29 Oct Interview with Edi Wögerer, CEO, Bank Frick
What factors have allowed Liechtenstein to develop such a significant financial services sector?
Liechtenstein’s success as a financial center in Europe stems from several key factors. First, we have full access to the European market as a member of the European Economic Area. This allows us to easily export our services across all member countries. Second, our strong relationship with Switzerland and the use of the Swiss franc provides us access to Swiss clearing systems and a stable currency. Third, Liechtenstein boasts a AAA credit rating, which reflects our political and economic stability. Last, we are located in the Rhine Valley, one of Europe’s most productive regions. Our success is driven by a combination of these advantages and a passionate commitment to excellence. We have a long-standing history in financial services.
How does Bank Frick stand out from other traditional banks in the market?
We are a family-owned, entrepreneurial bank, which ultimately drives our success. Unlike publicly traded banks, we are not pressured to deliver quarterly results. This allows us to focus on long-term planning and invest in future opportunities. We allocate a budget for innovative banking solutions and have never focused on traditional wealth management. We analyzed our strengths and weaknesses and found we excel in product innovation. Our clients are drawn to us for our unique products and not necessarily for the lowest prices or best relationship management. This insight led us to rebrand and restructure as a product-focused bank rather than a traditional private bank.
While we serve retail clients, we primarily engage in the business-to-business segment through intermediaries. Our strengths are particularly suited to this market where clients require expertise in setting up regulatory-compliant business models and a deep understanding of digital assets and technology. We believe we are uniquely positioned as the only bank in Europe with this level of knowledge. A key milestone for us was entering the e-commerce sector by applying for a principal membership with Visa and MasterCard. This has positioned us as a credit card acquirer and enabled us to support merchants with transaction processing. As fintech companies emerged in the market, we noticed a gap in understanding of regulatory frameworks. We now provide high-quality advice on building compliant business models and ensuring our client’s technological solutions adhere to European regulations.
How is the bank leveraging new digital technologies such as blockchain to position itself as a market leader?
Our innovation mindset drives our approach; we are committed to exploring new opportunities gradually and thoughtfully. Initially, we researched cryptocurrencies and how to buy them, which led to us delving deeper into the blockchain segment. We connected with a Californian who worked for a cryptocurrency exchange. He visited Europe and taught us about the technology and potential business models for our bank. When we launched our first blockchain business model, we engaged all stakeholders — including regulators and correspondent banks — to discuss and establish new rules. We treated blockchain with the same rigor as cash or securities. This collaboration contributed to the development of Europe’s first blockchain law in partnership with Thomas Nägele, a key figure in the blockchain sector. We are pioneers in the blockchain space; we were one of the first banks in Europe to engage with it.
Ultimately, we are a bank that collaborates closely with business professionals. Over the past 20 years our clients have undergone a significant digital transformation. In response, we have focused on understanding their needs and provided digital access to our services through interfaces such as application programming interfaces. Our clients seek safe deposits and secure payment processes with modern communication methods. They expect electronic transactions rather than traditional paper-based orders. Having a solid legal framework such as the T4 blockchain law is essential in supporting our clients effectively.
What efforts is Bank Frick making to promote education and training to foster the next leaders of Liechtenstein’s financial services sector?
As pioneers in the field, we prioritize two key initiatives: contributing our knowledge to universities and educating future professionals. This ensures we cultivate skilled employees who understand the industry. Liechtenstein aims to position itself as a high-quality financial center with robust regulatory frameworks. Having well-educated and experienced staff is essential. We also value young and talented individuals who can bring fresh ideas, even those that may initially seem unconventional for a bank.
How important is supporting financial sustainability and green investment for banks in 2024?
This is a crucial topic for Liechtenstein and all banks. It is essential that we constantly analyze our service portfolio and its environmental impact to reassess our business models. Since we do not offer our own products, our focus is on supporting our clients’ business models. For instance, while blockchain technology requires significant energy for decentralized payment systems, we are exploring ways to mitigate this impact. We also support investigation into technologies that can reduce energy consumption.
Moving forward, what long-term vision do you have for Bank Frick?
We aim to become the most entrepreneurial bank in the market, one that is always seeking new opportunities, technologies and trends. We emphasize the importance of looking forward rather than resting on our current successes. We are backed by a family shareholder. This allows us the freedom to pursue long-term plans such as those we started in 2014, some of which may take six years or more before becoming profitable. We also recognize the need to renew our business models to remain competitive in Europe. Investing in innovative banking solutions, people and technology has been our top priority since I became CEO ten years ago. The family’s support has allowed us to reinvest profits rather than pay dividends, which has been crucial for our growth. We help our clients navigate and adapt to new trends, technologies and regulatory frameworks. Ultimately, it is vital to have a passionate team that believes in what they do. This passion makes it easier to guide and support them. We have cultivated a forward-looking and dedicated team.
What final comments do you have for the readers of USA Today?
We are proud to sponsor the country’s largest sporting event, the LieMudRun obstacle race held in September. We invite all Americans to experience our country by participating in the event. Participants will explore our stunning natural landscapes, castles and historic buildings as the race winds through nearly half of the country. Liechtenstein is a beautiful place.