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SSRNA Conversation with Franois Degeorge of the Swiss Finance InstituteThe Swiss Finance Institute Research Paper Series disseminates original theoretical and empirical research with relevance to banking and finance. The series includes research contributions carried out at the Swiss Finance Institute (SFI) by faculty, PhD students and affiliated researchers. Franois Degeorge is a Professor of Finance at the Universit della Svizzera italiana and is the managing director at the Swiss Finance Institute. He spoke with SSRN about SFIs mission, research goals, and unique perspective in the field of finance.Q: Thank you very much for speaking with us, Dr. Degeorge. Perhaps we can begin with a description of how the SFI is structured, what its mission is, and what makes it unique?A: The Swiss Finance Institute is a unique public-private partnership. With support from our founders the Swiss banking industry, the Swiss Confederation, and leading Swiss universities we competitively promote world-class research and teaching in banking and finance in Switzerland. And by combining academic excellence with practical experience, via our industry-oriented offerings, we make the comprehensive expertise of our faculty easily accessible to practitioners and thereby contribute to the strengthening of the Swiss financial center.Q: SFI began operations in 2006, right before the financial crisis of 2007-2009. What were the considerations that led to establishing SFI prior to 2006 and have those changed in the light of the crisis?A: From the very beginning, our founding body set SFI the goal of fostering cutting-edge research and education in banking and finance at Swiss universities and facilitating the exchange of knowledge between academia and industry.This goal has not changed in any way with the financial crisis if anything, the crisis has confirmed how important our work is for a stable and professional financial center.Q: The recent collapse of Credit Suisse last year was a major event, leaving UBS the dominant investment bank in the country. How does SFIs work inform discussions about regulation and the best means of achieving financial stability?A: Through our industry-oriented events and publications, we make the scientific expertise of our SFI faculty members accessible in a variety of ways. This may be in the form of public events or publications, continuing education programs or contributions to the public debate. The focus here is on helping decision-makers in practice whether at banks or in regulation or politics to make decisions that are as well-founded as possible. In this context, our faculty members naturally share not only their own scientific findings, but also their comprehensive knowledge of current global research in their respective fields.Q: Continuing education has been rapidly expanding in recent years. How does SFI approach the curriculum for senior personnel in the finance industry?A: Experienced employees in the financial industry need to be able to acquire knowledge on current issues in a time-efficient and focused manner. We address this need with our SFI Master Classes format. Led by an SFI professor and a senior representative from industry, these half-day workshops share knowledge on highly topical issues in a scientifically sound, highly focused and interactive way. There is a strong interest in our Master Classes among Swiss bank employees in recent years we have welcomed several thousand participants.Q: SFI has a fascinating, multi-institutional approach to its PhD program. What have been some of the lessons that have emerged from its implementation, and do you perhaps see this as a model for higher education generally?A: Thanks to our multi-institutional approach, SFI PhD students have access to the expertise of about one hundred professors across eight Swiss universities. This is certainly one of the reasons why our SFI PhD Program is globally considered one of the top programs in finance and enjoys an excellent international reputation. The outstanding placements of our graduates at top universities worldwide confirm the academic quality of the program.Q: I occasionally hear from marketing researchers that marketing professionals tend not to follow the latest academic research that would be applicable to their work. Do you feel this has been true in finance? And if so, what are the challenges in building bridges between research and practical applications in industry?A: I think that the opposite has been true in finance, especially in the field of asset management, where practice has been deeply influenced by academic insights. Having said that, it is true that it takes time for academic research to find its way into practice. The format of our industry-oriented activities is designed to accelerate the knowledge transfers between academia and the financial industry.Q: How would you characterize the outlook between your PhD students and continuing education executives? Is it as simple as the difference between the kinds of credentials needed for getting a job in finance vs. growing an existing career in finance? Are there significant differences in terms of goals?A: The outlook between PhD students and continuing education executives in finance is of course shaped by their very different career stages and objectives. PhD students usually pursue deep theoretical knowledge with the aim of entering academia or high-level research roles. In contrast, experienced executives are typically looking to refine practical knowledge, stay updated on industry trends and latest findings from research. While PhD students are building credentials for future opportunities, executives are more focused on immediate application and growth within their existing careers. Thus, the goals are very different: theoretical advancement for one group, and practical enhancement for the other.Q: The initial hype regarding AI has been followed by concerns of a bubble and fears that there will be minimal return on already massive investment. What would you say is the view of SFI?A: SFI as an institution does not hold an official view on AI or any other topic. We leave such analyses to the expertise of our individual faculty members, who are focusing on a variety of different aspects and potential fields of application. Personally, I believe that it is quite possible for a transformative technology to be also a risky investment proposition. This was the case for the railways in the 19th century.For more research from the Swiss Finance Institute, visit the Swiss Finance Institute Research Paper Series or subscribe to the series eJournal here.
