New Roadmap 2025 – Growth through sustainability and innovation
With their new multi-year strategy, Roadmap 2025, the banks in Liechtenstein are emphasising long-term growth, especially in their core business of international asset management. The goal is to achieve a top position internationally. Thanks to its high innovative capacity, the banking centre aims to make a valuable contribution to the necessary transformation of the global economy towards more sustainability, while at the same time creating added value for its discerning clients. This ambitious goal is to be achieved through the banking centre's unique combination of tradition, innovation, quality, and stability. The banking centre and the Bankers Association are repositioning themselves in a forward-looking and agile manner in order to actively shape the future.
With a share of about 24 % of GDP, the financial centre is the most important sector of Liechtenstein's economy after industry and manufacturing, and it will remain a cornerstone of the Liechtenstein economy in future. Banks are the most important component of the financial centre. They employ more than 2 000 people in Liechtenstein alone and a total of more than 5 000 at over 20 locations worldwide. This makes Liechtenstein banks important employers, both in Liechtenstein and abroad. Despite their international focus, the banks are strongly rooted in Liechtenstein and continue to be committed to their home country. Thanks to the Customs and Currency Union with Switzerland and simultaneous market access to the European single market, the banks draw on unique location factors.
Overall, Liechtenstein banks managed assets of more than CHF 360 billion as of the end of 2020 and have an average Tier 1 capital ratio of 21.7 %. At less than 0.5 %, non-performing loans are exceptionally low compared with banks internationally.
Notwithstanding all these strengths and in order to maintain their competitiveness for the future, Liechtenstein banks – together with the Bankers Association – spent several months of the demanding past year developing their new multi-year strategy, Roadmap 2025. On the one hand, the new Roadmap is a continuation of the two previous strategies with a focus on modernisation and repositioning. But it also places a new, self-confident emphasis on growth through sustainability and innovation. The local banks aim to make a valuable contribution to the transformation of the global economy towards more sustainability. According to Dr. Hans-Werner Gassner, Chairman of the Liechtenstein Bankers Association (LBA), "We are pursuing a comprehensive sustainability strategy, because we are convinced that our clients also expect their banks to play a part in solving the environmental and social challenges of our time."
The heart of Roadmap 2025 for the Liechtenstein banking centre is the Strategic House containing the elements Vision, Mission, Core Values, and Success Factors.
The Vision can be summed up as "together to the top". In the Mission, the banks are committing themselves to offering high-quality products and excellent services for their discerning, international clients. In addition to the Core Values of Sustainable and Innovative, Excellent and Connected will play an important role in future.
The banking centre's international reputation as compliant – which has been successfully strengthened over the past decade – must not be jeopardised by the growth strategy. Compliance with European and international rules – especially relating to taxation, money laundering, and terrorist financing – is not up for debate. Zero tolerance continues to be an absolute imperative.
The Liechtenstein financial system is dependent on smoothly functioning international cooperation and integration. The Bankers Association has therefore formulated a clear political priority to further expand Liechtenstein's international network and to strengthen external relations in a targeted manner. Participation and membership in important international bodies and organisations is likewise an important factor for the attractiveness of a location.
Moreover, S&P's AAA country rating for Liechtenstein is one of the strongest assets of the banking and financial centre. The Principality's freedom from debt and balanced budget – one of the main reasons for Liechtenstein's AAA rating – must continue to be managed with care. The Bankers Association will also strengthen its measures to expand its international network and further intensify its dialogue with the most important stakeholders in Liechtenstein and abroad.
A comprehensive analysis examines the future Success Factors for the Liechtenstein banking centre. In addition to familiar factors such as Stability, Competence, and Internationality, Agility is now in a prominent position. And what applies to the member banks should also apply to the LBA as the voice of the entire banking centre – because for successful implementation of Roadmap 2025, a strong and competent representative of interests is needed more than ever. Simon Tribelhorn, CEO of the LBA, explains: "I am very pleased that, along with the new strategy for the sector, we have also taken a critical look at ourself and our activities and, based on that examination, have initiated a structured change process. Our declared goal is to identify future challenges at an early stage, to develop answers and solutions to those challenges, and to support our members in shaping the future, according to their needs and in a targeted manner. We want to take responsibility and leadership on issues that are crucial to us, such as sustainability. Together, we are making our financial centre fit for the future as a successful international player." But Roadmap 2025 is not a static strategy; instead, the four Success Factors are to be further developed on an ongoing basis. For this purpose, numerous specific fields of action have been defined for each individual Success Factor. They form the core of the future activities of the banks and the LBA at various levels. A distinction was made in this regard between political priorities and measures that will be implemented by the banks themselves or by the Bankers Association.
As Dr. Hans-Werner Gassner says in summary, "The banks in Liechtenstein fully support Roadmap 2025. We are convinced that Roadmap 2025 puts them and the LBA in a strong strategic position for the coming years to actively shape the megatrends of digitalisation and sustainability, for the benefit of clients and society."