Generationally Speaking
Old names, new plans: energy, cybersecurity and a Swiss billionaire
Dear Insider,
Switzerland is a doggedly individualistic nation.
The rights of its citizens to vote on almost every major issue are well-enshrined and world famous.
And many of its individuals have done very well for themselves.
Millionaires and billionaires in Switzerland abound.
This makes the Swiss (somewhat) unique. A generally egalitarian society with potential for making big business.
How will this now play out as the next generation arises and the former passes on?
Quick hits:
💸 Old money for new problems
Swiss billionaire Hansjörg Wyss is putting his money where his mouth…often is.
The 87-year old titan of Swiss business (and active liberal political supporter) has invested CHF 100 million ($110 million) in a research project aimed at developing better energy storage solutions to tackle Switzerland's winter electricity shortages.
The project, which is being led by the Swiss Federal Institutes of Technology in Zurich and Lausanne (ETH and EPFL), will focus on using excess summer power to produce hydrogen, which can then be converted into green methanol or methane for storage.
The aim is to have demonstration plants operating in the megawatt range by 2028.
😊 (Old) faces in new places
When banking gets boring (or just too crazy) - former bankers take on new ventures.
The co-founder of Swiss mobile payment app Twint, Thierry Kneissler, has joined the board of directors of Swiss Stablecoin AG, a company that issues a cryptocurrency pegged to the Swiss franc.
Meanwhile, Sascha Hostettler, another long-time banker with over 25 years of experience, has signed on to consulting firm Eraneos as a Senior Manager for Financial Services, where he will support financial institutions in implementing digital strategies.
And last (but certainly not least), Martin Scholl, a former CEO of Zürcher Kantonalbank, has decided to jump into Swiss venture capital, by joining Verve Ventures as chairman.
💻 Hunting the hackers
The Swiss Federal Prosecutor's Office has opened a criminal investigation following a cyberattack on the website of the Federal Assembly last Wednesday. The attack caused the website to be partially inaccessible or slowed down, but internal systems and data were (apparently) not affected.
The (embarrassing) incident comes just a few days after hackers stole data from the Federal Office of Police and the Federal Office for Customs and Border Security, with some of the data being published on the darknet.
💡The Point:
👉 The name Hansjörg Wyss is not new to the Swiss business world. The venerable billionaire made a large part of his fortune in the medical device business in the early 70’s. His charitable donations and socially active interventions have been well-documented - as has his rivalry with right-wing patriach (and SVP godfather) Christoph Blocher.
A further CHF 100 million for better batteries fits very well in the portfolio of his contributions to a better world.
It also fits with a larger pattern of “great men and women” taking the initiative to push forward topics that meet with political deadlock.
👉 Life after a successful banking career can be hard - or not. Many big names have gone on start their own consulting companies or take on fanciful side projects. With mergers and tightening margins, it is likely that many more bankers will need to find new careers. If they have valuable knowledge and open minds (as well as strong networks), their experience can seed a strong wave of new business and innovation in Switzerland.
Former bankers with experience and open minds can be a strong driver for future innovation in Switzerland.
👉 Switzerland is known as a land of safety and security. But even it is not immune to the challenges of cybersecurity. Insurance companies face the challenge of underwriting policies to protect big business. A recent study found that most banks and insurance firms (of which Switzerland has many) are happy to pay out ransoms. Now it is up to the government - after it also comes under fire - to beef up the country’s defenses.
💡The Insider Angle:
Generations come and go - as do the problems that face them. One key to Switzerland’s longevity and overall success has been the way it has passed from one age into another, while adapting along the way.
When older, moneyed men (and women) are willing to take up the challenges of the next generation as if they were their own - good things can happen. But it remains to be seen whether the next wave of well-endowed executives and entrepreneurs will take up the torch with such far-sightedness.
It takes more than cash to make a difference.
It also requires a will and a generosity that can too often be blinded by a focus on pure profits. Too often bankers suffer from this disease.
Besides energy, the challenges of the digital world - including cybersecurity - will require all hands on deck. If experts from the private sector can put their years of experience to work for the public good in the same way they did for personal profit, then perhaps Switzerland can remain as stable as it has until now.
We would love to hear your thoughts…!
➕The Bonus:
🗳 Once more time to the voting machine - Zürich residents will be asked again to approve a stadium project that has already been approved twice before. (Link)
📈 Rates on the rise - With the latest 0.25% increase in the reference rate (to 1.50%), rental prices are looking sure to rise in the next months for at least 50% of all renters. Winter may see another tick up (Link)
💸 A cool 80 million CHF - As part of its crisis rescue package, the Swiss state lent Credit Suisse over 200 billion Swiss francs. It has now been paid back - and the state will pocket a premium of over 80 million CHF. (Link)