Ticino’s finance sector reinvents itself: the economy goes digital

Context

TL;DR

• Ticino's economy shifts from physical to intangible assets.
• Bank lending challenges due to intangible asset valuation.
• Ticinese companies turn to private equity and venture capital.
• Cross-border workers need digital skills for new economy.

Key facts

• Economic shift: From physical to intangible assets like software, data, research.
• Computational growth: Increased by six orders of magnitude in the past two decades.
• Researchers growth: 50% increase since 2000, from 3,000 to 4,500 per million inhabitants.
• Financing challenge: Difficulty in valuing intangible assets as collateral for loans.
• Alternative financing: Private equity, venture capital, crowdfunding, equity financing.
• Skills demand: Increase in demand for data management, algorithm development, and digital project coordination.
• Training programs: SUPSI and USI expanding programs in AI, cybersecurity, and data management.

In the coming years, economic value in Ticino — as in the rest of Switzerland and advanced Europe — will no longer depend solely on warehouses, machinery or physical infrastructure. According to Giorgio Gobbi, head of the Milan branch of the Bank of Italy, the engine of development is shifting toward intangible assets: software, data, research and human capital. Speaking at the Festival of Finance for the Real Economy, organized by LIUC University of Castellanza in partnership with AIFI and Confindustria Varese, Gobbi noted that over the past two decades, computational capacity has increased by six orders of magnitude, from the millimeter to the kilometer. 'This is the foundation of the knowledge economy,' he stated.

During his speech, Gobbi highlighted that the number of researchers worldwide has grown by 50% since the beginning of the century, rising from 3,000 to nearly 4,500 per million inhabitants. This shift reflects a broader transformation: today, economic value is increasingly built on what can be known, processed and developed, rather than what can be touched. However, this transition is challenging traditional financial models, which are still largely based on bank lending.

Among the main limitations of current tools are the difficulties in valuing intangible assets and using them as collateral for financing. While a warehouse or a machine can be pledged to a bank, an algorithm or a database represents assets that are almost impossible to evaluate — and, above all, their recoverable value in the event of bankruptcy is often minimal. This is pushing businesses — including those in Ticino — to reduce their reliance on bank credit and instead turn to their own resources or alternative instruments such as private equity and venture capital.

'Intangible assets are difficult to value and almost impossible to use as collateral. In the event of failure, their recoverable value is often minimal.' Giorgio Gobbi, Head of Milan Branch, Bank of Italy

Ticino’s real economy: between industry and innovation

Ticino, with its entrepreneurial fabric characterized by small and medium-sized enterprises often specialized in high-tech sectors, sits at the heart of this transition. Sectors such as fintech, digital logistics and data-driven services are growing rapidly, but must adapt to new ways of raising capital. According to data presented by Gobbi, business lending in Europe is slowing down, while the share of equity capital and alternative investments is on the rise. This trend is also affecting Ticinese companies, which are increasingly turning to private equity funds or direct financing from institutional investors to support innovative projects.

At the same time, the ability to attract talent and investment in research is becoming a key factor in the canton’s competitiveness. Businesses operating in knowledge-intensive sectors need a financial ecosystem capable of supporting their growth without binding them to traditional debt-based logic.

Operational details

For cross-border workers employed in Ticino, this economic transformation has concrete implications that go beyond a simple shift in production paradigms. The move from an economy based on physical assets to one founded on intangible assets is indeed reshaping how businesses assess risks, seek financing, and manage human resources. A tangible example concerns employment contracts and pay policies: companies operating in innovative sectors tend to reward human capital with performance-based incentives and profit-sharing schemes rather than fixed wages.

Before vs after: what changes for cross-border workers and businesses

Before the current transformation:

• Ticinese companies primarily financed growth through bank loans, using warehouses and machinery as collateral.
• Employment contracts were often based on fixed salaries and traditional benefits (bonuses, health insurance).
• A company’s value was closely tied to physical assets (plants, real estate).

After the shift toward a knowledge-based economy:

• Companies are reducing their reliance on bank credit and instead turning to their own funds or alternative financing tools (private equity, venture capital).
• Employment contracts now reward flexibility, digital skills, and the ability to generate value through data and innovation.
• A company’s value increasingly depends on software, patents, data, and employee expertise.

