Company insight


The culture of innovation and sustainability


Liechtenstein Bankers Association understands the need for authentic and urgent innovation for the banking sector to remain relevant – and with this comes a responsibility to do so sustainably. The company explains why digitalisation can only take banks so far, and that actions speak louder than words.


business leader, and scientist claims that innovation is part of the DNA of their country, company, or themselves. In many cases, however, the only goal is to attract attention. The term “innovation” is also overused in banking, especially when it comes to digitalisation and blockchain technology.


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Merely digitising the existing business model and the associated processes is not innovation. It is more important to rethink the entire value chain. Innovation is creating something new. The banking sector must face rivals worldwide that have technological expertise, the capacity to develop innovations quickly, and a consistent focus on customers.


oogle generates more than 1.2 billion hits for the term “innovation”. Every politician,


Simon Tribelhorn CEO,


Liechtenstein Bankers Association


never be as slow again as it is today. To keep up with the pace, we not only need an understanding of innovation, but a new innovative culture altogether. This requires a willingness to embrace change and to take a critical and unbiased look at the past. It means leaving your comfort zone and customising how clients are served. Of course, this also requires a high level of technological competence. In 2019, the Global Financial Markets Association and PwC identified the four most important


“Younger generations are paying more and more attention to sustainability and have very clear expectations of their banks.”


Client focus and agility Banks have been talking about client focus for as long as they have existed. But now the situation is really demanding, and companies from outside the sector will take over the business of traditional banks. Thanks to technology, these companies know the end customers and their needs better than they do themselves, and are quick to capitalise. Or, as is often claimed, in the future banks will no longer be necessary, but banking will be. The speed of change has never been as fast as it is now, but it will also


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technological core competencies: data and analytics, cloud computing, artificial intelligence, and distributed ledger technology (blockchain). According to a recently published study by Unit4, awareness of artificial intelligence is growing across the financial industry, and 70% claim that they are at least somewhat informed about the topic. However, 83% of respondents also believe they will have to acquire more expertise, with a focus on artificial intelligence, analytics, data science, machine learning, and programming.


All of this should also be true of Liechtenstein’s banks.


In-house potential


This is exactly where the recently initiated collaboration between the Bankers Association and the Canadian Blockchain Research Institute comes in. Through their membership in this leading global think tank, the Bankers Association and its member banks are joining a global community of blockchain innovators, experts, builders, and thought leaders to help shape the future of banking. Moreover, thanks to its short decision paths and the relative size of its institutions, Liechtenstein has the necessary agility and is in a better starting position than many other financial centres.


Digitalisation and the associated dynamics are not the only challenges, however. The clients of today, and those of tomorrow, not only want a financial return, but also to invest in a value-oriented way and to make a positive impact with their investments for the benefit of society and the environment. Younger generations are paying more and more attention to sustainability and have very clear expectations of their banks. Alongside digitalisation, sustainability has become a key transformation driver and will permanently change the financial sector. Digitalisation and sustainability go hand in hand. Sustainability answers the question of “what” and digitalisation the question of “how”. Sustainability as a megatrend shows no sign of abating, and the technology to aid this transformation is readily available.


Chief Executive Offi cer / www.ns-businesshub.com


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