2020 CEO Survey: Anthony Sweetman, UBS Australasia

The rate of change in how markets operate has continued to accelerate, says UBS Australasia co-CEO Anthony Sweetman.

What are the three enduring lessons or changes to flow from COVID-19?

It’s unclear how enduring the lessons from COVID-19 will be, given financial markets historically adjust relatively quickly. That said, it’s as important as ever in 2020 to be prepared for unexpected change, to adjust quickly and adapt as circumstances change and be resilient. COVID-19 has accelerated changes, including the adoption of technology, already underway. This includes more workflow and business flexibility and the adoption of remote communication technologies, although I don’t think we will see many people and organisations abandoning offices and in person interaction to the extent predicted by some.

How would you rate the shape of the Australian economy as we head into the new year?

Net positive and improving, although this is not uniform across industries as some areas continue to face considerable challenges. Employment activity has recovered quicker than expected whether measured by ABS payroll data or Google mobility data which is a measure of people returning to work.

The $111bn of fiscal stimulus in the federal budget was much larger than expected and consumer confidence is at a 7 year high.

Our UBS Consumer Survey shows consumers are intending to save less over the next 12 months compared to when we surveyed them in July, suggesting consumer spending should hold up, as a rundown in savings offsets the drop in household cash flow expected as government stimulus is scaled back.

What three reforms are needed to sustainably grow the economy?

Reforms that would most assist economic growth relate to generating productivity growth, which continues to be challenged. Key areas include industrial relations to improve labour market flexibility, the tax system and reducing complexity and costs of complying with rules and regulations generally. In relation to tax this would require the entire system, including corporate, personal, consumption and indirect taxes being reviewed rather than trying to change individual components of the tax system in isolation.

What are the three best growth opportunities for your company in 2021?

The rate of change in how markets operate has continued to accelerate in recent years. The combination of the capabilities of our people with our scale, capital base and risk appetite, both locally and globally, is critical in providing clients with services that they want. This continuing change and the ongoing importance of technological advances combined with a unique breadth of coverage and diversity across our client base allows us to bring differentiated liquidity and solutions for the benefit of our clients.

What impact will digital transformation have on your company?

Digital transformation is key to our ongoing success and market leadership. Innovation and the implementation of new capabilities is going to continue to be necessary to provide the capabilities and efficiencies demanded by clients. We will benefit locally from global investments in digitisation including announced plans to invest $200m in fintech companies over the medium term via a portfolio called UBS Next, to further digitise our services and find new ways to engage with clients.

How would you rate business, state and federal government performance this year?

Overall the Commonwealth and state governments and business have risen to the challenges of 2020 and performed well. There are areas that could have been better but in terms of health the outcomes were much better than most of the world. Australia and the economy appears to be in better shape than most people would have expected.