
Source: Reuters - Switzerland adopts EU sanctions, ending long-standing neutrality
The collapse of Credit Suisse as a systemic symptom
The takeover of Credit Suisse by UBS in 2023 was the biggest financial event in modern Swiss history. Although the Credit Suisse crisis was attributed to management mistakes, analysts point to a deeper cause: loss of confidence and capital flight.
Private clients began to transfer their assets in advance to other financial centers-Singapore, Dubai, Hong Kong-fearing regulatory and sanctions risks.
Source: Reuters - Credit Suisse collapse shows fragile trust in global banking
Tighter controls and the end of banking secrecy
The modern Swiss banking system operates under the following conditions:
Automatic exchange of tax information (CRS),
Enhanced KYC/AML procedures,
Full transparency of the origin of funds.
Banking secrecy, once a symbol of Switzerland, has now been effectively replaced by a regime of total compliance.
New logic of capital storage: off the banks' balance sheets
One of the key shifts has been a change in the attitude towards deposits. Legally, funds in a bank account are considered the property of the bank, and the client is an unsecured creditor. In the context of bail-in risk (bank rescue at the expense of depositors), wealthy clients are increasingly choosing alternatives:
Custodial structures,
Allocated physical gold,
Segregated storage outside the bank balance sheet.
Switzerland, as one of the world's largest gold processing and storage centers, is strengthening its role in this segment.
De-dollarization and alternative payment systems
Against the backdrop of fragmentation in the global financial system, Switzerland is participating in the development of an alternative payment architecture through the Bank for International Settlements (BIS), which is headquartered in Basel.
BIS projects are aimed at:
Direct settlements between central banks
Reducing dependence on the dollar and the SWIFT system
Testing multilateral digital currency platforms.
Source: BIS - Project mBridge
The role of the Swiss franc and the National Bank
The Swiss National Bank (SNB) finds itself in a difficult position. On the one hand, the franc remains a “safe haven,” but on the other, its strengthening threatens the export economy.
In response, the SNB:
Actively manages the exchange rate,
Diversifies reserves,
Retains gold as a strategic asset.
Two financial realities
This results in a two-tier system:
For the majority:
Digitalization,
Increased control,
Preparation for cbdc,
Programmable finance.
For large capital:
Physical assets,
Private structures,
Minimization of digital footprint,
Diversification of jurisdictions.
Conclusion
Switzerland no longer sells the image of a “completely secure safe.” Instead, it offers tools for adapting to a new, unstable, and fragmented financial world.
The country's financial model is evolving:
From neutrality to pragmatism,
From secrecy to control,
From deposits to physical and off-balance sheet assets.
These changes are important not only for Switzerland, but also for the entire global financial system, which is entering an era of structural shifts.