This shift is also influencing demand for skills in the Ticinese labor market. Companies are increasingly seeking professionals capable of managing data, developing algorithms, or coordinating innovative projects. According to insights from the Festival della finanza, the global growth in researchers (+50% since 2000) reflects this trend, which is also translating into greater competition among Cantonal businesses to attract talent.

Alternative financial instruments: opportunities and limitations

For Ticinese companies looking to seize the opportunities of an intangible economy, turning to alternative financial instruments is a necessity. Among the available options are:

• Private equity and venture capital: These enable financing for high-risk, high-reward projects typical of innovative sectors. However, these tools require careful risk assessment and transparent financial information management.
• Crowdfunding and digital investment platforms: These allow businesses to raise capital from a broad investor base but are subject to strict regulations and may be challenging to scale for large projects.
• Equity financing: Companies can issue shares to attract investors, but this solution requires a solid corporate structure and clear governance.

For cross-border workers in innovative sectors, these dynamics translate into a greater focus on continuous training and skill development. Ticinese companies are increasingly investing in upskilling initiatives for their employees, particularly in areas like programming, data analysis, and digital project management. This trend can also represent an opportunity for cross-border workers looking to strengthen their position in the Ticinese market.

The role of financial institutions and education

Ticinese banks and financial institutions are already adapting their business models to meet the new demands of an intangible economy. However, this change also requires support from local institutions, such as SUPSI and USI, which are expanding training programs in fields like artificial intelligence, cybersecurity, and data management. These programs are essential to ensure the Cantone has a skilled workforce capable of supporting the transition toward an increasingly digital economy.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

If your business operates in Ticino or you are a cross-border worker in innovative sectors, it is essential to understand how to adapt your financial and professional strategies to this new economic reality. Here are the key steps to tackle the change:

1. Assess alternative financing options

If your business faces difficulties securing bank credit for projects related to software, data, or innovation, consider exploring alternative funding tools:

• Private equity and venture capital: reach out to investment firms specializing in startups and innovative projects. In Ticino, some key players like SUPSI and USI can provide connections to local or international funds.
• Crowdfunding: evaluate platforms such as Kickstarter or others focused on financing tech projects. Ensure you verify the legal and tax requirements specific to Ticino.
• Equity financing: if your company has a solid corporate structure, consider issuing new shares to attract investors.

⚠️ Caution: these tools require a thorough risk assessment and transparent financial information management. Before proceeding, consult an accountant or a financial advisor experienced in intangible economy matters.

2. Develop digital skills within your workforce

If you are a cross-border worker in Ticino, investing in continuous training can give you a competitive edge. Ticinese companies are increasingly seeking professionals capable of managing data, developing algorithms, or coordinating innovative projects. Some useful training paths include:

• Certifications in programming and software development (e.g., Python, Java, AI).
• Data analysis and machine learning courses offered by SUPSI, USI, or other local institutions.
• Cybersecurity training, which is in high demand due to increasing digitalization.

💡 Tip: many Ticinese companies offer funded or subsidized training programs for employees. Check with your employer to see if upskilling opportunities are available.

3. Optimize personal financial management

Even at an individual level, the transformation of the intangible economy can impact your income and career prospects. If you are a cross-border worker, here’s what you can do:

• Update your professional profile on platforms like LinkedIn, highlighting digital skills and experience in innovative sectors.
• Consider participating in research projects or startups in the canton, which may offer career and training opportunities.
• Consult a financial advisor to optimize the management of your income as a cross-border worker, especially if you operate in high-risk or unstable sectors.

4. Monitor Ticino’s fiscal and financial policies

Ticino’s institutions are introducing new regulations to support innovation and digitalization. Stay informed about tax incentives for investments in research and development, which can help reduce the tax burden on businesses and workers.

Useful tools to explore further

• Cross-border worker net salary calculator
• Guide to tax management for cross-border workers in Ticino
• SUPSI and USI training programs for digital skills
• Contacts with Ticinese private equity funds
• Ticino regulations on crowdfunding and alternative investments

If you want to understand how this transformation may impact your work situation or that of your business, the first step is to carefully assess the available options and adapt your strategies accordingly. Ticino offers an evolving ecosystem that can represent a unique opportunity for those who know how to seize the signs of change.

Source: varesenews.it