Swiss Banks Anticipate Decline in Demand for Sustainable Financial Products

A recent survey by consultancy EY reveals that 86% of Swiss banks expect customer demand for sustainable financial products to either stagnate or decline over the medium to long term. This insight signals a cautious outlook within Switzerland’s banking sector regarding green investments.

Key Findings

• Customer Interest Wanes: Sustainable investments have lost momentum recently, as customer interest is notably lower than initially projected.
• Niche Market Status: Green financial products are largely confined to institutional investors and affluent private clients, limiting broader market penetration.
• Regulatory Challenges: Banks report that high regulatory requirements and expensive data collection and reporting efforts complicate sustainable product offerings.
• Main Challenges Cited: The toughest hurdles include sustainability and climate reporting, carbon footprint calculation, risk assessment, and concerns over greenwashing.

Industry Perspective

Swiss banks highlight a disproportionate ratio between the benefits and the efforts needed to comply with sustainability criteria. This imbalance is a significant factor contributing to the anticipated slump in sustainable product demand.

Broader Context

While Switzerland has long been recognized for its pioneering role in sustainable finance, defining sustainable finance’s scope and effectively measuring its performance remain complex challenges. This recent survey underscores the need for clearer standards and more cost-effective reporting frameworks to maintain momentum in the sustainable finance sector.

Sources: EY survey; SWI swissinfo.ch, January 2026
About our reporting: This summary is based on a professionally reviewed translation of news from Swissinfo, ensuring clarity and accuracy for an international audience interested in sustainable finance trends.

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