In today's business world, there are major uncertainty issues and corporate volatility risks in almost every country in the world. Nations which were favoured for offshore banking and business operations are closing up shop, country's that were business tax havens are being turned on and cities home to 0% corporate taxes are drying up. One star is shining through though, and that's Switzerland's offshore business industry.
Currently, there are more than $506 billion in foreign assets in Switzerland, blowing away the likes of Hong Kong and Singapore and strengthening the Swiss foreign economy to a near-recession-resistant one. This massive stockpile of assets isn't just great news for the Swiss economy either, it shows businesses and venture capitalists that Switzerland is the global leader in security and stability for foreign banking and business operations.
Switzerland's offshore survival
It's no secret that Switzerland's offshore banking's security and privacy has been deeply damaged by the US, Germany as well as France over the last few years. Mainly down to governments combining forces to take away Switzerland's lead in global asset holdings.
The good news though is that Switzerland's offshore asset partners are still continuing to grow, though they are now originating from other countries that have never really been a major player for Swiss offshore asset holdings. Wealthy investors and entrepreneurs from Asia, the Middle East as well as South America are now arriving in droves to Switzerland to look for more secure ways to manage their funds.
International citizens from the nations above are great stabilisers for the Switzerland offshore economy and business from these people is becoming more and more common as their home countries become destabilised and they look for safe havens like Switzerland to store their assets.
The future of Swiss finance
The true future of the Swiss banking industry rests heavily on emerging markets. As developed countries begin to turn away from Swiss banking, the newest and largest players become the developing countries. In particular, Asian and Middle Eastern countries are poised to be Switzerland largest asset partners.
This goal of being the biggest player in developing country asset management is going to be rather challenging for the Switzerland offshore financial industry though as these smaller and less developed nations typically have laws governing the movement of wealth. This means that some citizens are locked to moving just 25% of their assets to Switzerland, so the Swiss banking industry will need to figure out a way to please Asian and Middle Eastern policymakers to improve asset movement.
The final stage in moving assets from the Asian region mainly lies with convincing high wealth entrepreneurs in the region that Switzerland is by far the best nation to move their wealth too. With that said, this opens up a number of doors for large players in Switzerland's offshore banking industry as convincing wealthy citizens to move their cash assets to a low tax, secure and stable economy shouldn't be overly difficult.
Safe, stable and leading for 20 years
As of this year, Switzerland boasts by far the largest offshore management system by asset size. So large in fact that Singapore and Hong Kong would take at least 20 years to catch up, and that's only if the Swiss offshore industry stopped today.
That gives Swiss bankers plenty of time to strategise and developed ways to ensure their longevity and to keep the country a global leader for the decades to come. There's no secret to why Switzerland offshore is such a large industry and it's down the amazing stability and secrecy around asset management that only a politically neutral nation can offer.
If you need some assistance with Switzerland offshore banking or the launch of a Swiss bank account don't hesitate to reach out to our team or learn more about banking and finance on our website.