Andre Lagger: «We Don’t Need a Revolution»

Andre Lagger: «We Don’t Need a Revolution»

In addition to the trends I just mentioned, I would add both changing client behavior as well as regulatory complexity as important factors. Artificial intelligence and cognitive computing are two areas that I find very exciting.

«The concept has a lot of potential»

These technologies work like the human brain and learn autonomously. They are a way to gain entirely new insights using the massive amount of existing data and applying it to the benefit of our business. Other areas that I find interesting are cloud computing, or the obtainment of IT services from the internet, as well as regtech, which consists of innovative technologies used to manage adherence to regulatory requirements.

What about blockchain technologies?

The concept is interesting and it has a lot of potential. With the exception of the cryptocurrencies already available today, which are a concrete application of blockchain, more complex, market-ready applications will only be available in five to ten years. One possible application here would be for securities settlements, which could be radically simplified with this technology.

«Being fearful is the wrong approach»

We have talked to people in various departments at LGT about whether there are any applications in this area that we could contribute to. The feedback was clear: there is currently no internal use case for blockchain technology. That being said, our in-house specialists are monitoring this matter.

A massive number of job cuts are being predicted for the banking sector in the years to come, not only due to efficiency gains achieved through digitalization, but also because some believe that fintech companies will take business away from the banks. What is your view on this?

It isn’t possible to make a reliable assessment of the extent of the downsizing at present. We have to see the possibilities that the advancements in digitalization bring with them as an opportunity and we have to take advantage of that opportunity. This will improve our position in the market and will keep LGT on the path to success.

Being fearful is the wrong approach. It’s important to be open to the transformation, we should accept it, be part of shaping it and should be acquiring the necessary qualifications.

And as regards fintech companies: I don’t see them primarily as the competition, but as valuable partners with whom we are already working closely. That being said, these companies should be evaluated very carefully. There are too many fintech companies, and lots of them are still in the start-up phase.

We have learned from the venture capital industry that less than 20 % of startups make it in the long run. In my view, the same applies to the fintech industry.

Andre Lagger has been CEO of LGT Financial Services since 2001, and CEO of the Operations & Technology business unit since 2006. He has a doctorate in Business and Economics from the University of Bern.