The chief executive of UBS, Sergio Ermotti, has urged Swiss policymakers to strike a balance between strengthening financial stability and preserving the country’s competitiveness as lawmakers debate new capital requirements for major banks in the wake of the banking turmoil that culminated in the collapse of Credit Suisse.
Speaking at the Point Zero Forum in Zurich on Wednesday, Ermotti said Switzerland’s political process was moving toward a more measured assessment of banking reforms, one that considers both the need to safeguard the financial system and the country’s position as a leading global financial center.
“The political process and the parliament will focus with cool heads, less emotions around what needs to be done to achieve financial stability, but also competitiveness,” Ermotti said.
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He argued that competitiveness remains essential not only for the banking sector but for the broader Swiss economy.
“Without competitiveness, we will not maintain Switzerland as a global and vibrant financial center in the world,” he said, adding that competitiveness is critical for investment, economic growth, and job creation.
His comments come as Swiss authorities consider stricter capital regulations for UBS, now the country’s only globally systemic bank following its government-backed takeover of Credit Suisse in 2023. Regulators and policymakers have been weighing measures that could require UBS to hold significantly more capital to reduce risks to the financial system.
The debate has become one of the most consequential policy discussions in Swiss finance in decades. Supporters of tougher rules argue that the Credit Suisse collapse exposed weaknesses in oversight and demonstrated the risks posed by institutions considered too important to fail. UBS, however, has warned that excessively stringent capital requirements could undermine its ability to compete with large U.S. and European rivals, potentially driving business and investment activity away from Switzerland.
Ermotti’s remarks are seen as an indication that the bank is continuing its campaign to influence the final shape of the reforms by emphasizing the economic trade-offs associated with heavier regulatory burdens.
Beyond regulation, the UBS chief also addressed the growing impact of artificial intelligence on the banking industry, offering one of the clearest acknowledgements yet from a major global bank executive that AI is likely to reduce headcount across parts of the sector.
According to Ermotti, UBS has already deployed hundreds of AI-powered applications and agents across its operations, reflecting the accelerating adoption of automation technologies throughout financial services.
“Let’s be honest – some of the jobs that we have in banking and finance will probably disappear, or you’re going to need less people to do the same job,” he said.
This echoes a broader debate unfolding across the global financial industry as banks invest heavily in generative AI, automation, and machine learning technologies to improve efficiency, reduce costs, and enhance customer services.
Large banks increasingly use AI for functions ranging from compliance monitoring and risk management to customer support, fraud detection, research, and software development. Many analysts expect these tools to transform back-office operations first before gradually reshaping higher-value roles in areas such as wealth management, investment banking, and financial analysis.
Ermotti argued that technological disruption alone should not be viewed negatively if economic growth can create new opportunities.
“If you don’t grow as an economy, if you don’t grow as an organization, you won’t be able to recreate jobs,” he said.
There has been a growing challenge confronting policymakers and business leaders worldwide: how to capture the productivity benefits of artificial intelligence while managing the labor market disruptions that accompany automation.
UBS is in the middle of one of the largest integration exercises in modern banking following the acquisition of Credit Suisse. Cost reductions, operational consolidation, and technology investments are central to the bank’s strategy as it seeks to deliver billions of dollars in synergies from the merger.
Ermotti’s is believed to suggest that AI will likely play an increasingly important role in that transformation.
Across the financial industry, executives are becoming more candid about the employment implications of artificial intelligence. While many banks continue to frame AI as a tool to augment workers rather than replace them, there is growing recognition that some functions will require fewer employees as automation capabilities improve.
The twin themes highlighted by Ermotti — regulation and artificial intelligence — are likely to shape the future of Swiss banking for years to come. UBS faces pressure to become safer and more resilient after the Credit Suisse crisis. The bank is also racing to deploy new technologies to remain competitive in an industry being rapidly reshaped by AI.
Experts believe that how Switzerland balances those priorities may determine not only UBS’s future trajectory but also the country’s standing as one of the world’s premier financial centers.