Get to know Dr. Alain Krapl, our new Head Knowledge Exchange & Education. Discover his views on the "War of Talents" and Switzerland as a finance research hub, and learn about his mission, and his plans for the SFI Master Classes:

1.    Alain Krapl, you have spent a large part of your academic career in the United States. As a place for conducting research in finance, how is Switzerland perceived abroad?
Switzerland enjoys a strong reputation as an effective and competitive place from which to conduct research, especially in finance. This is reflected in the fact that researchers from Switzerland, including many SFI professors, regularly publish their research in renowned academic journals such as the Journal of Finance, the Journal of Financial Economics, or the Review of Financial Studies. Which is part of them building a solid reputation.   

2.    To what extent is there a "War of talents" in the academic world? As a research base, how can Switzerland attract academic talent that is being courted worldwide? 
When it comes to attracting and retaining academic talent, we have to keep in mind that top professorships in the US are endowed with sums that are simply unfeasible in Switzerland. Yes, Switzerland has a high standard of living, which is certainly recognized and appreciated by the international research elite. But that cannot fully offset less competitive salaries.
It is precisely in this regard that SFI stakeholders—so, certain Swiss banks and leading Swiss universities—are making an enormous contribution to maintaining Switzerland as a top research location. This contribution takes the shape of them supplementing the salaries of SFI professors, raising them to competitive levels with regard to global academic markets. Without this supplementing, which is provided at no cost to the Swiss taxpayer, world-class financial research in Switzerland would be very difficult to envisage. 

3.    What do you see as the central role of SFI?   
SFI creates value for the Swiss financial center. First, SFI is a respected and recognized institution in the academic world with respect to recruiting and retaining talented finance professors. These researchers are courted by prestigious institutions around the world. Second, SFI is first and foremost at the service of the Swiss financial industry, and being a not-for-profit organization allows SFI to align its interests with those of its stakeholders.    

4.    Since February 1, 2023, you have been responsible for Knowledge Exchange and Education at SFI. What new impetus can we expect from you? What is your main focus in your new role?
Thanks to the work of my predecessor, I am taking over an area of activity that is already very well positioned. In the coming months, I will take a close look at opportunities for improvement—personally, I believe one can always find ways to improve. To do so, I will seek discussions with our stakeholders. Rushing to action is rarely advisable. And change itself should not be the objective. Change should be geared toward creating value for our stakeholders.

5.    Does this also apply to the SFI Master Classes?
Certainly this also holds true for  SFI Master Classes. Only if we continue to explore and discuss the right topics do we create  meaningful value in the form of knowledge capital.

6.    What importance do you attach to knowledge exchange between  SFI faculty and industry practitioners? 
The active exchange of knowledge between SFI faculty and practitioners is at SFI's core. The Swiss financial center owes its top global position primarily to its broad-based financial expertise at the client interface. Thanks to SFI faculty and SFI Master Classes, we facilitate an efficient, effective, and widely recognized "knowledge channel" that helps to ensure the continued leadership of Swiss banks.    

7.    Where will SFI be in ten years? Will it have to transform itself, and if so, in which direction?
Certainly SFI will have to evolve over time, staying abreast of new developments: transformation and growth are part of SFI's DNA. Research in the finance area ideally leads to growth in knowledge that needs to be incorporated into practice. This is one of SFI's key roles—to identify changes early on, explore their implications, gain new insights, and share them with practitioners. If we were not to succeed in creating this value, we would lose our purpose.   

8.    In your opinion, which upcoming topics in the field of finance are of great relevance for the Swiss financial center? Where do you see omissions or gaps in knowledge?
The list of relevant topics is quite extensive and it continues to change. Due to their importance to the Swiss banking sector, overarching topics including central bank policy, interest rates, sustainable finance, geopolitical shocks and risks, and financial technology are broadly relevant. In addition, we also need to continue addressing traditional topics in areas such as corporate governance, financial risk management, investments, and asset management. An exclusive focus on hot topics alone would be myopic, and would likely result in blind spots with respect to significant future developments.

9.    One last question: Why did you decide to pursue an academic career? And why, more precisely, did you choose the field of financial research?
You will laugh, but the answer is: Due to a translation error.  I intended to study business administration in the United States and accidentally ended up studying economics. Over time, I  realized that my true interests lie in finance. It all worked out extremely well, thanks, in part, to that initial mistranslation.