February 2, 2024

Mr. Piguet, you are a lecturer at the ISFB, where you teach in the field of credit. Could you tell us what is meant by credit in general?

When we think of bank credit, we immediately think of mortgages for individuals wishing to acquire property. It also brings to mind the financing that enables businesses to flourish.

In fact, there are many other uses for credit, such as a documentary credit to secure payment for a wheat shipment from one country to another, a Lombard loan to leverage a portfolio of listed securities, or the financing of an MBO necessary for a management buyout.

Each of these types of financing requires an in-depth understanding of the context in order to propose the solution that meets the needs of the borrower, while complying with the legal framework, prudential guidelines and ensuring that the lending bank receives a return in line with the risk taken. Indeed, every loan carries its share of risk, which needs to be properly assessed.

Both the financing advisor, who sets up the loan, and the credit officer, who approves it, need to master all aspects of financing.

Can you tell us about your teaching experience and your academic and professional background?

Corporate finance captivated me as soon as I left school. The real estate crisis of the 1990s led me to manage cases of companies and real estate developers in difficulty. I completed my Masters in Economics with a diploma from the Institut d'Etudes Immobilières and passed a Corporate Banker Certification.

I then turned my attention to Geneva's SMEs and their managers, followed by multinationals, hotels, EMS and public corporations. Each time, the human and financial issues were different, calling for a fresh look and innovative solutions.

Through my courses at the ISFB, I'm delighted to be able to share with the new generation of bankers some thirty years of technical and human experience.

What do you see as the challenges facing the banking profession in the credit sector?

From understanding the customer's actual needs to granting credit, there are many crucial stages to master, to ensure timely repayment.

Let's not forget that, for the most part, the bank lends out funds entrusted to it by depositing customers. The bank therefore has a major responsibility towards these customers, and more broadly towards the financial and economic world.

With the arrival of platforms and intermediaries of all kinds, fueled by digitization, the business is constantly changing.

Banks are developing alternative solutions to traditional credit, which requires even better-trained advisors, and even though decision-making tools based on artificial intelligence are emerging, the know-how and experience of the financing advisor remain essential.

Jérôme Piguet

Lecturer ISFB